Ramaco Resources Completes $50 Million Senior Notes Offering

Ramaco Resources, Inc. recently finalized an offering of $50,000,000 in senior notes due 2029. The offering, completed on November 27, 2024, was structured as part of the company’s shelf Registration Statement on Form S-3. These 8.375% Senior Notes were issued through a second supplemental indenture, which enhanced the existing Base Indenture between Ramaco Resources and Wilmington Savings Fund Society, FSB.

The public offering price for the Notes was set at $25.00 per Note, totaling the principal amount. From the offering, the company anticipates net proceeds, after necessary deductions, of approximately $48 million. The funds received are designated for various corporate purposes, including investments, capital expenditures, and bolstering working capital.

Interest on the Notes is pegged at a rate of 8.375% per annum, payable quarterly beginning January 30, 2025, with a maturity date of November 30, 2029. The terms also stipulate that Ramaco Resources holds the right to redeem the Notes, either wholly or partially, from November 30, 2026, subject to specific notice periods to the Note holders.

In case of any default, the indenture outlines provisions where the Notes may be declared immediately due and payable by the Trustee or designated holders of a significant portion of the Notes. These Notes rank equally with the company’s present and future senior unsecured debt obligations.

Additionally, the company entered into a Structuring Fee Agreement with Lucid Capital Markets, LLC, the lead book-running manager, on the same day as the offering. This agreement mandates Ramaco Resources to pay Lucid a structured fee equivalent to 0.50% of the gross proceeds to cover services related to evaluating, analyzing, and structuring the Notes and the associated transactions.

While this release of the details of the transaction was part of a Form 8-K filing to the U.S. Securities and Exchange Commission (SEC) on November 27, 2024, it does not encompass a complete overview. Interested parties are encouraged to refer to the full text of the Indenture, Notes, and the Structuring Fee Agreement attached to the filing for further details.

The company also issued a press release on the same date, publicizing the successful conclusion of the offering. This announcement can be accessed as part of the exhibits in the Form 8-K filing made to the SEC.

Ramaco Resources’ completion of this Senior Notes offering is indicative of its strategic financial management and its commitment to capitalizing on opportunities for growth in its operational sectors.

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.