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Molycorp Prices Offerings Of Convertible Senior Notes And Common Stock

Molycorp, Inc. (NYSE: MCP) (“Molycorp” or the “Company”) today announced the pricing of its previously announced public offering of $360 million aggregate principal amount (or up to an aggregate of $414 million aggregate principal amount if the underwriters of such offering exercise their over-allotment option in full) of its 6.00% Convertible Senior Notes due 2017 (the “Notes”) (the “Notes Offering”) and 12,000,000 shares of its common stock (the “Common Stock”) (or up to an aggregate of 13,800,000 shares of Common Stock if Morgan Stanley & Co. LLC (“Morgan Stanley”), the underwriter of such offering, exercises its option to purchase additional shares of Common Stock in full) at a price per share of $10.00 (the “Primary Shares Offering”) in separate registered public offerings. The Company expects to close the Notes Offering and the Primary Shares Offering on August 22, 2012, subject to satisfaction of customary closing conditions.

The Notes will be Molycorp’s senior unsecured obligations and will bear interest at a rate of 6.00% per annum, payable semi-annually in arrears on March 1 and September 1 of each year, commencing on March 1, 2013. The Notes will mature on September 1, 2017, unless earlier repurchased, redeemed or converted in accordance with their terms. The Notes will be convertible at any time prior to 5:00 p.m., New York City time, on the second scheduled trading day immediately preceding the maturity date into shares of Common Stock, cash, or a combination thereof, at Molycorp’s election. The conversion rate will initially be 83.3333 shares of Common Stock per $1,000 principal amount of Notes (equivalent to an initial conversion price of approximately $12.00 per share of Common Stock), subject to customary adjustments. Molycorp will have the right to redeem the Notes on or after September 1, 2015 if the last reported sale price of its Common Stock has been at least 130% of the conversion price then in effect for at least 20 trading days (whether or not consecutive), including the trading day immediately preceding the date on which Molycorp provides notice of redemption, during any 30 consecutive trading day period ending on, and including, the trading day immediately preceding the date on which Molycorp provides notice of redemption.

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