Ramaco Resources, Inc. ("Ramaco Resources" or the "Company") announced that the underwriters of its previously announced public offering (the "Offering") of 8.375% Senior Notes due 2029 (the "Notes") exercised their over-allotment option on December 9, 2024, resulting in the issuance of an additional $7,500,000 aggregate principal amount of the Notes. After giving effect to the exercise of the over-allotment option, $57,500,000 aggregate principal amount of the Notes were issued in the Offering.
The Notes will mature on November 30, 2029, unless redeemed prior to maturity. The Notes bear interest at a rate of 8.375% per year, payable in arrears on the 30th day of January, April, July and October of each year, commencing on January 30, 2025, and at maturity. The Company may redeem the Notes in whole or in part, at the Company's option, at any time on or after November 30, 2026, at a redemption price equal to 100% of the principal amount, plus accrued and unpaid interest to, but not including, the date of redemption. In addition, the Company may redeem the Notes, in whole, but not in part, at any time at the Company's option, at a redemption price equal to 100% of the principal amount plus accrued and unpaid interest to, but not including, the date of redemption, upon the occurrence of certain change of control events. The Notes are rated 'BBB' by Egan-Jones Ratings Company, an independent rating agency.
The gross proceeds to the Company from the Offering, after the exercise of the over-allotment option but before deducting commissions and expenses, were approximately $57.5 million. The Company intends to use the net proceeds from the Offering for general corporate purposes, including funding future investments, making capital expenditures and funding working capital. The Notes were issued in minimum denominations of $25.00 and integral multiples of $25.00 in excess thereof.
The Notes have been listed on the Nasdaq Global Select Market ("Nasdaq") under the symbol "METCZ."
Lucid Capital Markets, LLC acted as lead bookrunner for the Offering. B. Riley Securities, Inc., Janney Montgomery Scott LLC and Piper Sandler & Co. acted as joint book-running managers for the Offering. The Benchmark Company, LLC, InspereX LLC, TCBI Securities, Inc., doing business as Texas Capital Securities, and William Blair & Company, L.L.C. acted as lead managers for the Offering.
ArentFox Schiff LLP served as legal counsel to Ramaco Resources for the Offering. Hunton Andrews Kurth LLP served as legal counsel to the underwriters for the Offering.
