Molycorp to sell $345 million in stock and notes
Molycorp Inc. on Wednesday announced it would sell as much as $345 million in stock and in notes to help finance both general company operations and development of its mine in Mountain Pass, Calif.
The stock component would start at a base of $200 million, with an option to go as high as $230 million if the trio of Wall Street underwriters find enough demand among investors. The notes, due in 2018, would start at $100 million and go as high as $115 million.
No date was given for going to market to price the stock or notes. The stock closed Wednesday down 95 cents, or 10.8 percent, at $7.88 a share.
Molycorp revived the open-pit mine near the Nevada border at a time that demand for its rare-earth ores combined with tight export quotas set by China, which dominates the world markets, sent prices soaring. Since then, new supplies and weaker industrial demand for rare earths have caused prices to fall, pushing Molycorp into losses and prompting the company to delay some work at Mountain Pass.
Contact reporter Tim O'Reiley at
toreiley@reviewjournal.com or 702-387-5290.
