Battalion Oil Corp's subsidiary, Halcón Holdings, LLC, has entered into a Third Amended and Restated Senior Secured Credit Agreement, replacing its previous credit facility. The new agreement, administered by Fortress Credit Corp., provides a $162.5 million term loan, funded at closing, and an uncommitted, discretionary delayed draw term loan facility of up to $175.0 million.
Key Details
- Facility Structure: The agreement includes (i) a $162.5 million term loan funded on June 30, 2026, and (ii) an uncommitted delayed draw term loan facility for up to $175.0 million.
- Maturity & Interest Rate: The facility matures on December 31, 2029. Borrowings bear interest at SOFR plus a fixed applicable margin of 6.50%, which replaces the previous leverage-based margin of 7.75% to 8.50%.
- Prepayment Terms: Voluntary prepayments made within the first 12 months are subject to a make-whole amount equal to 12 months of interest. A 1.00% premium applies in months 13-24, and no premium thereafter.
- Financial Covenants: The agreement includes new financial covenants, including a Total Net Leverage Ratio not to exceed 2.75x through 2026 and 2.50x thereafter, a minimum Current Ratio of 1.00x, and a minimum Liquidity of $10.0 million or the next three months of debt service.