Thursday, September 11, 2014

Molycorp Announces Successful Closing of $400 Million Financing Arrangement $MCP

They really gave away the store to be able to borrow this new secured money!

"In connection with the financings, Molycorp issued to Oaktree warrants to purchase up to an aggregate of 24,477,395 shares of the Company's common stock. Warrants to purchase up to an aggregate of 18,358,019 shares of common stock have an exercise price of $0.01 per share, and warrants to purchase up to 6,119,340 shares of common stock have an exercise price of $2.04 per share."
The free shares are 7.5% of the company. That is $28 million in value today, just for the privilege of being able to borrow $250 million secured at 12%.

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