Hallador Energy revises credit EBITDA definition, adds back up to $10 million in PPA exclusivity payments
HNRG: A Third Amendment to the Credit Agreement puts Hallador Energy Company (Nasdaq: HNRG) in a position to count up to $10 million in power purchase agreement exclusivity payments toward its EBITDA figure for the…
Key takeaways
- Hallador Energy's Third Amendment to its Credit Agreement lets it add up to $10 million in power purchase agreement exclusivity payments to its EBITDA for the quarter ended June 30, 2026.
- Texas Capital Bank, as administrative agent, and the lenders approved the revision on August 11.
- The add-back covers PPA exclusivity payments received by Hallador or its restricted subsidiaries, capped at an aggregate $10 million for the quarter.
- This is the third amendment to a Credit Agreement that originally dates to March 5, 2026, all within roughly five months.
- The 8-K, which attaches the amendment as Exhibit 10.1 and was filed under Item 2.03, was signed by Chief Accounting Officer Eric Van Deman on August 14.
HNRG: A Third Amendment to the Credit Agreement puts Hallador Energy Company (Nasdaq: HNRG) in a position to count up to $10 million in power purchase agreement exclusivity payments toward its EBITDA figure for the quarter ended June 30, 2026. Texas Capital Bank, as administrative agent, and the lenders party to the facility approved the revision on August 11. The 8-K attaches the full amendment as Exhibit 10.1 and was also filed under Item 2.03, covering creation of a direct financial obligation.
The underlying Credit Agreement dates to March 5, 2026. Three amendments in roughly five months. The add-back covers payments received by Hallador or its restricted subsidiaries in respect of PPA exclusivity agreements, with an aggregate ceiling of $10 million for the quarter.
EBITDA definitions in credit agreements feed directly into covenant calculations. The lender group's agreement to include these payments inside the metric is the operative fact. The $10 million cap is the number to hold.
What to watch: the quarterly filing where PPA-related cash flows and the restated EBITDA appear in reported results. Eric Van Deman, Hallador's Chief Accounting Officer, signed the 8-K on August 14.