Hallador Energy closed a $120 million senior secured credit agreement maturing on March 5, 2029, consisting of a $75 million revolving credit facility and a $45 million delayed draw term loan facility. 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 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, 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,” Brent Bilsland, president and CEO of Hallador, said. “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.”
