Hallador Energy Enters Material Definitive Agreement
Ticker: HNRG · Form: 8-K · Filed: Oct 3, 2024 · CIK: 788965
| Field | Detail |
|---|---|
| Company | Hallador Energy CO (HNRG) |
| Form Type | 8-K |
| Filed Date | Oct 3, 2024 |
| Risk Level | medium |
| Pages | 3 |
| Reading Time | 3 min |
| Key Dollar Amounts | $20 million, $10 million, $5 million |
| Sentiment | neutral |
Sentiment: neutral
Topics: material-definitive-agreement, financial-obligation
TL;DR
Hallador Energy just signed a big deal, could mean new debt or obligations.
AI Summary
On September 27, 2024, Hallador Energy Company entered into a Material Definitive Agreement related to a direct financial obligation. The company, formerly known as Hallador Petroleum Co., is based in Terre Haute, Indiana, and operates in the electric services sector.
Why It Matters
This filing indicates a significant financial commitment or obligation for Hallador Energy, which could impact its future financial health and operational capacity.
Risk Assessment
Risk Level: medium — Entering into material definitive agreements can introduce new financial obligations or risks that may not be immediately apparent.
Key Players & Entities
- Hallador Energy Company (company) — Registrant
- September 27, 2024 (date) — Date of earliest event reported
- Hallador Petroleum Co. (company) — Former company name
- Terre Haute, Indiana (location) — Company business address
FAQ
What specific type of material definitive agreement did Hallador Energy Company enter into?
The filing states the company entered into a Material Definitive Agreement and also notes the 'Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant', but does not specify the exact nature of the agreement in the provided text.
What is the primary business of Hallador Energy Company?
Hallador Energy Company is in the 'ELECTRIC SERVICES' sector, with Standard Industrial Classification code 4911.
When was the earliest event reported in this 8-K filing?
The earliest event reported was on September 27, 2024.
What were Hallador Energy Company's former names?
Hallador Energy Company was formerly known as Hallador Petroleum Co., Kimbark Oil & Gas Co /Co/, and Kimbark Inc.
Where is Hallador Energy Company headquartered?
Hallador Energy Company's business and mailing address is 1183 East Canvasback Drive, Terre Haute, Indiana, 47802.
Filing Stats: 784 words · 3 min read · ~3 pages · Grade level 13 · Accepted 2024-10-03 17:26:32
Key Financial Figures
- $20 million — ents under certain Eligible PPAs, up to $20 million in the aggregate; (ii) provide that the
- $10 million — add a minimum Liquidity requirement of $10 million until the date on which the compliance
- $5 million — imum Consolidated EBITDA requirement of $5 million for the fiscal quarters ending Septembe
Filing Documents
- hnrg20240930_8k.htm (8-K) — 25KB
- ex_728314.htm (EX-10.1) — 993KB
- hnrg20240702_8kimg001.jpg (GRAPHIC) — 2KB
- 0001437749-24-030649.txt ( ) — 1344KB
- hnrg-20240927.xsd (EX-101.SCH) — 3KB
- hnrg-20240927_def.xml (EX-101.DEF) — 11KB
- hnrg-20240927_lab.xml (EX-101.LAB) — 15KB
- hnrg-20240927_pre.xml (EX-101.PRE) — 11KB
- hnrg20240930_8k_htm.xml (XML) — 3KB
01 Entry into a Material Definitive Agreement
Item 1.01 Entry into a Material Definitive Agreement. The information set forth in Item 2.03 is incorporated by reference into this Item 1.01. Item 2.03 Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant. On September 27, 2024, Hallador Energy Company (the "Company") and certain of its subsidiaries executed an amendment to its credit agreement with PNC Bank, National Association ("PNC"), as administrative agent for the Lenders and the Lenders party thereto (such amendment, the "Credit Agreement Amendment" and the credit agreement as so amended, the "Fourth Amended and Restated Credit Agreement"); capitalized terms used but not defined herein are as defined in the Fourth Amended and Restated Credit Agreement. The Company entered into the Credit Agreement Amendment in view of its pursuit of additional forward power purchase agreements and as its negotiations continue to advance in response to the Company's data center targeted RFP launched earlier this year. The primary purpose of the Credit Agreement Amendment is to: (i) provide for additional flexibility for the Company and its subsidiaries to enter into certain types of forward power purchase agreements; provided , that the Company makes prepayments of outstanding term loans using, and upon the receipt of, any payments under certain Eligible PPAs, up to $20 million in the aggregate; (ii) provide that the Debt Service Coverage Ratio financial covenant (1.25 to 1.00) will only be tested from and after the fiscal quarter ended June 30, 2025; (iii) amend the existing maximum Leverage Ratio financial covenant to provide for a maximum Leverage Ratio of 5.50 to 1.00 for the fiscal quarter ended March 31, 2025 and a maximum Leverage Ratio of 2.25 to 1.00 for each fiscal quarter thereafter; (iv) provide for a maximum First Lien Leverage Ratio of 3.50 to 1.00 for the fiscal quarter ended March 31, 2025; (v) add a minimum Liquidity requirement of $10 million
01 Financial Statements and Exhibits
Item 9.01 Financial Statements and Exhibits. (d) Exhibits Number Description 10.1 - First Amendment to the Fourth Amended and Restated Credit Agreement dated as of September 27, 2024 104 - Cover Page Interactive Data File (embedded within the Inline XBRL document). 2
SIGNATURES
SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. Hallador Energy Company Date: October 3, 2024 By: /s/MARJORIE HARGRAVE Marjorie Hargrave Chief Financial Officer 3