#United States #Senior Notes #Ramaco Resources #METC #Lexington, Kentucky

Ramaco Resources, Inc. Pricing of $300 Million Senior Convertible Notes

Ramaco Resources, Inc. has made headlines with its recent announcement concerning the pricing of a public offering amounting to $300 million in aggregate principal of 0% convertible senior notes. This noteworthy financial maneuver is set to settle on November 7, 2025, contingent on standard closing conditions. Notably, the offering strategically positions Ramaco to capitalize on several growth opportunities within the industry.

Purpose of the Offering

According to the company’s estimates, after accounting for underwriting discounts and commissions, the net proceeds from this offering are expected to reach approximately $290.9 million. Should the underwriters fully exercise their over-allotment option, this figure could rise to roughly $334.7 million. Ramaco has outlined specific plans for the use of these proceeds: $28.5 million is earmarked for capped call transactions, while the rest will support the development of rare earth elements and critical minerals, strategic growth opportunities, and general corporate expenses.

About the Notes

These notes will be senior, unsecured obligations that do not accrue regular interest, meaning their principal amount remains stable and does not appreciate. However, they can accrue special interest, payable semi-annually under certain conditions. Before August 1, 2031, noteholders can convert the notes only in specific situations and timeframes, adding an element of flexibility relevant to market movements. After this date, they can convert at any point until just before maturity.

The initial conversion rate is set at 30.5460 shares of Class A common stock for every $1,000 principal amount, corresponding to an approximate conversion price of $32.74 per share. This price represents a 35% premium over the recent public offering price of $24.25 per share.

Redemption and Corporate Changes

The company retains the option to redeem the notes, in full or in part, starting from November 6, 2028. The redemption prices will include the principal plus any unpaid interest accrued up to the redemption date. In scenarios characterized as a