Ramaco Resources Strengthens Position with Over-Allotment Option Activation in Recent Notes Offering

Ramaco Resources Strengthens Financial Position with Successful Notes Offering

Ramaco Resources, Inc. (NASDAQ: METC, METCB, METCL, METCZ), a key player in the metallurgical coal sector, has recently shared pivotal news regarding its financial endeavors. On December 11, 2024, the company disclosed that its underwriters have successfully exercised an over-allotment option related to its public offering of 8.375% Senior Notes due 2029. This strategic move resulted in the issuance of an additional $7.5 million in principal amount of the notes, bringing the total to approximately $57.5 million.

Details of the Offering

The Senior Notes, which are scheduled to mature on November 30, 2029, are designed to bolster Ramaco's financial foundation while providing investors a solid return. They offer a fixed interest rate of 8.375% payable quarterly, beginning January 30, 2025. Notably, the company retains the option to redeem these notes post-November 30, 2026, either in total or under specified conditions, such as a change of control event.

The underwriting team for this offering was led by Lucid Capital Markets, LLC, complemented by several esteemed firms including B. Riley Securities, Janney Montgomery Scott, and Piper Sandler, showcasing the confidence the market has in Ramaco Resources.

Utilization of Proceeds

The funds acquired from this offering are earmarked for various corporate initiatives, such as facilitating future investments, financing capital expenditures, and enhancing working capital. As the company expands its operations, both in the coal and critical minerals sectors, these funds are expected to play a crucial role in achieving its growth targets.

Ramaco Resources: Company Overview

Headquartered in Lexington, Kentucky, Ramaco Resources specializes in the extraction and development of high-quality, low-cost metallurgical coal. The company boasts several active mining operations in Central Appalachia and is also making strides in rare earth mineral production in Wyoming. With operational offices strategically located across West Virginia and Wyoming, Ramaco is well-positioned to capitalize on both domestic and international market demands.

Reliable Ratings

The Senior Notes have been assigned a 'BBB' rating by Egan-Jones Ratings Company, demonstrating a solid investment-grade status. This rating not only instills confidence in potential investors but also reflects the strategic direction and operational stability of Ramaco Resources as it navigates the competitive mining landscape.

Conclusion

This recent announcement signifies a robust financial strategy from Ramaco Resources, reflecting its commitment to sustainable growth and investment in the future. As they continue to develop their projects and expand their operational footprint, stakeholders can anticipate further updates that highlight the company’s progress and contributions to the metallurgical coal and critical minerals markets.