Ramaco Resources plans concurrent offerings of notes and borrowed stock

Ramaco Resources Inc. (NASDAQ: METC) announced plans for a $300 million offering of convertible senior notes due 2031, with an additional $45 million option for underwriters to cover over-allotments.

Goldman Sachs & Co. LLC and Morgan Stanley & Co. LLC will simultaneously conduct a separate offering of Ramaco's Class A common stock borrowed from third parties to facilitate hedging transactions by note purchasers. The stock offering will involve shares borrowed from non-affiliate third parties rather than newly issued shares.

The completion of both offerings is contingent on each other. Ramaco will not receive proceeds from the concurrent stock offering, according to the company's statement.

The number of shares in the concurrent offering will be determined at pricing and is expected not to exceed the initial short positions of hedging investors in the notes. The company has filed a shelf registration statement on Form S-3 with the Securities and Exchange Commission that became effective upon filing.

Ramaco operates metallurgical coal mines in southern West Virginia and southwestern Virginia, with development projects for coal, rare earth elements and critical minerals in Wyoming. The company maintains four active metallurgical coal mining complexes in Central Appalachia and one development rare earth and coal mine near Sheridan, Wyoming.

The offerings are subject to market and other conditions, with prospectus supplements to be filed with the SEC providing complete information about the transactions.

You May Also Be Interested In