Shares of Warrior Met Coal Inc. /zigman2/quotes/208793752/composite HCC -2.58% surged 14% in premarket trade Thursday, after the metallurgical coal producer said it planned to offer debt to pay a special cash dividend of $600 million. The company said earlier that it proposes offering $350 million in senior secured notes due 2024 in a private offering. The company said it would use the proceeds from the offering and cash on hand of about $260 million to pay the special cash dividend to shareholders during 2017 to all of its stockholders on a pro rata basis. Based on 53.44 million shares outstanding as of July 31, the special dividend would be equal to $11.23 a share. S&P Global Ratings said Thursday it rated Warrior Met's proposed debt at junk-level rating of B-. The credit rating agency said the rating was characterized by Warrior's "narrow production base, low cash costs and volatile earnings owing to rpice an volume swings for metallurgical (met) coal." Warrior Met went public on April 13 at an IPO price of $19. Since then, it has closed as low as $15.49 on June 21 and as high as $27.29 on Aug. 31. The stock has has shot up 49% since its IPO day, while the S&P 500 /zigman2/quotes/210599714/realtime SPX +0.25% has gained 9.7%.