Molycorp, Inc. (NYSE:MCP) has entered into a commitment letter whereby it will secure a $400 million financing arrangement. Funds will be managed by Oaktree Capital Management, L.P..
As quoted in the press release:
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.