Hallador Secures $600 Million Term Loan to Help Fund Turtle Creek Gas Project
On September 15, 2026, Hallador Energy and subsidiary Turtle Creek Gas Holdings closed a $600 million senior secured term loan with Kennedy Lewis Investment Management, with $550 million funded at closing. The company says the loan will fund turbine payments, development costs and construction of the 460-megawatt Turtle Creek gas project, which has an expected total cost of less than $800 million, but borrowings carry high interest rates and are secured by substantially all company and subsidiary assets.
Key points
- $600 million senior secured term loan, with $550 million funded at closing and a $50 million delayed draw available for 12 months
- Interest is 3.5% cash plus SOFR plus 4.50% payable in kind before commercial operation, then SOFR plus 8.00% in cash after operation begins
- Loan matures three years after closing, with a two-year extension option requiring a 3.0% extension fee
- Covenants include minimum unrestricted cash of $10 million starting with the test period ending December 31, 2026
The filing
Written by AI on Nov 9, 2026, 8:51 AM ET, from this filing only. Written later: this filing was briefed after the fact, when past filings were added to the site, so the brief may be read with hindsight; the filing itself is the record of what was known on September 17, 2026.
Briefs are written by AI from the filing text and can contain mistakes — open the filing before acting on anything. Impact (1-5) and tone are the AI's reading of the filing for shareholders, not a price forecast. Not investment advice.