Ramaco Resources Reports Successful Notes Offering Expansion

Author: Owen Jenkins Updated: 08-04-2025 04:12 PM

Ramaco Resources Expands Senior Notes Offering

Ramaco Resources, Inc. (NASDAQ: METC) is making waves in the financial sector with the recent exercise of an over-allotment option for its public offering of Senior Notes. This announcement marks a significant milestone for the company, reflecting its strong market position and investor confidence.

Details of the Senior Notes Offering

The company disclosed that underwriters exercised their over-allotment option, resulting in an additional $8 million in principal amount of 8.250% Senior Notes maturing in 2030 being issued. With this, the total amount raised from the offering reached a substantial $65 million, paving the way for various growth initiatives and financial strategies.

Interest and Maturity Details

The Senior Notes carry an 8.250% interest rate, paid quarterly on set dates beginning in late 2025. This structure is designed to provide stability and predictability for both the company and its investors. Ramaco has strategically planned the redemption terms, allowing for flexibility should market conditions change in the future.

Use of Proceeds

Ramaco intends to utilize the proceeds from this offering for several corporate purposes, including retiring outstanding 9.00% Senior Notes due in 2026, which will enhance the company's financial posture. Additional funds will contribute to the development of rare earth minerals, capital expenditures, and general working capital, positioning Ramaco for future growth in high-demand sectors.

Market Reception and Future Outlook

The successful exercise of the over-allotment option underscores robust investor interest in Ramaco’s operations and market strategy. The company's commitment to enhancing its production capabilities and exploring critical minerals signifies its proactive approach in adapting to market trends and demands.

Institutional Support

Ramaco's offering was supported by several financial institutions, ensuring a well-structured launch and ongoing management of the notes. This collaboration emphasizes the company's credibility within the market, fostering confidence among investors looking for solid opportunities in the resource sector.

About Ramaco Resources

As a significant player in the metallurgical coal space and a rising contributor of rare earth elements, Ramaco Resources, Inc. stands out as a forward-thinking company. With operations in strategic locations, the company remains focused on enhancing its production processes and expanding into new markets. Located in Lexington, Kentucky, Ramaco operates four active mining complexes, alongside a developing site in Wyoming slated for future production.

Frequently Asked Questions

What are the key details of the Senior Notes issued by Ramaco Resources?

The Senior Notes have an interest rate of 8.250% and a maturity date in 2030, with an option for early redemption under specific conditions.

How much capital did Ramaco Resources raise with the offering?

Ramaco Resources raised approximately $65 million from this offering after the over-allotment option was exercised.

What are the plans for the proceeds from the Senior Notes?

The proceeds will be used to redeem outstanding 2026 Senior Notes, develop rare earth projects, and fund capital expenditures.

Who were the underwriters for this offering?

Lucid Capital Markets, along with several other notable firms, acted as joint book-running managers for the offering.

Where is Ramaco Resources headquartered?

Ramaco Resources is headquartered in Lexington, Kentucky, with additional operational offices in Charleston, West Virginia, and Sheridan, Wyoming.

About The Author

Hi there I'm 38-year-old author and financial consultant Owen Jenkins. Having worked in the financial sector for more than ten years, I am well-versed in the subtleties and complexity that mold our financial environment. Following a degree in finance, I worked in a number of financial institutions honing my abilities in market analysis, financial planning, and investment strategies.

My love is teaching others about investing and personal finance. My goal in writing many books and articles has been to demystify financial ideas and give readers the information they need to make wise financial decisions. I write with a direct, useful style that emphasizes doable suggestions for daily living.

Along with writing, I lead webinars and seminars where I impart knowledge on how to successfully negotiate the financial world. I also write for financial journals and show up as a guest expert on financial news programs a lot. Whether they are new to investing or want to improve their approach, my mission is to enable people to take charge of their financial futures.

Beyond work, I like to hike, play the guitar, and spend time with my family. I think that balance is crucial and want to encourage people to strike a balance between their financial aspirations and their hobbies. I want to help people succeed and achieve financial security through my work, so having a good influence.

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