Molycorp, Inc. (MCP) announced that it plans to offer and sell $300 million aggregate principal amount , or up to an aggregate of $345 million aggregate principal amount if the underwriters of such offering exercise their over-allotment option in full, of its Convertible Senior Notes due 2017 and $150 million of its common stock , or up to an aggregate of $172.5 million of Common Stock if Morgan Stanley & Co. LLC, the underwriter of such offering, exercises its option to purchase additional shares of Common Stock in full in separate registered public offerings.
The company said it intends to use the net proceeds received from the Notes Offering and the Primary Shares Offering to fund operating expenses, working capital, capital expenditures and any other cash requirements for the remainder of 2012 and the first six months of 2013, including without limitation, capital expenditures at its Mountain Pass facility and other capital projects, as well as other cash requirements, such as cash payments in August 2012 to certain holders of the 5% subordinated unsecured convertible debentures of Molycorp Canada, the Company's wholly-owned Canadian subsidiary.
The company said it intends to lend to Morgan Stanley Capital Services LLC or "MSCS", an affiliate of Morgan Stanley, under a share lending agreement it expects to enter into with MSCS, up to $138 million of Common Stock , which Borrowed Shares the Company intends to offer through Morgan Stanley in a registered public offering.
The company said it is entering into the share lending agreement to facilitate the Notes Offering. The company will not receive any proceeds from the Borrowed Shares Offering, but the company will receive a nominal lending fee from MSCS for the use of the Borrowed Shares, which the company intends to use for general corporate purposes.
For comments and feedback: editorial@rttnews.com