Ramaco Resources CAL NT 29 -- 8.375% Carry, Short-Dated, Low Duration

Prakhar Agarwal, CFA53 FollowersFollow5ShareSavePlay(12min)CommentsSummaryRamaco Resources, Inc. (METC) recently issued senior unsecured notes (METCZ) to raise approximately $50 million. The notes mature on November 30, 2029, thereby having fairly low exposure to durations.METCZ notes offer an 8.375% annual coupon, payable quarterly, and currently trade near par at $25.2, matching the coupon yield.METCZ is rated a buy at present. The strong interest yield, along with decent amount of liquidity to service debt interest and principal repayments, increases the appeal of the issue.The low exposure to duration provides an income-centric exposure with medium-term maturity for investors, instead of price-led fluctuations, thus providing more stable return expectations. Muhur/iStock via Getty Images Ramaco Resources, Inc. CAL NT 29 (METCZ) are senior unsecured notes of Ramaco Resources (METC), which were recently issued to raise ~$50 million (before underwriting expenses) for general corporate purposes, future investments & capex and working capital.This article was written byPrakhar Agarwal, CFA53 FollowersFollowI have been managing investments for over eight years in capital markets. By qualification I am a CFA Charter holder. I primarily look for discrepancies between the price and value of a security. With a focus on first-principal mindset, I try breaking down ideas into their core- most tangible parts, affecting the theses while deliberately avoiding the non-significant matter into crowding the analysis. If you like my ideas or frameworks, reach out via email/message for more granular and concentrated- portfolio level specific investment researches and ideas. I am at prakhar@shrihittruealphacapital.com.Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.