Sep. 19, 2014, 8:58 AM
- Molycorp (NYSE:MCP) +5.3% premarket after Oaktree Capital Management discloses a 9.1% stake, or nearly 24.5M shares, in the company.
- Last month, Oaktree agreed to provide MCP up to $400M in financing through credit facilities and the sale and leaseback of equipment at the company's Mountain Pass facility.
- MCP shares had slumped to a new 52-week low yesterday, and have plunged 76% YTD.
Aug. 25, 2014, 12:46 PM
Aug. 11, 2014, 11:59 AM
- Molycorp (MCP -4.2%) is downgraded to Sell from Hold with a $2 price target, cut from $3, at Euro Pacific, which cites continuous price decreases in special earth elements and lagging production efficiency in Mountain Pass.
- The firm notes how MCP has decreased its current account, burning through cash by nearly $80M/quarter trying to stay afloat with its price decreases and trouble in Mountain Pass.
- MCP's Q2 average sales prices decreased to 1,049 tons at $16.8/kg from 974 tons at $10.3/kg in the year-earlier Q2.
Aug. 7, 2014, 9:21 AM
Aug. 6, 2014, 5:41 PM
Aug. 6, 2014, 4:45 PM
- 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.
Aug. 6, 2014, 4:07 PM
Jul. 18, 2014, 12:45 PM
Jul. 10, 2014, 12:19 PM
- Molycorp (MCP -8.5%) extends its descent into all-time lows, a day after reports that Apollo Global Management is adding to its MCP bond holdings, which would position the investment firm to take control of MCP in the event the company sought to restructure its $1.5B in debt.
- Shares enjoyed a momentary bump after D.A. Davidson came out positive on the company, saying after meeting with management it remains optimistic that MCP's production rates are improving; it has a Buy rating on the stock with a $7 price target.
Jul. 9, 2014, 12:47 PM
Jul. 9, 2014, 10:36 AM
- Apollo Global Management (APO -3%) is adding to its holdings of Molycorp (MCP -8.2%) bonds, positioning the investment firm to control MCP in case it seeks to restructure its $1.5B of debt, Bloomberg reports.
- APO bought $8.5M of MCP’s $230M of 3.25% convertible notes due 2016 in the March quarter and has since added to that amount, according to the report; as of March 31, APO held at least 22% of that class of securities.
- APO is betting 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 report says.
- The attempt at a backdoor takeover puts added pressure on MCP to find a solution to its cash burn or risk being taken over by APO and other bond holders, raising the potential for a dilutive event within weeks.
Jul. 2, 2014, 12:56 PM
Jul. 2, 2014, 9:15 AM
Jul. 2, 2014, 8:17 AM
- Molycorp (MCP) -11.7% pre-market after a negative Seeking Alpha blog claims MCP could run out of cash by Q1 2015 without a capital raise.
- MCP needs to raise ~$260M in additional capital in order to sustain itself, according to blogger New York Shock Exchange, who values the company at $1.60/share vs. the current $2.57 price.
Jun. 19, 2014, 7:41 PM
- Molycorp (MCP) -4.1% AH as Moody's downgrades MCP's corporate family rating to Caa2 from Caa1 and affirms the B3 rating on the company's senior secured notes.
- The downgrade reflects continued weakness in the rare earths pricing environment, ongoing negative free cash flows, weak liquidity and high leverage, the ratings firm says.
Jun. 19, 2014, 4:56 PM
- "The downgrade reflects continued weakness in rare earths pricing environment, ongoing negative free cash flows, weak liquidity and high leverage," says Moody's cutting Molycorp's (MCP) CFR rating to Caa2 from Caa1. "The [Mountain Pass] project's cost overruns left the company with absolute debt levels that may be unsustainable in a current price environment."
- Shares -5.8% AH
MCPIQ vs. ETF Alternatives
Molycorp is the only advanced material manufacturer in the world that both controls a world-class rare earth resource and can produce high-purity, custom engineered rare earth products to meet increasingly demanding customer specifications. With 25 locations across 10 countries, the Company... More
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