Hallador Energy Closes $120 Million Senior Secured Credit Facilities

Hallador Energy (Nasdaq: HNRG) closed a $120 million Senior Secured Credit Agreement on March 5, 2026, maturing March 5, 2029.

Rhea-AI Summary

Hallador Energy (Nasdaq: HNRG) closed a $120 million Senior Secured Credit Agreement on March 5, 2026, maturing March 5, 2029. The Facilities comprise a $75 million revolving credit facility and a $45 million delayed draw term loan facility.

The revolving facility includes a $25 million letters-of-credit sub-facility, a $10 million swingline, and an accordion feature to request up to $25 million incremental commitments. The Company plans to use proceeds to refinance its prior credit facility, provide working capital and support strategic growth. Texas Capital Bank serves as administrative agent; Old National Bank and First Financial Bank participated in the syndicate.

Positive

• Secured $120 million in committed financing maturing March 5, 2029
• Extended debt maturity profile to 2029, reducing near-term refinancing pressure
• Revolving $75 million facility adds working capital and liquidity flexibility
• Accordion feature allows up to $25 million incremental commitments subject to conditions

Negative

• Delayed draw $45 million term loan requires satisfaction of conditions before availability
• Incremental accordion commitments and delayed draw are conditional, not guaranteed capital sources

Argus Mar 11 session

-0.89% close to close 1.4x rel. volume Open Argus

Details

News Market Reaction – HNRG

On Mar 11, the first trading day after this news, HNRG closed 0.89% below the previous close.

Data tracked by StockTitan Argus for the Mar 11 session.

Key Figures

Total credit facilities: $120 million Revolving credit facility: $75 million Delayed draw term loan: $45 million +5 more

Total credit facilities

$120 million

New Senior Secured Credit Agreement closed March 5, 2026

Revolving credit facility

$75 million

Component of new senior secured facilities

Delayed draw term loan

$45 million

Component of new senior secured facilities

Letter of credit sub-facility

$25 million

Sub-limit within revolving credit facility

Swingline sub-facility

$10 million

Sub-limit within revolving credit facility

Accordion feature

$25 million

Potential additional incremental commitments under Credit Agreement

Maturity date

March 5, 2029

Final maturity of new Senior Secured Credit Agreement

Price vs 52-week high

-22.71%

Pre-news level vs 52-week high of $24.7

Historical Context

5 past events · Latest: Mar 05

5 events

1. Mar 05

   Earnings call schedule

   24h Move

   +4.1%

   Scheduled Q4 and full-year 2025 results conference call with investors.

2. Jan 14

   Equity offering priced

   24h Move

   -8.9%

   Priced common stock offering around $50M gross proceeds at $18 per share.

3. Jan 13

   Equity offering proposed

   24h Move

   -8.9%

   Announced proposed $50M common stock offering with 15% underwriter option.

4. Jan 06

   Board change

   24h Move

   -1.5%

   Appointed Barbara Sugg to Board, replacing a resigning director and keeping six members.

5. Dec 16

   Gas expansion update

   24h Move

   -15.2%

   Filed ERAS application for up to 515 MW gas project and outlined financing plans.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Key Terms

senior secured credit agreement, revolving credit facility, term loan facility, letters of credit, +4 more

8 terms

senior secured credit agreement financial

"closed a $120 million Senior Secured Credit Agreement (the “Credit Agreement”) maturing"

A senior secured credit agreement is a loan contract in which the borrower agrees to repay lenders first and backs the loan with specific assets as collateral, like a mortgage that gives a lender a claim on a house if payments stop. Investors care because this debt has priority over other obligations in a default, reducing lender risk and often constraining a company’s financial choices and cash flow, which can affect equity value and future financing.

revolving credit facility financial

"consisting of a $75 million revolving credit facility and a $45 million delayed"

A revolving credit facility is a type of loan that a business can borrow from whenever it needs money, up to a set limit. It’s like having a credit card for companies—allowing them to borrow, pay back, and borrow again as needed, providing flexibility for managing cash flow or funding short-term expenses.

term loan facility financial

"and a $45 million delayed draw term loan facility (collectively, the “Facilities”)."

