Hallador Energy Co. (NASDAQ:HNRG) closed a $600 million senior secured term loan facility on September 15 to help fund its Turtle Creek natural gas power project in the Midwest ISO market, the company said.
Approximately $550 million of the facility was funded at closing, with an additional $50 million delayed draw commitment available for up to 12 months. A separate super-priority revolving credit facility of up to $75 million was also put in place, allowing a total financing package of up to $675 million. The 3-year term loan carries a 2-year extension option subject to lender approval.
The estimated total cost of the 460-megawatt Turtle Creek project is less than $800 million. About $120 million of the loan proceeds will be used to repay Hallador's existing $45 million term loan and $75 million revolving credit facility. Remaining proceeds will fund payment obligations under a turbine asset purchase agreement, transportation and refurbishment costs, construction of the project, and general corporate purposes.
As of June 30, 2026, Hallador had approximately $2.4 billion of contracted forward sales under multi-year agreements with utilities and other counterparties, the company said.
Turbine shipment activities remain on schedule, and equipment is expected to be sent to Siemens' facilities for refurbishment in the coming months. Hallador expects to execute a Generator Interconnection Agreement in the coming weeks, and negotiations for an engineering and construction agreement are in their final stages. The company does not expect a long-term power purchase agreement to be a condition for its final investment decision.
"Closing this loan is the largest single step in financing Turtle Creek," said Chairman and Chief Executive Officer Brent Bilsland. "We chose this structure because it carries more debt than traditional bank project financing would typically allow."
PEI Global Partners served as financial advisor to Hallador on the transaction, and Kennedy Lewis Investment Management provided the financing.
