HALLADOR ENERGY CO (HNRG) Form 8-K — Sep 17, 2026
Hallador Energy closed a $600 million senior secured term loan facility with Kennedy Lewis Investment Management on September 15, 2026, with $550 million funded at closing and a $50 million delayed draw available for 12 months. The company can also establish a super-priority $75 million revolving credit facility, creating a financing package of up to $675 million. Proceeds will primarily fund the 460-megawatt natural gas-fired Turtle Creek project, which carries an expected total cost of less than $800 million, including turbine purchases and refurbishment at Siemens' U.S. facilities.
Key figures
- Debt Amount
- 600000000
- Interest Rate
- Pre-COD: 3.5% per annum cash plus SOFR + 4.50% PIK; post-COD: SOFR + 8.00% cash; SOFR floor of 3.5%
- Maturity Date
- Three years from September 15, 2026 closing, with a two-year extension option
- Minimum moic
- 1.35x, increasing to 1.50x upon extension
- Extension fee
- 3.0% of outstanding principal
- Commitment fee
- 2.5%
- Merom capacity
- One gigawatt (1 GW)
- Funded at closing
- 550000000
- Delayed draw window
- 12 months after closing
- Existing debt repaid
- Approximately $120 million ($45 million delayed draw term loan and $75 million revolver with Texas Capital Bank)
- Turtle creek capacity
- 460 megawatts natural gas fired
- Excess cash flow sweep
- 100% commencing after COD
- Delayed draw commitment
- 50000000
- Total financing package
- 675000000
- Contracted forward sales
- 2400000000
- Max consolidated leverage
- 9.00x first tested period, 8.00x thereafter
- Turtle creek project cost
- Less than $800 million
- Revolving facility capacity
- 75000000
- Contracted forward sales as of
- June 30, 2026
- Min unrestricted cash covenant
- 10000000
- Min debt service coverage ratio
- 1.15x
AI analysis
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