---
schema_version: "secwatch.filing_event.v1"
accession: "0000950170-25-078490"
form_type: "8-K"
ticker: "SJT"
cik: "0000319655"
company_name: "SAN JUAN BASIN ROYALTY TRUST"
filed_at: "2025-05-29T23:59:59+00:00"
generated_at: "2026-05-20T06:58:54.364727+00:00"
event_type: "debt"
sentiment: "negative"
materiality_score: 0.65
calibrated_materiality_score: 0.65
confidence: "high"
source: SEC EDGAR
---

# San Juan Basin Royalty Trust enters $2M line of credit with Texas Bank; distributions suspended until repayment

## Summary
- Line of credit of $2M from Texas Bank, secured by all trust assets, to cover administrative expenses.
- Purpose: repay excess production costs from Hilcorp's two horizontal wells drilled in 2024 and replenish $2M reserve.
- Distributions will resume only after note principal, reserve, and excess costs are repaid.
- Interest at prime + 1% (floor 6.5%), monthly payments starting June 21, 2025; matures May 21, 2027.

## SEC filing metadata
- accession: 0000950170-25-078490
- form_type: 8-K
- ticker: SJT
- cik: 0000319655
- company_name: SAN JUAN BASIN ROYALTY TRUST
- filed_at: 2025-05-29T23:59:59+00:00
- event_type: debt
- sentiment: negative
- materiality_score: 0.65
- calibrated_materiality_score: 0.65
- confidence: high
- sec_items: 1.01, 2.03
- EDGAR index: https://www.sec.gov/Archives/edgar/data/319655/000095017025078490/0000950170-25-078490-index.htm
- EDGAR primary document: https://www.sec.gov/Archives/edgar/data/319655/000095017025078490/copy_of_sjt_may_2025_8-k.htm

## Machine-readable alternates
- HTML: https://secwatch.observer/filing/0000950170-25-078490
- JSON: https://secwatch.observer/filing/0000950170-25-078490.json
- Plain text: https://secwatch.observer/filing/0000950170-25-078490.txt

## Key facts
- Debt Financings
  SAN JUAN BASIN ROYALTY TRUST incurred revolving credit of $2,000,000 with Texas Bank at prime rate plus 1.00%, but no less than 6.50% maturing May 21, 2027.
  - Instrument: revolving credit
  - Principal: $2,000,000
  - Counterparty: Texas Bank
  - Rate: prime rate plus 1.00%, but no less than 6.50%
  - Maturity: May 21, 2027
  - Event: incurrence
  source text: The Note is a revolving line of credit. Advances may be requested and repaid from time to time until maturity on May 21, 2027, but may not exceed a total of $2,000,000. Interest only shall be due monthly beginning on June 21, 2025, at the prime rate plus 1.00%, but no less than 6.50%.
  evidence_url: https://www.sec.gov/Archives/edgar/data/319655/000095017025078490/0000950170-25-078490-index.htm

This AI-assisted summary is a reading aid. Review the linked SEC EDGAR filing before relying on any specific claim.