Ramaco Resources Closes Senior Unsecured Notes Offering Successfully

Ramaco Resources Successfully Completes Senior Unsecured Notes Offering

Ramaco Resources, Inc. (NASDAQ: METC, METCB, METCL) announced the successful closing of its public offering of senior unsecured notes. The offering raised approximately $50 million before expenses, marking a significant milestone for the company.

Details of the Notes

The senior unsecured notes, which are due in 2029, will mature on November 30, 2029, unless redeemed earlier. With an attractive interest rate set at 8.375% per year, the interest payments are scheduled to be made quarterly, starting January 30, 2025. This structure offers Ramaco Resources flexibility, as they can opt to redeem these notes after November 30, 2026, at their discretion.

Redemption Options

In cases of specific change of control events, the company holds the authority to redeem the notes entirely, which adds a layer of security for investors. The notes have been rated 'BBB' by the Egan-Jones Ratings Company, reflecting the company's solid financial standing.

Intended Use of Proceeds

The net proceeds from this offering will be allocated to various corporate purposes. This includes funding future investments, making capital improvements, and ensuring sufficient working capital. Furthermore, the company has issued underwriters a 30-day option to acquire an additional $7.5 million in notes, enhancing potential funding capabilities.

Listing on Nasdaq

Following the offering, Ramaco Resources is seeking to list these notes on the Nasdaq Global Select Market using the symbol "METCZ." This anticipated listing is expected to commence trading within 30 days after the initial issuance of the notes, opening new avenues for liquidity.

Underwriters and Legal Counsel

Lucid Capital Markets, LLC served as the lead bookrunner for this offering, with a team of reputable firms acting as managers. Key players included B. Riley Securities, Janney Montgomery Scott LLC, and Piper Sandler, contributing to a well-coordinated offering process. Legal counsel for Ramaco Resources was provided by ArentFox Schiff LLP, ensuring compliance and proper structuring throughout the process.

About Ramaco Resources

Ramaco Resources, Inc. prides itself on being a developer and operator of high-quality metallurgical coal. The company strategically operates in key regions, ensuring the production of low-cost coal products. They are also venturing into the production of rare earth and critical minerals, aligning with evolving market demands. The executive office is located in Lexington, Kentucky, while operational oversight occurs in Charleston, West Virginia, and Sheridan, Wyoming. Currently, Ramaco operates four active metallurgical coal mining complexes in Central Appalachia and is in the early stages of developing a rare earth mine near Sheridan.

Frequently Asked Questions

What are the main terms of the notes issued by Ramaco Resources?

The notes carry an interest rate of 8.375% and will mature on November 30, 2029. They can be redeemed from November 30, 2026, under specific conditions.

What will Ramaco Resources do with the proceeds from this offering?

The proceeds will be used for general corporate purposes, including future investments and capital expenditures.

When is trading expected to start for the new notes?

If approved, trading on the Nasdaq under the symbol "METCZ" is anticipated to begin within 30 days following issuance.

Who managed the notes offering for Ramaco Resources?

Lucid Capital Markets, LLC acted as the lead bookrunner, supported by several other financial firms as joint managers.

What is Ramaco Resources' business focus?

Ramaco Resources operates in metallurgical coal production and is also moving into rare earth and critical minerals, enhancing its portfolio in resource development.

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