Spring Valley Acquisition Corp. II has entered into a new financing agreement by issuing an unsecured promissory note of up to $1.5 million to Spring Valley Acquisition Sponsor II, LLC, a significant shareholder of the company. The note, which does not bear interest, allows the company to draw funds as needed before the maturity date, defined as the date of the company's initial business combination. Upon consummation of the business combination, the sponsor may elect to convert all or part of the outstanding principal into working capital warrants, with terms identical to the private placement warrants issued during the company's initial public offering. The agreement includes customary default provisions and was issued under an exemption from SEC registration requirements.