NOTE

—

DEBT

The following table summarizes Ramaco’s outstanding debt as of

December 31:

(In thousands)	2018			2017
Term loan	$	9,589		$	-
Revolving Credit Facility		-			-
Debt issuance cost		(115	)		-
Total debt	$	9,474		$	-
Current portion of long-term debt		5,000			-
Long-term debt, net	$	4,474		$	-

Credit Facility

November 2, 2018

the Company (together with its subsidiaries, and collectively the “Borrower”) entered into a Credit and Security Agreement (the “Credit Facility”) with KeyBank National Association (“KeyBank”). The Credit Facility consists of a

$10.0

million term loan (the “Term Loan”) and up to

$30.0

million revolving line of credit, including

$1.0

million letter of credit availability (the “Revolving Credit Facility”). To secure the Credit Facility the Company pledged all personal property assets of Borrower, including, but

not

limited to accounts receivable, coal inventory, and certain surface mining equipment. Real property and improvements are excluded from the collateral package and are

not

encumbered in connection with the Credit Facility. The Company used the Credit Facility to repay the existing Equipment Note, Additional Equipment Note and the Ramaco Coal Note, and provide working capital. The Credit Facility has a maturity date of

November 2, 2021.

The Revolving Credit Facility interest rate is based on LIBOR +

2.35%

or Base Rate +

1.75

%. The Term Loan credit interest rate is based on LIBOR +

4.75%

or Base Rate +

3.75%.

Base Rate is the highest of (i) KeyBank’s prime rate, (ii) Federal Funds Effective Rate +

0.5%,

or (iii) LIBOR +

1%.

Both loans are initially base rate loans, but

may

be converted to LIBOR rate loans at certain times at the Company’s discretion.

The outstanding principal balance of the Term Loan is required to be repaid in monthly installments of approximately

$0.4

million until fully repaid. As of

December 31, 2018,

the outstanding principal balance was

$9.6

million and the carrying amount was

$9.5

million.

The Credit Facility contains usual and customary representations and warranties and usual and customary affirmative and negative covenants, including but

not

limited to, limitations on liens, additional indebtedness, investments, restricted payments, asset sales, mergers, affiliate transactions and other customary limitations, as well as financial covenants. As of

December 31, 2018,

the Company was in compliance with all covenants under the Credit Facility.

Notes payable

February 2018,

we borrowed

$6.0

million under a short-term note from an unrelated

third

-party lender in order to manage accounts receivable (the “Equipment Note”). The Equipment Note was secured by a portion of our mobile mining equipment. Interest accrued monthly at

8.5%

-day LIBOR plus

6.9%,

whichever is greater. The outstanding principal balance was due on

December 31, 2018

but

may

be prepaid without penalty at any time. The Equipment Note was repaid on

November 5, 2018

with proceeds from the Credit Facility discussed above.

May 2018,

we borrowed

$3.0

million from Ramaco Coal, LLC, a related party secured by certain inventory (the “Ramaco Coal Note”). Interest accrued monthly at

10.0%.

The outstanding principal balance was due on

December 15, 2018

but

may

be prepaid without penalty at any time. The Ramaco Coal Note was repaid on

November 5, 2018

with proceeds from the Credit Facility.

June 2018,

we borrowed an additional

$7.0

million under a short-term note from the same unrelated equipment lender in order to manage accounts receivable (the “Additional Equipment Note”). The Additional Equipment Note was also secured by the same mobile mining equipment as the Equipment Note. Interest accrued monthly at

8.5%

-day LIBOR plus

6.9%,

whichever was greater. The outstanding principal balance was due on

December 31, 2018

but

may

be prepaid without penalty at any time. The Additional Equipment Note was repaid on

November 5, 2018

with proceeds from the Credit Facility.

Long-term debt maturities

The future maturities of debt outstanding as of

December 31, 2018,

excluding debt issuance costs, are as follows:

(In thousands)
Years ending December 31:	2018
2019	$	5,000
2020		4,589
Total	$	9,589