Hallador Energy (NASDAQ: HNRG) revises leverage covenants in credit pact
Rhea-AI Filing Summary
Hallador Energy Company entered into a Second Amendment to its Credit Agreement with Texas Capital Bank and other lenders. The change revises financial maintenance covenants to align with an improved risk profile and to support obligations under an Asset Purchase Agreement with Energy World Corporation Ltd.
After the amendment, the total leverage ratio may not exceed 4.25 to 1.0 as of the last day of each quarter ending on or after June 30, 2026. The senior secured leverage ratio may not exceed 3.00 to 1.0 as of June 30, 2026 and September 30, 2026, 2.75 to 1.0 as of December 31, 2026 and March 31, 2027, and 2.50 to 1.0 as of each quarter end on or after June 30, 2027. All other terms of the credit facility remain unchanged.
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8-K Event Classification
Key Figures
Key Terms
Material Definitive Agreement regulatory
Credit Agreement financial
financial maintenance covenants financial
total leverage ratio financial
senior secured leverage ratio financial
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
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CURRENT REPORT
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Item 1.01 – Entry into a Material Definitive Agreement
On June 25, 2026, Hallador Energy Company (the "Company") entered into a Second Amendment (the "Amendment") to its Credit Agreement, dated as of March 5, 2026 (as amended, the "Credit Agreement"), by and among the Company, Texas Capital Bank, as administrative agent (the "Administrative Agent"), and the lenders party thereto (the "Lenders"), which provides for, among other things, the revision of certain financial covenants under the credit facility (the “Amendment”) to reflect the ongoing improvement in the Company’s risk profile driven by the recent execution of offtake agreements and in support of the Company’s execution of its obligations under the Asset Purchase Agreement (the “APA”) between the Company and Energy World Corporation Ltd. incorporated by reference to Exhibit 10.1 to the Company’s Current Report on Form 8-K filed on June 2, 2026.
The Amendment provides for, among other things, the revision of certain financial maintenance covenants under the Credit Agreement. After giving effect to the Amendment, (i) as of the last day of each quarter ending on or after June 30, 2026, the Company’s total leverage ratio may not exceed 4.25 to 1.0, (ii) as of June 30, 2026 and September 30, 2026, the Company’s senior secured leverage ratio may not exceed 3.00 to 1.0, (iii) as of December 31, 2026 and March 31, 2027, the Company’s senior secured leverage ratio may not exceed 2.75 to 1.0, and (iv) as of the last day of each quarter ending on or after June 30, 2027, the Company’s senior secured leverage ratio may not exceed 2.50 to 1.0. The other terms and conditions of the Credit Agreement, as amended by the Amendment, remain unchanged.
The foregoing description of the Amendment is a summary, and does not purport to be complete, and is subject to, and qualified in its entirety by reference to, the Amendment, a copy of which is attached hereto as Exhibit 10.1 and is incorporated herein by reference.
Item 2.03 Creation of Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant.
The information set forth in Item 1.01 above is hereby incorporated by reference into this Item 2.03.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits.
Exhibit No. | Description |
10.1 | Second Amendment to Credit Agreement dated as of March 5, 2026. |
104 | Cover Page Interactive Data File (embedded within the Inline XBRL document). |
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
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| Hallador Energy Company |
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June 26, 2026 | By: | /s/ERIC VAN DEMAN |
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| Eric Van Deman Chief Accounting Officer |
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