Loan & DebtJun 26, 2026, 05:11 PM
Hallador Energy Amends Credit Agreement, Revises Covenants
AI Summary
Hallador Energy Company entered into a Second Amendment to its Credit Agreement on June 25, 2026. This amendment revises certain financial maintenance covenants, including the total leverage ratio and senior secured leverage ratio. The changes reflect an improved risk profile for the company, driven by recent offtake agreements and in support of an Asset Purchase Agreement.
Key Highlights
- Total leverage ratio covenant revised to not exceed 4.25 to 1.0 from June 30, 2026.
- Senior secured leverage ratio covenant set at 3.00 to 1.0 for June 30, 2026, and September 30, 2026.
- Senior secured leverage ratio covenant set at 2.75 to 1.0 for December 31, 2026, and March 31, 2027.
- Senior secured leverage ratio covenant set at 2.50 to 1.0 from June 30, 2027.
- Amendment reflects improved risk profile due to recent offtake agreements.
- Supports obligations under an Asset Purchase Agreement with Energy World Corporation Ltd.
Price Impact
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