Ramaco Resources Inc. announced the closing of its previously announced public offering of senior unsecured notes due 2026. Due to strong demand, the size of the offering has been increased from the previously announced $25 million aggregate principal amount to $30 million aggregate principal amount of notes. On July 12, 2021, the underwriters exercised their option to purchase an additional $4.5 million aggregate principal amount of notes.
The notes will mature on July 30, 2026, unless redeemed prior to maturity. The Notes will bear interest at a rate of 9% per year, payable in arrears on the 30th day of January, April, July and October of each year, commencing on July 30, 2021, 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 July 30, 2023 at a redemption price equal to 100% of the principal amount, plus accrued and unpaid interest to, but not including, the date of redemption.
Ramaco said it intends to use the net proceeds from the offering to fund future acquisitions and investments, making capital expenditures and funding working capital.