NEW YORK (TheStreet) --Apollo Global Management LLC (APO) is adding bonds of Molycorp Inc. (MCP) to its holdings in order to have control of the rare-earth mining company in the event it looks to restructure its $1.5 billion debt, Bloomberg reports.
Apollo bought $8.5 million of Molycorp's $230 million convertible notes, which are due in 2016. As of March 31 the investment firm, run by Leon Black, held a minimum of 22% of that securities class, Bloomberg added.
The firm thinks those holding Molycorp's convertible notes won't get a full recovery in the event of a default, and is looking to give those lenders control of a possible restructuring, and take over the company's equity.
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Shares of Apollo Global are lower by -2.88% to $25.98 on Wednesday morning.
Separately, TheStreet Ratings team rates APOLLO GLOBAL MANAGEMENT LLC as a Sell with a ratings score of D+. TheStreet Ratings Team has this to say about their recommendation:
"We rate APOLLO GLOBAL MANAGEMENT LLC (APO) a SELL. This is driven by multiple weaknesses, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its unimpressive growth in net income, weak operating cash flow and feeble growth in its earnings per share."