Hallador Loosens Credit Covenants to Accommodate $350 Million Turbine Deal
Pre Acquisition Financing
Company Background
Hallador Energy is a vertically integrated independent power producer based in Terre Haute, Indiana, operating the one-gigawatt Merom Generating Station and the Sunrise Coal mining subsidiary. The company has been repositioning itself from a legacy coal producer into a broader power platform, signing over $1 billion in new long-term capacity agreements in early 2026 and committing in May 2026 to acquire approximately 460 megawatts of Siemens gas turbines from Australia's Energy World Corporation for $350 million — with additional transportation and refurbishment costs of roughly $100 million.
The first quarter of 2026 was operationally weak. Revenue fell to $101.8 million from $117.7 million a year earlier, driven by availability constraints at Merom, and the company posted a net loss of $9.3 million against net income of $10.0 million in Q1 2025. Adjusted EBITDA came in at $5.5 million, down from $19.3 million in the prior-year period. That said, at March 31, 2026, the company carried no outstanding bank debt and reported total liquidity of $97.5 million following the March refinancing.
Full-year 2025 results were considerably stronger: revenue rose 16% to $469.5 million and net income reached $41.9 million, with adjusted EBITDA tripling to $56.0 million. The company also raised approximately $53.6 million in net proceeds from a public equity offering that closed January 15, 2026.
What Was Disclosed
On June 25, 2026, Hallador entered into a Second Amendment to its Credit Agreement with Texas Capital Bank — a facility that had only been established on March 5, 2026. The amendment revises financial maintenance covenants upward across the board.