Molycorp looks to raise some $414 million in offering
Rare-earth miner Molycorp will raise as much as $414 million through an offering of notes and common stock.
The interest rate set for the notes on Friday was 6 percent, while the stock was priced at $10 a share. The base amount of the offering would raise $360 million and sell 12 million shares, but go as high as $414 million and 13.8 million shares if underwriters Morgan Stanley & Co. see sufficient demand.
The proceeds will go to general operations and capital needs, including the renovation and expansion of the rare-earth mine at Mountain Pass, Calif., about 15 miles south of Primm.
Cash flow became an issue in the second quarter financial report, as falling revenues and net income raised the possibility that some work might have to be scaled back.
Shares of Molycorp finished Friday down $1.32, or 11.83 percent, to close at $9.84 on the New York Stock Exchange. The close is 9 cents above the all-time low.
Contact reporter Tim O'Reiley at toreiley@reviewjournal.com or 702-387-5290.
