Hallador Energy (NASDAQ: HNRG) adds $120M credit, extends debt to 2029
Rhea-AI Filing Summary
Hallador Energy Company entered into a new $120 million senior secured Credit Agreement on March 5, 2026, providing a $75 million revolving credit facility and a $45 million delayed draw term loan facility maturing on March 5, 2029. The revolver includes a $25 million letter-of-credit subfacility and a $10 million swingline subfacility, plus an accordion feature for up to $25 million of additional commitments.
Borrowings accrue interest at either a Base Rate or Term SOFR plus margins that vary with Hallador’s total leverage ratio, and the company pays a 0.50% fee on unused revolver commitments. The facilities include leverage, liquidity and coverage covenants and are secured by substantially all assets of Hallador and certain subsidiaries. Hallador is using the new facilities to refinance its prior PNC Bank credit agreement and to support working capital, general corporate purposes and potential strategic growth initiatives, while extending its debt maturity profile and enhancing liquidity.
Positive
- None.
Negative
- None.
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported):
(Exact name of registrant as specified in its charter)
(State or other jurisdiction | (Commission | (IRS Employer |
(Address, including zip code, of principal executive offices) |
Registrant’s telephone number, including area code: (
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | |
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | |
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) | |
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Securities registered pursuant to Section 12(b) of the Act:
Title of each class |
| Trading Symbol |
| Name of each exchange |
|
|
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
1
Item 1.01 Entry into a Material Definitive Agreement.
On March 5, 2026, Hallador Energy Company (the “Company”) entered into a Credit Agreement (the “Credit Agreement”), among the Company, Texas Capital Bank, as administrative agent (the “Agent”), swingline lender and letter of credit issuer, Old National Bank, as joint lead arranger and letter of credit issuer, First Financial Bank, N.A., as lender, each other lender from time to time party thereto, and each other letter of credit issuer from time to time party thereto, pursuant to which the Company obtained (i) a $75 million senior secured revolving credit facility (the “Revolving Credit Facility”) and (ii) a $45 million senior secured term loan facility (the “Delayed Draw Term Loan Facility” and, together with the Revolving Credit Facilities, the “Facilities”). The Delayed Draw Term Loan Facility will only become available to the Company upon satisfaction of certain conditions as set forth in the Credit Agreement. The Revolving Credit Facility includes (i) a $25 million subfacility for letters of credit (each, a “Letter of Credit”) and (ii) a $10 million subfacility for swingline loans. The Company may, subject to the conditions set forth in the Credit Agreement, request additional revolving facility commitments and incremental term loan commitments in an aggregate amount not to exceed $25 million. The Company and certain of its subsidiaries, as guarantors under the Credit Agreement, granted a security interest in substantially all of their assets to the Agent for the benefit of the lenders to secure the Company’s obligations under the Credit Agreement. The Facilities will mature on March 5, 2029 (the “Maturity Date”).
Borrowings under the Facilities will bear interest at a rate equal to, at the Company’s election, either a Base Rate or Term SOFR rate, plus an applicable margin based upon the Company’s total leverage ratio. As further detailed in the Credit Agreement, (1) Base Rate loans will bear interest at a rate equal to the greater of (a) the Prime Rate; (b) the sum of the Federal Funds Rate plus one half of one percent (0.50%); and (c) the Term SOFR plus one percent (1.00%), in each case, plus the applicable margin for Base Rate loans, which ranges from 2.25% to 2.75%, and (2) Term SOFR loans will bear interest at Term SOFR, plus the applicable margin for Term SOFR loans, which ranges from 3.25% to 3.75%. The Company has also agreed to pay a commitment fee of one half of one percent (0.50%) on the daily average unused amount of the commitment of each Revolving Credit Facility lender for the period from and including the date of the Credit Agreement to the Maturity Date to maintain the availability under the Revolving Credit Facility. The Company may also choose to reduce its commitments under the Revolving Credit Facility subject to notice and other customary requirements.
The Facilities contain affirmative and negative covenants, including covenants that limit the Company and its restricted subsidiaries from incurring indebtedness, granting liens, engaging in fundamental changes, making restricted payments, making investments, and disposing of assets. The negative covenants include certain financial covenants, including a total leverage ratio ranging between 2.50 to 1.00 and 2.00 to 1.00 prior to the date on which the conditions to availability of the Delayed Draw Term Loan Facility are satisfied and between 3.25 to 1.00 and 3.00 to 1.00 from and after such date, a senior secured leverage ratio ranging between 2.50 to 1.00 and 2.00 to 1.00 prior to the date on which the conditions to availability of the Delayed Draw Term Loan Facility are satisfied and of 2.00 to 1.00 from and after such date, a minimum liquidity threshold ranging between $20 million to $30 million prior to the date on which the conditions to availability of the Delayed Draw Term Loan Facility are satisfied, and a fixed charge coverage ratio of 1.25 to 1.00.
The Company may use the funds provided under the Facilities to provide a portion of the refinancing of the obligations of the Company and its subsidiaries under its existing credit agreement with PNC Bank, National Association (the “Existing Credit Agreement”) and for ongoing working capital and general corporate purposes. The Facilities contain certain representations, warranties and events of default (which are, in some cases, subject to certain exceptions, thresholds and grace periods) including, but not limited to, non-payment of principal and interest, failure to perform or observe covenants, breaches of representations and warranties and certain bankruptcy-related events.
The foregoing description of the Facilities does not purport to be complete and is qualified in its entirety by reference to the Credit Agreement, which is filed as Exhibit 10.1 to this Current Report on Form 8-K and is incorporated by reference herein.
2
Item 1.02 Termination of a Material Definitive Agreement.
In connection with the Company’s entry into the Credit Agreement, on March 4, 2026, the Company delivered written notice to PNC Bank, National Association to terminate the Company’s Existing Credit Agreement, effective as of March 5, 2026. The Company is not subject to any termination penalties related to the termination of the Existing Credit Agreement.
A copy of the Existing Credit Agreement was filed as Exhibit 10.1 to the Form 10-Q filed August 7, 2023. The description of the Existing Credit Agreement contained in this Current Report on Form 8-K does not purport to be complete and is qualified in its entirety by reference to the copy of the Existing Credit Agreement filed as Exhibit 10.1 to the Form 10-Q filed August 7, 2023.
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 | Credit Agreement, dated March 5, 2026, among Hallador Energy Company, the lenders party thereto, the letter of credit issuers party thereto and Texas Capital Bank, as administrative agent. |
99.1 | Press Release of Hallador Energy Company |
104 | Cover Page Interactive Data File (embedded within the Inline XBRL document). |
3
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
|
| Hallador Energy Company |
|
|
|
March 10, 2026 | By: | /s/ BRENT K. BILSLAND |
|
| Brent K. Bilsland President and Chief Executive Officer |
4
EXHIBIT 99.1
Hallador Energy Closes $120 Million Senior Secured Credit Facilities
TERRE HAUTE, Ind., March 10, 2026 – 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
What new credit facilities did Hallador Energy (HNRG) secure?
How will Hallador Energy use the new $120 million credit facilities?
What are the key terms of Hallador Energy’s new revolving credit facility?
What interest rates apply to Hallador Energy’s new credit facilities?
Which banks are involved in Hallador Energy’s new Credit Agreement?
What happened to Hallador Energy’s prior PNC Bank credit agreement?
Filing Exhibits & Attachments
6 documentsPress Releases
Agreements & Contracts
