Ramaco Resources amends, restates $175 million credit agreement

By William Gullotti

Buffalo, N.Y., Feb. 17 – Ramaco Resources, Inc. entered into a second amended and restated credit and security agreement with Keybank NA as administrative agent on Feb. 15, according to an 8-K filing with the Securities and Exchange Commission.

The upsized $175 million agreement, maturing Feb. 15, 2026, consists of a $125 million revolver and an included $50 million accordion feature.

Borrowings will bear interest at SOFR plus 200 basis points. There is also a 37.5 bps commitment fee on the unused portion of the revolver.

The amended agreement also contains a financial covenant that requires the borrowers to maintain a fixed charge coverage ratio, on a consolidated basis, of not less than 1.1 to 1.0 calculated as of the last day of each fiscal quarter.

The company drew $25 million from the revolver at closing to prepay more expensive debt and for general working capital.

In addition to serving as administrative agent, Keybank is also the collateral agent, lender, swingline lender and issuer.

Keybanc Capital Markets, Inc. is the lead arranger and bookrunner.

Cadence Bank is the syndication agent.

Ramaco is an operator and developer of metallurgical coal in southern West Virginia, southwestern Virginia and southwestern Pennsylvania. It is based in Lexington, Ky.

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