The company announced that it secured a $400 million financing arrangement managed by Oaktree Capital Management. Oaktreee will provide Molycorp with up to $400 million in secure financing through credit facilities and the sale and leaseback of some equipment at Molycorp's Mountain Pass facility.
News of the agreement comes as Molycorp reported a loss of -29 cents for the second quarter, below the Capital IQ Consensus Estimate of a loss of -28 cents a share. Revenue fell -14.5% from the year-ago quarter to $116.9 million. Analysts expected Molycorp to report revenue of $130.97 million for the quarter.
Must read: Warren Buffett's 25 Favorite Stocks
TheStreet Ratings team rates MOLYCORP INC as a Sell with a ratings score of D. TheStreet Ratings Team has this to say about their recommendation:
"We rate MOLYCORP INC (MCP) a SELL. This is driven by several 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, generally disappointing historical performance in the stock itself and generally high debt management risk."