Molycorp +13% as Oaktree commits for $400M financing arrangement

|By:, SA News Editor

Molycorp (NYSE:MCP) +12.8% premarket on news that Oaktree Capital Management has agreed to provide MCP and certain subsidiaries up to $400M in secured financing through credit facilities and the sale and leaseback of equipment at the company`s Mountain Pass facility.

As part of the agreement, MCP will issue Oaktree with share warrants equal to 10% of its stock.

The financing news overshadows MCP's Q2 earnings miss; Q2 production volume totaled 1,639 metric tons, up 48% Q/Q.