GREENWOOD VILLAGE, Colo. (August 6, 2014) --
Molycorp, Inc. (NYSE: MCP) ("Molycorp" or the "Company") today
announced that it has entered into a commitment letter to secure a
$400 million financing arrangement with funds managed by Oaktree
Capital Management, L.P. ("Oaktree"). Under the arrangement,
Oaktree will provide Molycorp and certain of the Company's
subsidiaries up to $400 million in secured financing through credit
facilities and the sale and leaseback of certain equipment at the
Company's Mountain Pass facility (the "Financings"). $250
million of the Financings will be available to be borrowed at the
closing of the Financings, with the remaining $150 million
available until April 30, 2016 if Molycorp satisfies certain
financial and operational conditions.
The Financings will be secured by certain Molycorp
assets and certain assets of the Company's subsidiaries, will also
be guaranteed by most of the Company's subsidiaries, and will
mature in five years, subject to certain springing maturity dates
dependent on our repayment of certain outstanding debt, beginning
with April 30, 2016. The closing of the Financings is subject
to the satisfaction of certain customary closing conditions.
In connection with the Financings, Molycorp will
issue to Oaktree warrants for shares of the Company's common stock
equal to 10% of the Company's outstanding common stock as of the
closing of the Financings.
Moelis & Company LLC acted as the Company's
financial advisor for the Financings.
# # #
Source: Molycorp, Inc. ($MCP)
For more information:
Jim Sims, +1 (303) 843-8062
Vice President, Corporate Communications
Jim.Sims@Molycorp.com
Brian Blackman, +1 (303) 843-8067
Vice President, Investor Relations
Brian.Blackman@Molycorp.com
About Oaktree
Oaktree is a leader among global investment
managers specializing in alternative investments, with $91.1
billion in assets under management as of June 30, 2014. The firm
emphasizes an opportunistic, value-oriented and risk controlled
approach to investments. Headquartered in Los Angeles, the firm has
over 850 employees and offices in 16 cities worldwide. For
additional information, please visit Oaktree's website at
www.oaktreecapital.com.
About
Molycorp, Inc.
Molycorp is the only advanced material
manufacturer in the world that both controls a world-class rare
earth resource and can produce high-purity, custom engineered rare
earth products to meet increasingly demanding customer
specifications. With 26 locations across 11 countries, the Company
produces a wide variety of specialized products from 13 different
rare earths (lights and heavies), the transition metal yttrium, and
five rare metals (gallium, indium, rhenium, tantalum and
niobium). The Company produces rare earth magnetic materials
through its Molycorp Magnequench subsidiary, including
neodymium-iron-boron (NdFeB) magnet powders, used to manufacture
bonded NdFeB permanent rare earth magnets. Through its joint
venture with Daido Steel and the Mitsubishi Corporation, Molycorp
manufactures next-generation, sintered NdFeB permanent rare earth
magnets. The Company also markets and sells a line of rare
earth-based water treatment products. For more information please
visit www.molycorp.com.
Safe
Harbor Statement Regarding Forward-Looking
Statements
This release contains forward-looking statements
that represent Molycorp's beliefs, projections and predictions
about future events or Molycorp's future performance.
Forward-looking statements can be identified by terminology such as
"may," "will," "would," "could," "should," "expect," "intend,"
"plan," "anticipate," "believe," "estimate," "predict,"
"potential," "continue" or the negative of these terms or other
similar expressions or phrases. These forward-looking statements
are necessarily subjective and involve known and unknown risks,
uncertainties and other important factors that could cause
Molycorp's actual results, performance or achievements or industry
results to differ materially from any future results, performance
or achievement described in or implied by such statements.
Factors that may cause actual results to differ
materially from expected results described in forward-looking
statements include, but are not limited to: the need to
secure additional capital to implement Molycorp's business plans,
and Molycorp's ability to successfully secure any such capital,
including the ability to successfully complete the Financings;
Molycorp's ability to optimize production at its Mountain Pass rare
earth mine and processing facility, which we refer to as the
Molycorp Mountain Pass facility, and the ability to develop
internal and external demand for REO and other downstream products,
including the ability to operate at commercial production rates and
competitive cash production costs, in each case within the
projected time frame; the success of Molycorp's cost mitigation
efforts in connection with the optimization of the Molycorp
Mountain Pass facility, which, if unsuccessful, might cause its
costs to exceed budget; the final costs of Molycorp's planned
capital projects, which may differ from estimated costs; Molycorp's
ability to achieve fully the strategic and financial objectives
related to the acquisition of Molycorp Canada, including the
acquisition's impact on Molycorp's financial condition and results
of operations; unexpected costs or liabilities that may arise from
the acquisition, ownership or operation of Molycorp Canada; risks
and uncertainties associated with intangible assets, including any
future goodwill impairment charges; market conditions, including
prices and demand for Molycorp's products; Molycorp's ability to
control its working capital needs; foreign exchange rate
fluctuations; the development and commercialization of new
products; unexpected actions of domestic and foreign governments;
various events which could disrupt operations, including natural
events and other risks; uncertainties associated with Molycorp's
reserve estimates and non-reserve deposit information, including
estimated mine life and annual production; uncertainties related to
feasibility studies that provide estimates of expected or
anticipated costs, expenditures and economic returns, REO prices,
production costs and other expenses for operations, which are
subject to fluctuation; uncertainties regarding global supply and
demand for rare earths materials; uncertainties regarding the
results of Molycorp's exploratory drilling programs; Molycorp's
ability to enter into additional definitive agreements with its
customers and its ability to maintain customer relationships;
Molycorp's sintered neodymium-iron-boron rare earth magnet joint
venture's ability to successfully manufacture magnets within its
expected timeframe; Molycorp's ability to successfully integrate
other acquired businesses; Molycorp's ability to maintain
appropriate relations with unions and employees; Molycorp's ability
to successfully implement its vertical integration strategy;
environmental laws, regulations and permits affecting Molycorp's
business, directly and indirectly, including, among others, those
relating to mine reclamation and restoration, climate change,
emissions to the air and water and human exposure to hazardous
substances used, released or disposed of by Molycorp; and
uncertainties associated with unanticipated geological conditions
related to mining; and the outcome of the current stockholder class
action litigation and derivative litigation, including any actions
taken by government agencies in connection therewith.
For more information regarding these and other
risks and uncertainties that Molycorp may face, see the section
entitled "Risk Factors" of the Company's Annual Report on Form 10-K
for the year ended December 31, 2013 and of the Company's Quarterly
Reports on Form 10-Q. Any forward-looking statement contained in
this release or the Annual Report on Form 10-K or the Quarterly
Reports on Form 10-Q reflects Molycorp's current views with respect
to future events and is subject to these and other risks,
uncertainties and assumptions relating to Molycorp's operations,
operating results, growth strategy and liquidity. You should not
place undue reliance on these forward-looking statements because
such statements speak only as to the date when made. Molycorp
assumes no obligation to publicly update or revise these
forward-looking statements for any reason, or to update the reasons
actual results could differ materially from those anticipated in
these forward-looking statements, even if new information becomes
available in the future, except as otherwise required by applicable
law.
This
announcement is distributed by NASDAQ OMX Corporate Solutions on
behalf of NASDAQ OMX Corporate Solutions clients.
The issuer of this announcement warrants that they are solely
responsible for the content, accuracy and originality of the
information contained therein.
Source: Molycorp, Inc. via Globenewswire
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