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SEC filingHallador Energy amended its credit agreement to relax financial leverage covenants, reflecting an improved risk profile from recent offtake agreements and supporting its Asset Purchase Agreement with Energy World Corporation.
On June 25, 2026, Hallador Energy entered into a Second Amendment to its existing Credit Agreement with Texas Capital Bank and other lenders. The amendment revises key financial maintenance covenants to provide more flexibility as the Company executes its strategic initiatives. Specifically, the total leverage ratio covenant increases from the prior 2.50x to 4.25x, effective for the quarter ending June 30, 2026 and thereafter. The senior secured leverage ratio is set at 3.00x for the next two quarters, then steps down to 2.75x for the following two quarters, and ultimately to 2.50x from June 30, 2027 onward. This progressive tightening reflects the Company’s improving risk profile, driven by the recent execution of offtake agreements. The amendment also supports Hallador’s obligations under the previously announced Asset Purchase Agreement (APA) with Energy World Corporation Ltd., indicating that the credit facility will back the acquisition-related commitments. No other terms of the credit facility were modified. This covenant relaxation provides Hallador with greater operational and financial flexibility during a period of strategic transformation.