A term loan facility is a type of loan provided by a lender that is repaid over a set period of time, usually with fixed payments. It functions like a large, upfront loan that a borrower agrees to pay back gradually, often used to fund major investments or projects. For investors, understanding a company's use of such loans helps assess its financial stability and risk level.

letters of credit financial

"includes a $25 million sub-facility for letters of credit and a $10 million"

A letter of credit is a promise from a bank to pay a seller if the buyer fails to do so, commonly used in trade and large contracts to ensure payment. Think of it as a bank standing in for the buyer, like a certified check or payment insurance that reduces the risk of nonpayment. For investors, letters of credit matter because they affect a company’s cash flow, borrowing needs and contingent liabilities, and signal how much credit support a business requires to secure deals.

swingline sub-facility financial

"for letters of credit and a $10 million swingline sub-facility, and an accordion"

A swingline sub-facility is a short-term, fast-access loan built into a larger credit agreement that lets a borrower draw a small amount of cash quickly for immediate needs, like bridging payroll or meeting an unexpected bill. For investors, it matters because use of this emergency credit can signal temporary cash stress or provide reassurance that the company can meet short-term obligations without selling assets, affecting perceptions of liquidity and short-term default risk.

accordion feature financial

"swingline sub-facility, and an accordion feature whereby the Company may request"

An accordion feature is a clause in a loan or financing agreement that allows a company to expand the size of a credit line or the amount of securities available under the same contract without drafting a completely new deal. Like a suitcase that can be extended to hold more items, it gives a company quick flexibility to raise extra money, which can help fund growth but may increase debt or dilute existing shareholders—so investors watch it for changes in risk and ownership.

administrative agent financial

"Texas Capital Bank arranged the transaction and serves as administrative agent,"

An administrative agent is a bank or financial firm appointed to handle the day-to-day paperwork and communication for a group of lenders on a loan or credit agreement, acting as the central point for collecting payments, distributing funds, monitoring covenants, and sharing information. For investors, the administrative agent matters because it influences how quickly lenders receive updates, how smoothly repayments and waivers are handled, and how effectively the lending group enforces terms — think of it as a property manager coordinating tasks for multiple owners.

letter of credit issuer financial

"Old National Bank acted as joint lead arranger and letter of credit issuer,"

A letter of credit issuer is the bank or financial institution that guarantees payment under a letter of credit, acting like a trusted guarantor who promises to pay a seller if the buyer cannot. Investors care because the issuer’s credit strength determines how reliable that guarantee is, affecting the chances a deal will close, the counterparty risk on a company’s balance sheet, and potential contingent liabilities.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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TERRE HAUTE, Ind., March 10, 2026 (GLOBE NEWSWIRE) -- Hallador Energy Company (Nasdaq: HNRG) (“Hallador” or the “Company”) today announced that on March 5, 2026, the Company closed a $120 million Senior Secured Credit Agreement (the “Credit Agreement”) maturing on March 5, 2029, consisting of a $75 million revolving credit facility and a $45 million delayed draw term loan facility (collectively, the “Facilities”). The Company expects to use borrowings under the Facilities to refinance its prior credit facility and provide working capital. The Company also benefits by extending the Company’s debt maturity profile and enhancing overall liquidity. Borrowings may also be used to support strategic growth initiatives and for general corporate purposes.

The revolving credit facility includes a $25 million sub-facility for letters of credit and a $10 million swingline sub-facility, and an accordion feature whereby the Company may request up to $25 million of additional incremental commitments, subject to certain conditions set forth in the Credit Agreement. The delayed draw term loan facility becomes available upon the Company satisfying certain conditions set forth in the Credit Agreement.

