Ramaco Resources issues additional $8 million in senior notes

Ramaco Resources Inc. (NASDAQ: METC) announced that underwriters exercised their over-allotment option on August 1, resulting in the issuance of an additional $8 million aggregate principal amount of 8.250% Senior Notes due 2030.

The exercise brought the total aggregate principal amount of notes issued in the offering to $65 million. The notes will mature on July 31, 2030, and bear interest at 8.250% per year, payable quarterly starting October 30, 2025.

The company may redeem the notes in whole or in part at its option beginning July 31, 2027, at 100% of the principal amount plus accrued interest. The notes received a 'BBB-' rating from Egan-Jones Ratings Company and are listed on the Nasdaq Global Select Market under the symbol "METCI."

Ramaco Resources received approximately $65 million in gross proceeds from the offering before deducting commissions and expenses. The company is using a portion of the net proceeds to redeem all outstanding 9.00% Senior Notes Due 2026, which had $34.5 million in aggregate principal amount outstanding prior to redemption.

The remaining proceeds will be used for general corporate purposes, including funding rare earth development acceleration, future investments, capital expenditures, and working capital, according to the company's statement.

Lucid Capital Markets LLC served as lead bookrunner for the offering, with B. Riley Securities Inc., Janney Montgomery Scott LLC, Piper Sandler & Co., and William Blair & Company LLC acting as joint book-running managers.

Ramaco Resources operates metallurgical coal mines in southern West Virginia and southwestern Virginia, and develops coal, rare earth and critical minerals in Wyoming.

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