Ramaco Resources Plunges 15.95% After $57M Note Offering

On August 6, 2025, Ramaco Resources experienced a significant drop of 15.95% in pre-market trading, reflecting a notable shift in investor sentiment towards the company.

Ramaco Resources recently completed an offering of $57 million in 8.25% Senior Notes due 2030, with an additional $8 million in notes issued following the exercise of an over-allotment option. The proceeds from this offering were used to redeem all outstanding 9.00% Senior Notes due 2026, amounting to $34.5 million, and the remaining funds are allocated for general corporate purposes, including rare-earth development and capital expenditures.

The new notes carry a fixed coupon of 8.25% paid quarterly, with a maturity date of July 2030. The company has the option to redeem these notes at par value starting from July 2027. This financial maneuver is expected to reduce near-term refinancing pressure and lower annual interest costs on the refinanced portion, although it also increases the company's leverage.

The transaction is seen as a neutral credit event, with the potential for enhanced returns if the redeployed cash is effectively used in growth projects. However, the details of these projects have not been disclosed, leaving some uncertainty about the long-term impact on the company's financial health.