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Molycorp, Inc.: Molycorp (NYSE: MCP) Announces Commitment for a $400 Million Financing Arrangement

2014-08-06 22:02:00
Ticker Giełda ISIC Kraj Miasto
MCP XNYS U.S.A. Greenwood Village






GREENWOOD VILLAGE, Colo.  (August 6, 2014) -- Molycorp, Inc. (NYSE: MCP)

("Molycorp" or the "Company") today announced that it has entered into a

commitment letter to secure a $400 million financing arrangement with funds

managed by Oaktree Capital Management, L.P. ("Oaktree").  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.



The Financings will be secured by certain Molycorp assets and certain assets of

the Company's subsidiaries, will also be guaranteed by most of the Company's

subsidiaries, and will mature in five years, subject to certain springing

maturity dates dependent on our repayment of certain outstanding debt, beginning

with April 30, 2016.  The closing of the Financings is subject to the

satisfaction of certain customary closing conditions.



In connection with the Financings, Molycorp will issue to Oaktree warrants for

shares of the Company's common stock equal to 10% of the Company's outstanding

common stock as of the closing of the Financings.



Moelis & Company LLC acted as the Company's financial advisor for the

Financings.



#  #  #



Source:  Molycorp, Inc. ($MCP)



For more information:



Jim Sims, +1 (303) 843-8062

Vice President, Corporate Communications

Jim.Sims@Molycorp.com



Brian Blackman, +1 (303) 843-8067

Vice President, Investor Relations

Brian.Blackman@Molycorp.com





About Oaktree



Oaktree is a leader among global investment managers specializing in alternative

investments, with $91.1 billion in assets under management as of June 30, 2014.

The firm emphasizes an opportunistic, value-oriented and risk controlled

approach to investments. Headquartered in Los Angeles, the firm has over 850

employees and offices in 16 cities worldwide. For additional information, please

visit Oaktree's website at www.oaktreecapital.com.



About Molycorp, Inc.



Molycorp is the only advanced material manufacturer in the world that both

controls a world-class rare earth resource and can produce high-purity, custom

engineered rare earth products to meet increasingly demanding customer

specifications. With 26 locations across 11 countries, the Company produces a

wide variety of specialized products from 13 different rare earths (lights and

heavies), the transition metal yttrium, and five rare metals (gallium, indium,

rhenium, tantalum and niobium).  The Company produces rare earth magnetic

materials through its Molycorp Magnequench subsidiary, including neodymium-iron-

boron (NdFeB) magnet powders, used to manufacture bonded NdFeB permanent rare

earth magnets. Through its joint venture with Daido Steel and the Mitsubishi

Corporation, Molycorp manufactures next-generation, sintered NdFeB permanent

rare earth magnets. The Company also markets and sells a line of rare earth-

based water treatment products. For more information please visit

www.molycorp.com.



Safe Harbor Statement Regarding Forward-Looking Statements



This release contains forward-looking statements that represent Molycorp's

beliefs, projections and predictions about future events or Molycorp's future

performance. Forward-looking statements can be identified by terminology such as

"may," "will," "would," "could," "should," "expect," "intend," "plan,"

"anticipate," "believe," "estimate," "predict," "potential," "continue" or the

negative of these terms or other similar expressions or phrases. These forward-

looking statements are necessarily subjective and involve known and unknown

risks, uncertainties and other important factors that could cause Molycorp's

actual results, performance or achievements or industry results to differ

materially from any future results, performance or achievement described in or

implied by such statements.



Factors that may cause actual results to differ materially from expected results

described in forward-looking statements include, but are not limited to:  the

need to secure additional capital to implement Molycorp's business plans, and

Molycorp's ability to successfully secure any such capital, including the

ability to successfully complete the Financings; Molycorp's ability to optimize

production at its Mountain Pass rare earth mine and processing facility, which

we refer to as the Molycorp Mountain Pass facility, and the ability to develop

internal and external demand for REO and other downstream products, including

the ability to operate at commercial production rates and competitive cash

production costs, in each case within the projected time frame; the success of

Molycorp's cost mitigation efforts in connection with the optimization of the

Molycorp Mountain Pass facility, which, if unsuccessful, might cause its costs

to exceed budget; the final costs of Molycorp's planned capital projects, which

may differ from estimated costs; Molycorp's ability to achieve fully the

strategic and financial objectives related to the acquisition of Molycorp

Canada, including the acquisition's impact on Molycorp's financial condition and

results of operations; unexpected costs or liabilities that may arise from the

acquisition, ownership or operation of Molycorp Canada; risks and uncertainties

associated with intangible assets, including any future goodwill impairment

charges; market conditions, including prices and demand for Molycorp's products;

Molycorp's ability to control its working capital needs; foreign exchange rate

fluctuations; the development and commercialization of new products; unexpected

actions of domestic and foreign governments; various events which could disrupt

operations, including natural events and other risks; uncertainties associated

with Molycorp's reserve estimates and non-reserve deposit information, including

estimated mine life and annual production; uncertainties related to feasibility

studies that provide estimates of expected or anticipated costs, expenditures

and economic returns, REO prices, production costs and other expenses for

operations, which are subject to fluctuation; uncertainties regarding global

supply and demand for rare earths materials; uncertainties regarding the results

of Molycorp's exploratory drilling programs; Molycorp's ability to enter into

additional definitive agreements with its customers and its ability to maintain

customer relationships; Molycorp's sintered neodymium-iron-boron rare earth

magnet joint venture's ability to successfully manufacture magnets within its

expected timeframe; Molycorp's ability to successfully integrate other acquired

businesses; Molycorp's ability to maintain appropriate relations with unions and

employees; Molycorp's ability to successfully implement its vertical integration

strategy; environmental laws, regulations and permits affecting Molycorp's

business, directly and indirectly, including, among others, those relating to

mine reclamation and restoration, climate change, emissions to the air and water

and human exposure to hazardous substances used, released or disposed of by

Molycorp; and uncertainties associated with unanticipated geological conditions

related to mining; and the outcome of the current stockholder class action

litigation and derivative litigation, including any actions taken by government

agencies in connection therewith.



For more information regarding these and other risks and uncertainties that

Molycorp may face, see the section entitled "Risk Factors" of the Company's

Annual Report on Form 10-K for the year ended December 31, 2013 and of the

Company's Quarterly Reports on Form 10-Q. Any forward-looking statement

contained in this release or the Annual Report on Form 10-K or the Quarterly

Reports on Form 10-Q reflects Molycorp's current views with respect to future

events and is subject to these and other risks, uncertainties and assumptions

relating to Molycorp's operations, operating results, growth strategy and

liquidity. You should not place undue reliance on these forward-looking

statements because such statements speak only as to the date when made. Molycorp

assumes no obligation to publicly update or revise these forward-looking

statements for any reason, or to update the reasons actual results could differ

materially from those anticipated in these forward-looking statements, even if

new information becomes available in the future, except as otherwise required by

applicable law.









This announcement is distributed by GlobeNewswire on behalf of

GlobeNewswire clients. The owner of this announcement warrants that:

(i) the releases contained herein are protected by copyright and

other applicable laws; and

(ii) they are solely responsible for the content, accuracy and

originality of the information contained therein.



Source: Molycorp, Inc. via GlobeNewswire

[HUG#1847031]





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