By Rebecca Melvin
New York, Feb. 11 - Molycorp Inc. priced an upsized $180 million of three-year mandatory convertible preferred stock at a liquidation preference price of $100 per share after the market close on Thursday to yield 5.5% with an initial conversion premium of 20%.
The registered deal, which was initially talked at $150 million in size, priced through the rich end of original talk on the dividend, which was 5.75% to 6.25%, and at the midpoint of 17.5% to 22.5% premium talk.
Molycorp also priced a concurrent secondary stock offering of 13.5 million common shares at $50.00 per share. The shares closed on the New York Stock Exchange Thursday at $51.15.
J.P. Morgan Securities LLC and Morgan Stanley & Co. Inc. were the joint bookrunners for the offerings.
Proceeds will be used for working capital and general corporate purposes. Previously Molycorp said it expected to use proceeds to double the production capacity of its Mountain Pass facility in California.
Molycorp has applied to list the mandatory convertible preferred stock on the NYSE under the symbol "MCP PrA."
The Greenwood Village, Colo.-based company is a producer of rare earth oxides.
| Issuer: | Molycorp Inc.
|
| Issue: | Convertible mandatory preferred stock
|
| Bookrunners: | J.P. Morgan Securities LLC, Morgan Stanley & Co. Inc.
|
| Amount: | $180 million, upsized from $150 million
|
| Maturity: | March 1, 2014
|
| Concurrent offering: | 13.5 million common shares at $50.00 per share
|
| Dividend: | 5.5%
|
| Price: | Par, $100 liquidation preference
|
| Yield: | 5.5%
|
| Conversion premium: | 20%
|
| Conversion price: | $60.00
|
| Maximum conversion rate: | 2.000 shares
|
| Minimum conversion rate: | 1.6667 shares
|
| Calls: | Non-callable
|
| Takeover protection: | Yes
|
| Price talk: | 5.75%-6.25%, up 17.5%-22.5%
|
| Pricing date: | Feb. 10
|
| Settlement date: | Feb. 16
|
| Distribution: | Registered
|
| Stock reference price: | $50.00
|
| Stock symbol: | NYSE: MCP
|
| Market capitalization: | $4.21 billion
|
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