BATTALION OIL CORP 8-K

What Happened
Battalion Oil Corporation (through its subsidiary Halcón Holdings, LLC) announced on June 30, 2026 that it entered into a Third Amended and Restated Senior Secured Credit Agreement with Fortress Credit Corp. (agent) and other lenders. The agreement re-evidences the company’s prior facility and provides a $162.5 million term loan funded on the closing date and an uncommitted, discretionary delayed-draw term loan facility of up to $175.0 million available for a limited period. The facility matures on December 31, 2029.

Key Details

• Amounts: $162.5M funded term loan; up to $175.0M delayed-draw facility (discretionary by lenders).
• Pricing & maturity: Matures December 31, 2029; interest = forward-looking 3‑month SOFR + 0.15% credit spread adjustment + 6.50% margin (ABR loans = base rate + 5.50%). The margin is fixed at 6.50% (replacing prior leverage-based pricing).
• Repayment & prepayment: Scheduled amortization begins Q2 2027 with periodic principal payments (1.25% per quarter through Mar 31, 2029; 7.50% for quarter ending Jun 30, 2029; 10.00% for quarter ending Sep 30, 2029). Prepayment premium: make-whole equal to 12 months’ interest for months 0–12 (2.00% for change-in-control or sale of substantially all assets), 1.00% for months 13–24, none thereafter.
• Security & covenants: Facility is guaranteed by certain subsidiaries and secured by substantially all assets and the equity of the borrower; financial covenants include Total Net Leverage Ratio (≤2.75x through Dec 31, 2026; ≤2.50x thereafter), Current Ratio (≥1.00x from quarter ending Sept 30, 2026), Asset Coverage Ratio (phased increases to ≥2.50x), and minimum Liquidity (greater of $10.0M and next 3 months’ scheduled principal & interest). Fortress Credit Corp. is the administrative agent.

Why It Matters
This amendment secures near‑term financing and flexibility for Battalion’s operations by locking in a $162.5M funded loan and potential additional capital via a delayed‑draw facility. The fixed margin and defined covenants set clear financial targets (leverage, liquidity, coverage) that the company must meet — important constraints for investors to monitor. The security package (subsidiary guarantees and liens on substantially all assets) prioritizes lender claims on company assets. Battalion also issued a press release on July 1, 2026 announcing the agreement.