Past year: ▼ 56%(2.30c – 7.30c USD)
Each one in plain English, with the numbers worked through for a shareholder.
21 Nov 2014capital raising announcement● Neutral
On November 20, 2014, Molycorp agreed with one noteholder to swap $27M of its 6.00% 2017 notes and $11M of its 5.50% 2018 notes (total $38M principal) for common stock with an agreed value of $15,960,000, between 11,239,436 and 15,056,603 shares depending on a seven-day average price ending December 2, 2014. Accrued interest is paid in cash. This cuts convertible debt by $38M at the cost of issuing new shares, which dilutes existing holders.
11 Sept 2014capital raising announcement▼ BadMajor
On September 11, 2014, Molycorp signed a $185.0M term loan with an Oaktree affiliate (OCM): $50.167M funded at closing and $134.833M of delayed-draw loans available only if conditions are met (adjusted EBITDA of at least $20.0M for two consecutive quarters and Mountain Pass production of at least 4,000 metric tons for two consecutive quarters, by the quarter ending March 31, 2016). Its subsidiary Magnequench signed a separate $75.0M loan ($60.0M funded, $15.0M delayed-draw), and Molycorp Minerals sold Mountain Pass equipment (parts of the co-generation plant, chloralkali facility and water treatment plant) to OCM for $139.833M and leased it back for five years with a $1 purchase option. Interest is 7% cash plus 5% paid in kind through June 14, 2016, with large early-repayment premiums (43.8% in the first year), and the debt is secured pari passu with the 2020 notes. Oaktree also received warrants for up to 24,477,395 shares (text truncated before further detail), so existing shareholders face potential dilution. The loans can accelerate if the 2016 and 2017/2018 convertible notes are not repaid or escrowed by set dates (April 30, 2016 and March 31, 2017, to specified residual amoun
16 Aug 2012capital raising announcement● Neutral
On August 16, 2012 Molycorp agreed with Molymet and Resource Capital Fund V that, if Molycorp asks during the agreement's term, Molymet will buy $35 million and RCF $25 million of Molycorp common stock. It is a standby option for Molycorp, not a completed sale, so any issuance would dilute existing holders; the filing gives no price, term length or reason.
2 Feb 2012capital raising announcement▲ GoodMajor
Molycorp agreed to sell 12.5 million new shares to Molibdenos y Metales (Molymet) at $31.218 each (a 10% premium to a 20-day average price), a total of about $390 million by calculation from the filing. Molymet gets a board nominee and registration rights, and is limited to 19.9% ownership for two years. Closing still needs regulatory approvals; the share issuance dilutes existing holders.
What it means for a shareholder
12.5m new shares at $31.22 to raise about $390m. That's 13% dilution: every existing holder's slice gets 13% smaller. If you held $1,000 of shares (32 at the issue price), your slice goes from 0.0000382% to 0.0000332% of the company. To keep it you'd need 5 more shares - about $156 at the issue price.
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16 June 2011capital raising announcement● NeutralMajor
Molycorp completed a private offering of $230.0 million of 3.25% convertible senior notes due June 15, 2016, raising about $222.9 million net. The notes can be converted into cash, shares or a mix at about $71.40 per share, and the filing says the maximum initial share count is 3,221,288 (up to 4,509,794 with a make-whole change), so dilution is possible.
