Ramaco Resources Secures Increased Revolving Credit Agreement
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Ramaco Resources said its principal bank lender, KeyBank, has amended the company’s existing revolving credit agreement to increase the overall commitments under the facility to $200 million.
The facility also provides the company an ability to access an additional $75 million through an accordion feature, subject to its terms and conditions. The commitments under the previous facility were $125 million with a $50 million accordion feature. In addition, the maturity date was extended from 2026 to 2029.
“We are very pleased to have deepened our banking relationship with KeyBank and our syndicate partners. We sincerely appreciate their continued support of our company through the years since 2018. We view this new facility as a validation of that relationship and testimony to our conservative credit culture and structure,” said Randall Atkins, Ramaco’s chairman and chief executive officer.
“The increased facility now provides us not only extra financial capacity by its size but also meaningful financial flexibility by the extension of the term until 2029. As we look to grow on many fronts, we intend to continue our prudent financial and debt discipline as we move ahead. As before, our focus will be on increasing our metallurgical production profile, returning capital to our shareholders and advancing our critical mineral rare earth development,” added Atkins.
“KeyBank continues to be impressed with Ramaco management team’s ability to execute according to their growth plan. We are pleased to upsize our credit facility to further support that growth and look forward to our continued partnership,” said Chris Trimbach, senior vice president of KeyBank for Central Indiana.
Ramaco Resources is an operator and developer of high-quality, low-cost metallurgical coal in southern West Virginia and southwestern Virginia. Its executive offices are in Lexington, Kentucky, with operational offices in Charleston, West Virginia and Sheridan, Wyoming. The company currently has three active mining complexes in Central Appalachia and one mine not yet in production near Sheridan, Wyoming. Contiguous to the Wyoming mine it operates a research and pilot facility related to the production of advanced carbon products and materials from coal. In connection with these activities, it holds a body of roughly 50 intellectual property patents, pending applications, exclusive licensing agreements and various trademarks.
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