Texas Capital Bank arranged the transaction and serves as administrative agent, swingline lender and letter of credit issuer. Old National Bank acted as joint lead arranger and letter of credit issuer, and First Financial Bank, N.A. participated as a lender in the financing. In connection with entering into the new Credit Agreement, the Company provided notice to terminate its prior credit agreement with PNC Bank, National Association, effective March 5, 2026.

“We are pleased with the continued improvement in our debt structure, which reflects the underlying strength of our balance sheet and the markets' confidence in our long-term strategy,” said Brent Bilsland, President and Chief Executive Officer. “As we enter this next phase of growth, we want to express our appreciation for the cooperation and support of our lending group. We are particularly excited to welcome Texas Capital Bank as a new partner in our syndicate and look forward to working together as we continue to execute our long-term strategy. We also thank the teams at Old National Bank and First Financial Bank for their continued commitment and support.”

Forward-Looking Statements

This release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the "Securities Act"), and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"). Statements that are not strictly historical statements constitute forward-looking statements and may often, but not always, be identified by the use of such words such as "expects," "believes," "intends," "anticipates," "plans," "estimates," "guidance," "target," "potential," "possible," or "probable" or statements that certain actions, events or results "may," "will," "should," or "could" be taken, occur or be achieved.  Forward-looking statements are based on current expectations and assumptions and analyses made by Hallador and its management in light of experience and perception of historical trends, current conditions and expected future developments, as well as other factors appropriate under the circumstances that involve various risks and uncertainties that could cause actual results to differ materially from those reflected in the statements. These risks include, but are not limited to, those set forth in Hallador’s annual report on Form 10-K for the year ended December 31, 2024, and other Securities and Exchange Commission filings. Hallador undertakes no obligation to revise or update publicly any forward-looking statements except as required by law.

About Hallador Energy Company

Hallador Energy Company (Nasdaq: HNRG) is a vertically-integrated Independent Power Producer (IPP) based in Terre Haute, Indiana. The Company has two core businesses: Hallador Power Company, LLC, which produces energy and provides accredited capacity at its one Gigawatt (GW) Merom Generating Station, and Sunrise Coal, LLC, which produces and supplies fuel to the Merom Generating Station and other companies. To learn more about Hallador, visit the Company’s website at http://www.halladorenergy.com/.

Company Contact

Todd E. Telesz
Chief Financial Officer
TTelesz@halladorenergy.com

Investor Relations Contact

Sean Mansouri, CFA

Elevate IR
(720) 330-2829
HNRG@elevate-ir.com

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What did Hallador Energy (HNRG) announce on March 5, 2026 regarding new credit facilities?

Hallador Energy closed a $120 million senior secured credit agreement maturing March 5, 2029. According to the company, the Facilities include a $75 million revolving credit and a $45 million delayed draw term loan to refinance prior debt and provide liquidity.

How will the new HNRG $75 million revolving credit facility affect liquidity and working capital?

The $75 million revolving facility increases available liquidity and working capital capacity immediately. According to the company, it also includes a $25 million letters-of-credit sub-facility and a $10 million swingline for short-term funding needs.

When will the $45 million delayed draw term loan for HNRG be available to the company?

The $45 million delayed draw becomes available only after the company satisfies certain conditions in the credit agreement. According to the company, those conditions must be met before drawdowns can occur, so availability is conditional.

Who arranged Hallador Energy's new $120 million credit agreement and who are the lenders?

Texas Capital Bank arranged the transaction and serves as administrative agent and swingline lender. According to the company, Old National Bank acted as joint lead arranger and First Financial Bank participated as a lender in the syndicate.

Does the HNRG credit agreement include options to increase borrowing capacity in the future?

Yes; the agreement contains an accordion feature allowing up to $25 million incremental commitments subject to conditions. According to the company, additional commitments require lender approval and conditions set forth in the credit agreement.