Friday, August 17, 2012

Molycorp prices debt, stock offer

Molycorp Inc. on Friday offered pricing and other details of the offer of convertible notes and stock it announced the day before.

The Greenwood Village-based rare-earths miner (NYSE: MCP) said it will sell at least $360 million in covertible senior notes due 2017 at 6 percent. The sale could rise to $414 million if underwriters exercise over-allotments, the company said.

It also said it will offer 12 million shares of common stock at $10 a share, or as much as 13.8 million through over-allotments.

(Shares closed at $11.16 Thursday and were lower in Friday trading; click here for a live quote from Yahoo Finance.)

Molycorp said it will use the proceeds for operating expenses, working capital and expenses through mid-2013.

It said it expects the notes and stock offers to close Aug. 22.

The move comes a few days after Standard & Poor?s Ratings Service lowered its corporate credit rating of Molycorp deeper into ?junk? territory, to CCC+ from B, and placed the company on ?CreditWatch with developing implications? status, citing liquidity issues.

Molycorp is in the middle of a $895 million redevelopment of its rare-earths mine in Mountain Pass, Calif.

It also acquired $230 million of 5 percent convertible notes when it bought Canada?s Neo Material Technologies Inc., a major rare-earths processor now known as Molycorp Canada, in a $1.3 billion cash-and-stock deal in June. Holders of those notes can put them back to the company this month under a change-of-control covenant.

?We believe that the company?s liquidity is likely to be inadequate to both complete the build-out of its key Mountain Pass mining operation and to address [its] convertible bonds,? S&P said of Molycorp earlier this week.

Mark Harden is print and digital content editor for the Denver Business Journal and writes for the "Broadway & 17th" blog. Email: mharden@bizjournals.com. Phone: 303-803-9227.

Follow Your Favorites with My News

My News is a way to create a customized news feed based on companies and industries that matter to you.

Source: http://feedproxy.google.com/~r/bizj_denver/~3/nPL9ZhrY-FA/molycorp-prices-debt-stock-offer.html

law abiding citizen golden globes 2012 miss america lana del rey saturday night live focus on the family packers vs giants giants score

No comments:

Post a Comment

Note: Only a member of this blog may post a comment.