Discovery fund discloses major Ramaco Resources (METC) equity and note stake
Rhea-AI Filing Summary
Ramaco Resources, Inc. insider filings show that Discovery Global Opportunity Master Fund, Ltd, together with Discovery Capital Management, LLC and Robert K. Citrone, reported a significant indirect ownership stake. The disclosed holdings include 5,511,360 shares of Class A common stock and 127,405 shares of Class B common stock.
The group also holds a 0% Convertible Senior Note due November 1, 2031, initially convertible at a rate of 30.5460 shares per $1,000 principal amount, equal to a $32.74 conversion price and 824,679 underlying Class A shares. In addition, they entered into a total return swap referencing 477,179 Class A shares.
Positive
- None.
Negative
- None.
Insider Trade Summary
4 transactions reported
Mixed
4 txns
Insider
DISCOVERY CAPITAL MANAGEMENT, LLC / CT, DISCOVERY GLOBAL OPPORTUNITY MASTER FUND, LTD
Role
10% Owner | 10% Owner
| Type | Security | Shares | Price | Value |
|---|---|---|---|---|
| holding | Equity Swap | -- | -- | -- |
| holding | Convertible Note | -- | -- | -- |
| holding | Class A Common Stock, $0.01 par value | -- | -- | -- |
| holding | Class B Common Stock, $0.01 par value | -- | -- | -- |
Holdings After Transaction:
Equity Swap — 477,179 shares (Indirect, See footnote);
Convertible Note — 824,679 shares (Indirect, See footnote);
Class A Common Stock, $0.01 par value — 5,511,360 shares (Indirect, See footnote);
Class B Common Stock, $0.01 par value — 127,405 shares (Indirect, See footnote)
Footnotes (1)
- The securities are held in the account of Discovery Global Opportunity Master Fund, Ltd. (the "Fund") and may be deemed to be beneficially owned by Discovery Capital Management, LLC ("Discovery"), as the investment manager of the Fund, and Robert K. Citrone, as the managing member of Discovery. The reporting persons entered into a total return swap with respect to 477,179 shares of Class A Common Stock, $0.01 par value. The reporting persons purchased a 0% Convertible Senior Note due November 1, 2031, with initial conversion rate of 30.5460 shares of Class A Common Stock, $0.01 par value per $1,000 principle amount of notes ($32.74 conversion price). Notes are convertible before August 1, 2031 only upon occurrence of certain specified events as defined in the indenture. After August 1, 2031, notes are convertible at holder's election until maturity. Issuer may settle conversions in cash, stock, or combination thereof at Issuer's election.
Key Figures
Class A holdings: 5,511,360 shares
Class B holdings: 127,405 shares
Convertible note underlying shares: 824,679 shares
+3 more
6 metrics
Class A holdings
5,511,360 shares
Indirect Class A common stock position reported on Form 3
Class B holdings
127,405 shares
Indirect Class B common stock position reported on Form 3
Convertible note underlying shares
824,679 shares
Underlying Class A shares for 0% Convertible Senior Note due November 1, 2031
Convertible note conversion price
$32.74 per share
Initial conversion price per Class A share
Initial conversion rate
30.5460 shares per $1,000
Class A shares per $1,000 principal amount of notes
Equity swap reference shares
477,179 shares
Total return swap on Class A common stock
Key Terms
total return swap, 0% Convertible Senior Note, initial conversion rate, conversion price, +1 more
5 terms
total return swap financial
"The reporting persons entered into a total return swap with respect to 477,179 shares of Class A Common Stock"
A total return swap is a private contract where one party pays the full economic performance of an asset (income plus price changes) to another party, while receiving a set payment such as a fixed rate or short-term interest in return. It matters to investors because it lets someone gain or shed exposure to an asset’s gains or losses without owning it, offering a way to borrow, hedge, or take leveraged positions while relying on the other party to make payments.
0% Convertible Senior Note financial
"The reporting persons purchased a 0% Convertible Senior Note due November 1, 2031"
initial conversion rate financial
"with initial conversion rate of 30.5460 shares of Class A Common Stock per $1,000 principal amount of notes"
The initial conversion rate is the percentage of investors or users who change from one status to another, such as from potential to active, after an initial interaction. It indicates how effectively a process or offering encourages people to take a desired action early on. For investors, a higher initial conversion rate suggests strong interest and a good chance of ongoing engagement or growth.
conversion price financial
"30.5460 shares of Class A Common Stock per $1,000 principle amount of notes ($32.74 conversion price)"
The conversion price is the fixed price at which a convertible security, like a bond or preferred stock, can be exchanged for shares of common stock. It acts like a set rate that determines how many shares an investor can receive if they choose to convert their investment. This helps investors understand the value and potential benefits of converting their securities into company shares.
beneficially owned financial
"may be deemed to be beneficially owned by Discovery Capital Management, LLC and Robert K. Citrone"
Beneficially owned describes securities or assets where a person has the economic rights and control—such as the right to receive dividends and to direct voting—even if legal title is held in another name. Think of it like having the keys and using a car that’s registered to someone else: you get the benefits and make decisions. Investors care because beneficial ownership reveals who truly controls value and voting power, affecting corporate decisions and takeover dynamics.
AI-generated analysis. How Rhea-AI works. Not financial advice.
FAQ
What insider position did Discovery report in Ramaco Resources (METC)?
Discovery-related entities reported an indirect stake in Ramaco Resources, including 5,511,360 Class A shares and 127,405 Class B shares. These securities are held in the account of Discovery Global Opportunity Master Fund, Ltd and may be deemed beneficially owned by Discovery Capital Management, LLC.
What convertible note exposure to METC did Discovery disclose?
Discovery-related entities disclosed a 0% Convertible Senior Note due November 1, 2031 with an initial conversion rate of 30.5460 Class A shares per $1,000 principal, equivalent to a $32.74 conversion price and 824,679 underlying Class A shares.
Did Discovery enter into any swap positions on Ramaco Resources (METC)?
Yes. The reporting persons entered into a total return swap referencing 477,179 shares of Ramaco Resources Class A common stock. This equity swap provides economic exposure to the shares without direct share ownership, as described in the Form 3 footnote.
Who is reported as potentially benefiting from the METC holdings on this Form 3?
The securities are held in the account of Discovery Global Opportunity Master Fund, Ltd and may be deemed beneficially owned by Discovery Capital Management, LLC, as the Fund’s investment manager, and Robert K. Citrone, as Discovery’s managing member.
Are the METC holdings in this Form 3 direct or indirect for the reporting persons?
All reported positions, including Class A and B shares, the convertible note, and the equity swap, are shown as indirect holdings. They are held in the Fund’s account, with Discovery Capital Management and Robert K. Citrone potentially deemed beneficial owners through their investment management roles.