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Hallador Energy closes $600M loan for Turtle Creek natural gas plant
Hallador Energy funded about $550 million immediately, and the 460-megawatt Turtle Creek project is targeted for commercial operation in the second half of 2028.
Hallador Energy has closed a $600 million senior secured term-loan facility to support its proposed Turtle Creek natural gas power plant, according to Yahoo Finance. The company said it funded about $550 million immediately, with an additional $50 million available through a conditional delayed draw over the next 12 months.
The financing is intended to advance the 460-megawatt plant, which has an estimated total cost below $800 million. About $120 million of the proceeds will refinance existing facilities, and management said the remaining funding and debt are central to the investment plan.
Hallador Energy said the capital will be used for equipment payments, transportation, refurbishment, and construction preparation. The company also pointed to existing infrastructure and generation equipment under contract as a way to reduce development uncertainty and potentially shorten timelines and costs.
According to the report, Hallador Energy has contracted future revenue of $1.8 billion from external customers as of June 30, extending commitments through 2040, with Turtle Creek targeting commercial operation in the second half of 2028. The article also notes management’s goal of completing financing with little to no equity dilution, while borrowing costs are described as substantial before commercial operation.
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