Tuesday, July 8, 2014

Apollo Thinks Molycorp Unsecureds Are Fulcrum $MCP

From Bloomberg:

"Apollo bought $8.5 million of Molycorp’s $230 million of 3.25 percent convertible notes due 2016 in the three months ended March 31 and added to that amount last quarter, said the people, who asked not to be named because the transactions weren’t public. As of March 31, Apollo held at least 22 percent of that class of securities, according to data compiled by Bloomberg.

Apollo believes holders of the convertible notes won’t receive a full recovery in a default, putting those lenders in control of a restructuring and in line to take over the company’s equity, the people said."
Good for the secureds, which are yielding 12%.

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