Hallador Petroleum subsidiary gets $165 million secured revolver

By Jennifer Chiou

New York, Oct. 18 - Hallador Petroleum Co. subsidiary Sunrise Coal, LLC entered into a $165 million senior secured revolving credit facility with PNC Bank, as administrative agent, according to an 8-K filed with the Securities and Exchange Commission.

The five-year facility is collateralized by substantially all of Sunrise's assets and Hallador is the guarantor.

Borrowings bear interest at Libor plus 200 basis points if the company's funded debt-to-EBITDA leverage ratio is less than 1.5x, Libor plus 250 bps if its is over 1.5x and less than 2x, and at Libor plus 300 bps if the ratio is over 2x.

The maximum leverage ratio is 2.75x, the filing stated.

There is an annual commitment fee is 50 bps, but this falls to 37.5 bps if the company borrows more that 33% of the facility.

The company said that it will draw on the facility for development of its new projects in Illinois and Indiana.

Denver-based Hallador is an oil and natural gas exploration company.

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