Ramaco Resources Announces Public Offering of Senior Notes due 2029

Ramaco Resources, Inc. recently disclosed plans for a public offering in a Form 8-K filing submitted to the Securities and Exchange Commission. The company revealed that on November 21, 2024, it initiated a public offering termed the “Notes Offering,” involving 8.375% Senior Notes due 2029 priced at $25.00 per Note, totaling $50 million. This offering marks a strategic move for the company, aiming to benefit from the net proceeds generated from the transaction.

Ramaco Resources intends to utilize the funds obtained from the Notes Offering for general corporate objectives, including supporting future investments, expanding capital expenditures, and bolstering working capital. The company anticipates receiving approximately $48 million in net proceeds after accounting for discounts, commissions, and a structuring fee to be paid to the lead book-running manager, Lucid Capital Markets, LLC.

Further details within the filing indicate that the Underwriting Agreement involves the sale of $50 million aggregate principal amount of the Notes to the Underwriters. Additionally, the agreement provides the Underwriters a 30-day option to purchase up to an additional $7.5 million aggregate principal amount of Notes. The Notes Offering is slated to conclude on November 27, 2024, pending customary closing conditions.

In parallel with the Notes Offering, on the same day, Ramaco Resources entered into a Second Amendment Agreement to modify the existing Credit Agreement, effectively increasing the amount of “Permitted Additional Unsecured Debt” from $45 million to $75 million. This strategic maneuver aims to provide the company with enhanced financial flexibility moving forward.

The company also issued press releases on November 20 and November 21, 2024, respectively announcing the proposed Offering and detailing the pricing of the Offering. The press releases highlighted key information about the Notes, including their maturity date, interest rate, and the company’s intentions regarding the use of proceeds generated.

The market eagerly awaits the completion of the Notes Offering and is keen on observing the subsequent impacts on Ramaco Resources’ financial standing. As the company progresses with its strategic initiatives, there remains a keen interest in how these developments will influence its operational and financial trajectory.

This article was generated by an automated content engine and was reviewed by a human editor prior to publication. For additional information, read Ramaco Resources’s 8K filing here.

About Ramaco Resources

Ramaco Resources, Inc engages in the development, operation, and sale of metallurgical coal. Its development portfolio includes the Elk Creek project that covers an area of approximately 20,200 acres located in southern West Virginia; the Berwind property covering an area of approximately 62,500 acres situated on the border of West Virginia and Virginia; the Knox Creek property, which covers an area of approximately 64,050 acres is located in Virginia; the Maben property covering an area of approximately 28,000 acres situated in southwestern Pennsylvania southern West Virginia; and the Brook Mine property that covers an area of approximately 16,000 acres located in northeastern Wyoming.