Debt (Tables)

12 Months Ended

Dec. 31, 2023

For the year ended December 31, 2023, the three months ended December 31, 2022 and the nine months ended September 30, 2022, the components of interest expense were as follows:


	Year Ended December 31, 2023			Three Months Ended December 31, 2022			Nine Months Ended September 30, 2022
	(Successor Basis)						(Predecessor Basis)
Stated interest expense	$	2,686,250		$	671,562		$	2,014,687
Amortization of issue discount	—			—			155,787
Amortization of financing costs	—			—			129,064
Amortization of purchase discount (1)	1,170,639			272,904			—
Total interest expense	$	3,856,889		$	944,466		$	2,299,538
Weighted average debt outstanding	$	38,375,000		$	38,375,000		$	38,375,000
Cash paid for interest expense	$	2,686,250		$	671,562		$	2,014,687
Stated interest rate	7.00		%	7.00		%	7.00		%
Effective interest rate (2)	7.63		%	7.63		%	7.63		%

_______________

(1)The purchase discount was recorded in connection with the Merger (Note 5)

(2)The effective interest rate of the debt component is equal to the stated interest rate plus the amortization of issue discount, if any.

For the year ended December 31, 2023, three months ended December 31, 2022 and nine months ended September 30, 2022, the components of interest expense were as follows:


	Year Ended December 31, 2023			Three Months Ended December 31, 2022			Nine Months Ended September 30, 2022
	(Successor Basis)						(Predecessor Basis)
Stated interest expense	$	1,677,992		$	359,375		$	909,454
Amortization of issue discount	—			—			117,506
Amortization of financing costs	98,604			—			53,910
Unused fee	—			—			20,927
Total interest expense	$	1,776,596		$	359,375		$	1,101,797
Weighted average debt outstanding	$	19,958,904		$	22,300,000		$	21,390,110
Cash paid for interest expense	$	1,677,992		$	359,375		$	930,381
Stated interest rate	12.48		%	5.63		%	5.63		%
Effective interest rate (1)	13.10		%	6.25		%	6.25		%

_______________

(1)The effective interest rate of the debt component is equal to the stated interest rate plus the amortization of issue discount and fees paid to the lender, if any.

Schedule of Debt Maturity

Scheduled debt principal payments for each of the five calendar years following December 31, 2023 are as follows:


Years Ending December 31,	Total
2024	$	15,000,000
2025	—
2026	38,375,000
2027	—
2028	—
Thereafter	—
	53,375,000
Unamortized discount, net	(3,212,853)
Total	$	50,162,147

Terra Income Fund 6, LLC 10-K