With the financings, Oaktree gets warrants for 24,477,395 shares
By Toni Weeks
San Luis Obispo, Calif., Sept. 11 – Molycorp, Inc. said it entered into a credit agreement for a $185 million term loan with administrative agent OCM ML YCo CTB Ltd., an affiliate of Oaktree Capital Management, LP.
Of the total amount, $50,167,000 was advanced at initial funding, and $134,833,000 is a delayed-draw term loan to be advanced under certain conditions.
In addition, indirect subsidiary Magnequench, Inc. entered into a credit agreement with OCM for a term loan facility of $75 million, of which $60 million was advanced at initial funding and $15 million may be advanced as a delayed-draw loan.
Both loans mature Sept. 11, 2019.
The financings will be secured by Molycorp and its subsidiaries that guarantee the company’s senior notes.
In connection with the financing, Molycorp will issue to Oaktree five-year warrants to purchase 24,477,395 shares. Of those, warrants for 18,358,019 shares will have an exercise price of $0.01, and warrants for 6,119,340 shares will have an exercise price of $2.04 per share.
The strike prices are a 99.35% discount and a 33.33% premium, respectively, to the closing share price of $1.53 on Sept. 10.
Molycorp is a Greenwood, Colo.-based rare earths metals exploration company.
| Issuer: | Molycorp, Inc.
|
| Issue: | Loans
|
| Amount: | $260 million
|
| Maturity: | Sept. 11, 2019
|
| Warrants: | For 24,477,395 shares
|
| Warrant strike prices: | $0.01 (for 75% of the warrants), $2.04 (for 25% of the warrants)
|
| Warrant expiration: | Five years
|
| Settlement date: | Sept. 11
|
| Stock symbol: | NYSE: MCP
|
| Stock price: | $1.53 at close Sept. 10
|
| Market capitalization: | $379.4 million
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
