Molycorp to sell $650M in senior secured notes
GREENWOOD VILLAGE, Colo. (AP) — Molycorp Inc. will sell $650 million of senior secured notes in an offering to help pay for a proposed acquisition.
The notes will be senior secured debt and be guaranteed by certain Molycorp subsidiaries. The proceeds will be placed into escrow, pending the company's proposed $1.31 billion acquisition of Canadian rare earth processor Neo Material Technologies Inc.
Once the proceeds are released from escrow, the rare earths miner, based in Greenwood Village, Colo., said that it plans to use a significant portion of them to help fund the acquisition. Any remaining proceeds will be used for general corporate purposes, the company said.
Molycorp shares rose 56 cents Monday, or 2.2 percent, to $25.49 in morning trading.