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United States : Molycorp Announces a Commitment for a $400 Million Financing Arrangement

August 8, 2014

Molycorp, Inc. ( 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.

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Source: TendersInfo (India)

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