Friday, June 10, 2011

UPDATED: Molycorp Secondary Offering Declared Effective, 11.5 Million Shares Find a New Home at $51.00 (MCP)

Update: "Molycorp Final Prospectus and Some Thoughts on the Insiders Selling (MCP)"
Original post:
The stock is up 13 cents from yesterday's close, at $51.42.
The stock is a buy.
From the company:
Molycorp Announces Pricing of Secondary Offering of 10,000,000 Shares of Common StockGREENWOOD VILLAGE, Colo., Jun 09, 2011 (BUSINESS WIRE) -- Molycorp, Inc. (NYSE:MCP), the Western hemisphere's only producer of rare earth oxides, today announced that its selling stockholders priced a public offering of 10,000,000 shares of Molycorp's common stock (the "Common Stock") at a price per share of $51.00. The selling stockholders have granted the underwriters an option to purchase up to an additional 1,500,000 shares of Common Stock. The Common Stock offering is expected to close on June 15, 2011, subject to customary closing conditions.

Morgan Stanley & Co. LLC and J.P. Morgan Securities LLC are acting as joint book-running managers for the offering. The offering is being made only by means of a prospectus. When available, copies of the prospectus relating to the offering may be obtained from Morgan Stanley & Co. LLC, Attention: Prospectus Department, 180 Varick Street, Second Floor, New York, NY 10014 (email address: or J.P. Morgan Securities LLC; c/o Broadridge Financial Solutions, 1155 Long Island Avenue, Edgewood, New York 11717.... 

And via the Financial Post, terms on the debt offering:

Molycorp Announces Pricing of Offering of Convertible Senior Notes Due 2016

Molycorp, Inc. (NYSE: MCP), the Western Hemisphere's only producer of rare earth oxides, today announced that it has priced a $200 million aggregate principal amount offering of its 3.25% Convertible Senior Notes due 2016 (the “Notes”) in an offering exempt from the registration requirements of the Securities Act of 1933. The Notes are being offered only to qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933. In addition, Molycorp has granted the initial purchasers of the Notes an option to purchase an additional $30 million aggregate principal amount of the Notes. The closing of the Notes offering is expected to occur on or about June 15, 2011, subject to satisfaction of customary closing conditions.

The Notes will be Molycorp’s senior unsecured obligations and will bear interest at a rate of 3.25% per annum, payable semi-annually in arrears on June 15 and December 15 of each year, commencing on December 15, 2011. The Notes will be convertible at any time into shares of Molycorp’s common stock, cash, or a combination thereof, at Molycorp’s election. The conversion rate will initially be 14.0056 shares of Molycorp common stock per $1,000 principal amount of notes (equivalent to an initial conversion price of approximately $71.40 per share of Molycorp’s common stock), subject to customary adjustments. The Notes will mature on June 15, 2016, unless earlier repurchased or converted in accordance with their terms prior to that date. Molycorp will not have the right to redeem the Notes prior to maturity....