Ramaco Resources drops after unveiling $300 mln convertible debt offering

Ramaco Resources

04/11/2025 22:56

** Shares of Ramaco Resources METC.O down 10.1% in extended trading to $23.90 as it looks to raise capital

** Lexington, Kentucky-based METC announces $300 mln 6-yr convertible bonds (CBs) offering

** It intends to use net offering proceeds to fund development of its rare earth elements and critical minerals project in Wyoming, for strategic growth opportunities and general purposes

** METC also plans to use proceeds to fund capped calls, derivative transactions employed to mitigate potential dilution

** Alongside the CBs offering, bookrunners Goldman Sachs and Morgan Stanley intend to offer METC shares to facilitate delta hedging transactions

** As of Oct 27, METC had ~55.2 mln and ~10.8 mln outstanding Class A and Class B shares, respectively, the filing shows

** METC shares on Tues ended down 4.6% at $26.59, but up 165% YTD

** 6 of 7 analysts rate METC "strong buy" or "buy", 1 rates "hold", and their median PT is $43

(Lance Tupper is a Reuters market analyst. The views expressed are his own)

((lance.tupper@tr.com 1-646-279-6380))