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.
Get Our Expert Guide to Rare Earth Investing FREE!Download this FREE Special Report, Rare Earth News and Rare Earth Metals Prices: What you Need to Know.