METCZ: An 8.375% Senior Note IPO From Ramaco Resources
Source: SeekingAlpha
2025-01-09 12:03:32 ET
Summary
- Ramaco Resources, Inc.'s new 8.375% Senior Notes due 2029, METCZ, have increased the company's Debt-to-Equity ratio from 0.25 to 0.39.
- If Ramaco Resources's earnings are maintained, the company should have enough of a cushion to meet the increased debt payments.
- Stock dividend distributions may signal potential cash flow issues, raising concerns for potential debt investors about Ramaco Resources' financial stability.
- METCZ is relatively overvalued compared to its treasuries benchmark.
- Safer investments with similar durations and comparable yields make METCZ less appealing.
Co-authored by Relative Value.
Overview
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METCZ: An 8.375% Senior Note IPO From Ramaco Resources
Ramaco Resources Inc. 9.00% Senior Notes due 2026
NASDAQ: METCL
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