Hallador Energy secures $120M credit agreement, shares rise 4.01%

By Chris Stiles • Wednesday, March 11 14:00 • Permanent Link

Hallador Energy Company (NASDAQ: HNRG) has just closed a $120 million senior secured credit agreement consisting of a $75 million revolving credit facility and a $45 million delayed draw term loan facility. This new agreement is set to mature on March 5, 2029. The company plans to use the funds to refinance its prior credit facility and provide working capital, with the additional possibility of supporting strategic growth initiatives and general corporate purposes.

The revolving credit facility includes a $25 million sub-facility for letters of credit and a $10 million swingline sub-facility, with an accordion feature that allows the company to request up to $25 million of additional incremental commitments, subject to certain conditions. 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, while 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.

Brent Bilsland, President and CEO of Hallador Energy, expressed satisfaction with the company's improved debt structure, reflecting the underlying strength of its balance sheet and the markets' confidence in its long-term strategy. He also expressed appreciation for the cooperation and support of the lending group, particularly welcoming Texas Capital Bank as a new partner in the syndicate and thanking the teams at Old National Bank and First Financial Bank for their continued commitment and support.

This development showcases Hallador Energy's proactive approach to optimizing its debt structure to support its growth initiatives and enhance its liquidity, ultimately positioning the company for long-term success. The market has reacted to these announcements by moving the company's shares 4.01% to a price of $20.21. Check out the company's full 8-K submission here.

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