By Rebecca Melvin
New York, June 10 - Molycorp Inc. priced $200 million of five-year convertible senior notes at par to yield 3.25% with an initial conversion premium of 40%, according to a syndicate source.
The Rule 144A offering priced at the midpoint of revised coupon talk, which was 3% to 3.5%, and at the rich end of revised initial conversion premium talk, which was 37.5% to 40%.
Upon launch, talk initially was 3.25% to 3.75% for the coupon and 27.5% to 32.5% for the premium.
Molycorp also priced a concurrent secondary offering of 10 million shares of common stock at $51.00 per share. There is a greenshoe on the share offering of 1.5 million shares.
J.P. Morgan Securities LLC and Morgan Stanley & Co. Inc. were the joint bookrunners of both the convertibles and stock.
The convertibles have a $30 million greenshoe.
The convertibles will be non-callable with no puts, and there is takeover and dividend protection. They have contingent conversion subject to 130% price hurdle.
Proceeds are earmarked to fund production capacity and expansion at the company's Mountain Pass, Calif., processing facility and for general corporate purposes.
Greenwood Village, Colo.-based Molycorp is a producer of rare earth oxides.
| Issuer: | Molycorp Inc.
|
| Issue: | Convertible senior notes
|
| Amount: | $200 million
|
| Greenshoe: | $30 million
|
| Maturity: | June 15, 2016
|
| Bookrunners: | J.P. Morgan Securities LLC, Morgan Stanley & Co. Inc.
|
| Concurrent offering: | 10 million shares of common stock at $51.00 per share
|
| Coupon: | 3.25%
|
| Price: | Par
|
| Yield: | 3.25%
|
| Conversion premium: | 40%
|
| Conversion price: | $71.40
|
| Conversion ratio: | 14.0056
|
| Calls: | Non-callable
|
| Puts: | No puts
|
| Takeover protection: | Yes
|
| Dividend protection: | Yes
|
| Contingent conversion: | Yes, at 130%
|
| Price talk: | 3%-3.5%, up 37.5%-40%, revised from 3.25%-3.75%, up 27.5%-32.5%
|
| Pricing date: | June 9
|
| Settlement date: | June 15
|
| Distribution: | Rule 144A
|
| Stock symbol: | NYSE: MCP
|
| Stock reference price: | $51.00
|
| Market capitalization: | $4.35 billion
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
