HALLADOR ENERGY COMPANY (NASDAQ:HNRG) Files An 8-K Entry into a Material Definitive Agreement

HALLADOR ENERGY COMPANY (NASDAQ:HNRG) Files An 8-K Entry into a Material Definitive Agreement
Item 1.01       Entry into a Material Definitive Agreement

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On Monday, September 30, 2019, we executed an amendment to our credit agreement with PNC, administrative agent for our lenders.  The primary purposes of the amendment are to extend the maturity by 16 months to September 2023 and to modify the pricing to reduce the interest rate by 0.50% over the remainder of the term.

The interest rate per the amendment ranges from LIBOR plus 2.25% to LIBOR plus 4.00%, depending on our leverage ratio. We expect the interest rate to be LIBOR plus 3.00% for the remainder of 2019.

The maximum leverage ratio (total funded debt / trailing 12 months adjusted EBITDA) is as follows:

The debt service coverage ratio  (trailing 12 months adjusted EBITDA / annual debt service) was not changed and requires a minimum of 1.25X through the maturity of the credit facility.

In addition, a maximum annual capex of $35 million is included.

A copy of the credit agreement will be filed as an exhibit to our Form 10-Q for the quarter ended September 30, 2019.

Item 9.01       Exhibits


EX-99.1 2 hnrg-20191002ex991e0ac9e.htm EX-99.1 Exh_99 Exhibit 99.1     Press Release     HALLADOR ENERGY EXTENDS TERM AND LOWERS INTEREST RATE ON 4-YEAR,…
To view the full exhibit click here


Hallador Energy Company is an oil and gas exploration company focused on developing coal reserves in the Illinois Basin. The Company, through its subsidiary, Sunrise Coal, LLC, is engaged in coal mining in the state of Indiana serving the electric power generation industry. Its projects include Carlisle Mine, Ace in the Hole Mine, Oaktown 1 Mine, Oaktown 2 Mine and Bulldog Mine. It develops over 10 million tons of coal annually and has customers in the mid-west and southeastern United States. It has over 40.6 million tons of the Indiana coal V seam. It also has over 69.3 million controlled tons in both Knox County, Indiana and Lawrence County, Illinois. Its Carlisle underground coal mine is located near the town of Carlisle, Indiana in Sullivan County. The Ace mine is located approximately 40 miles northeast of the Carlisle Mine. Its Bulldog Mine controls over 35.8 million tons of coal reserves.

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