#USA #Senior Notes #Ramaco Resources #METC #Lexington

Ramaco Resources Completes $50 Million Senior Unsecured Notes Offering

On November 27, 2024, Ramaco Resources, Inc. (NASDAQ: METC, METCB, METCL) announced the successful closing of its public offering of senior unsecured notes worth approximately $50 million. This marks an important milestone for the company as it positions itself for future growth and expansions in its operations.

The offering features notes that are set to mature on November 30, 2029. These notes will accrue interest at an annual rate of 8.375%, which will be paid in four installments each year—on January 30, April 30, July 30, and October 30—starting from January 30, 2025. Notably, Ramaco Resources retains the option to redeem the notes entirely or partially starting from November 30, 2026, at a price equal to the principal plus any accrued interest.

In addition, the company has taken steps to protect investor interests, allowing for the redemption of the notes under certain change of control events, further enhancing security for the potential investors. The notes received a 'BBB' rating from Egan-Jones Ratings Company, an independent agency that evaluates creditworthiness.

The proceeds from this offering will be utilized for multiple corporate purposes such as funding future investments, capital expenditures, and bolstering working capital. In a strategic move, Ramaco Resources has also provided the underwriters with a 30-day option to purchase an additional $7.5 million worth of notes, expanding the financial flexibility and potential for increased capital.

The notes were issued in minimum denominations of $25, allowing smaller investors to participate. There are plans to list these notes on the Nasdaq Global Select Market under the symbol METCZ, with trading expected to commence shortly, pending regulatory approval.

Lucid Capital Markets, LLC took the helm as the lead bookrunner for this offering, with other firms such as B. Riley Securities, Inc. and Janney Montgomery Scott LLC acting as joint book-running managers. Legal counsel was provided by ArentFox Schiff LLP for Ramaco Resources and Hunton Andrews Kurth LLP for the underwriters, ensuring that all procedural and regulatory guidelines were adhered to throughout the process.

About Ramaco Resources

Ramaco Resources is known for its commitment to operating and developing high-quality, low-cost metallurgical coal in regions like southern West Virginia and southwestern Virginia. Moreover, it is advancing its initiatives in the production of rare earth and critical minerals in Wyoming. The company’s headquarters are located in Lexington, Kentucky, with its crucial operational centers situated in Charleston, West Virginia, and Sheridan, Wyoming.

Currently, Ramaco runs four active metallurgical coal mining complexes in Central Appalachia and is undergoing the early stages of production at a rare earth and coal mine near Sheridan, Wyoming. This strategic focus on diverse mining operations aimed at high-demand minerals positions Ramaco well within the industry.

For any potential investors or interested parties seeking further information, Ramaco Resources encourages you to reach out to their investor relations through their main contact number at (859) 244-7455.

As with any investment, it is essential to review the cautionary statements related to forward-looking statements, which highlight potential risks and uncertainties that could impact actual results. Stakeholders should closely monitor developments within the company and the broader market conditions as Ramaco pursues its ambitious growth strategies.