Molycorp’s hearing on interim access to DIP loan continued to July 1

By Kali Hays

New York, June 26 – Molycorp. Inc.’s hearing on interim access to $44.44 million of a proposed $225 million debtor-in-possession loan has been continued to July 1, according to a Friday notice with the U.S. Bankruptcy Court for the District of Delaware.

As previously reported, the financing is being provided by some holders of its 10% senior secured notes.

Wilmington Trust, NA is the administrative and collateral agent.

The facility will be issued with a 10% original issue discount and an additional original issue discount in the form of $4.5 million in additional funding consideration.

Interest will be 7% paid in cash and 8% paid in kind.

The financing will mature on the earliest of the effective date of a plan acceptable to the lenders, the date all loans become due and payable in full and Nov. 30 provided that, if the company uses its best efforts to have the plan take effect by Nov. 30, the CRO can extend the maturity date to Dec. 30.

Molycorp said it expects to draw $130 million in gross financing proceeds during its Chapter 11 case and have $72.5 million in gross proceeds available for exit financing.

Molycorp is a Greenwood Village, Colo., producer of materials from rare earth minerals that filed for bankruptcy on June 25. The Chapter 11 case number is 15-11357.

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