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Molycorp secures court approval of $130 million Oaktree DIP facility
By Caroline Salls
Pittsburgh, July 22 – Molycorp, Inc. received court approval of a debtor-in-possession financing package provided by Oaktree Capital Management LP, according to a Wednesday news release.
The company said the DIP facility, which includes $130 million in new net financing “represents significant improvement over the interim DIP approved by the court on July 2, 2015, including additional liquidity, reduced costs and additional time to develop a plan of reorganization that would be in the best interest of all parties.”
According to a revised credit agreement filed on July 16 with the U.S. Bankruptcy Court for the District of Delaware, the facility will mature on Jan. 31.
The DIP financing will bear interest at 7% to be paid in cash and 7% to be paid in kind.
Wilmington Trust, NA is the administrative agent.
On July 2, Molycorp, Inc. was granted interim court approval to access $22 million of DIP financing provided by an affiliate of Oaktree Capital Management. The company requested court approval to obtain up to $291.76 million in total DIP financing from Oaktree under the previous credit agreement.
As previously reported, the $291.76 million Oaktree facility was slated to consist of a $126.37 million fully committed and funded multi-draw term loan, including a 7% original issue discount.
The facility was also slated to include an additional $104.4 million available upon entry of the final order, including the 7% original issue discount, and a roll up of all outstanding obligations arising under or in connection with the Oaktree secured financings.
Interest on the facility approved on July 2 was 7% to be paid in cash and 7% to be paid in kind.
The Oaktree facility was slated to mature on Dec. 31.
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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