During Thursday’s current trade, Molycorp, Inc. (NYSE:MCP)’s shares surged 5.08% to $0.99, as the company declared on Wednesday that it will supply Siemens AG (SIEGY) with rare earth materials to use in Siemens’ wind turbine generators for the next 10-years.
Terms of the deal were not revealed.
Molycorp will supply rare earth materials to Shin-Etsu Chemical Co. Ltd. which will produce the rare earth magnets Siemens plans to use in its wind turbines.
“Siemens officials noted that key factors in choosing Molycorp were Molycorp’s ability to provide greater global diversification and reliability to its supply chain, in addition to the environmental and process innovations Molycorp has built into its Mountain Pass rare earth facility. Among those innovations are the facility’s ability to recycle water, regenerate the chemical reagents needed in rare earth production, generate power from a high-efficiency natural gas cogeneration power plant, and dispose of mine tailings through an innovative paste tailings system,” the declaration said.
Molycorp, Inc. produces and sells rare earths and rare metal materials in the United States and internationally. The company’s Resources segment extracts rare earth minerals, counting light rare earth concentrates; rare earth oxides (REO), such as lanthanum, cerium, and neodymium-praseodymium; heavy rare earth concentrates, which comprise samarium, europium, gadolinium, terbium, dysprosium, and others; and SorbX and PhosFIX, a line of rare earth-based water treatment products.
During an early morning trade, North American Palladium Ltd. (NYSEMKT:PAL)’s shares declined -40.71% to $0.06.
North American Palladium, declared that, following discussions with Brookfield Capital Partners Ltd., the Company has reached an contract with Brookfield aimed at significantly reducing the Company’s debt and enhancing the Company’s liquidity.
The Company has retained CIBC World Markets Inc. to act as its financial advisor in connection with the Recapitalization and to conduct a planned review process to solicit interest in a sale of the Company. The Company has until June 30, 2015 to obtain a superior proposal to the Recapitalization, with closing to occur within a specified timeframe thereafter.
The Company has obtained covenant relief from its senior secured lenders in respect of certain financial and other covenants until August 15, 2015. Although the Company produced about 45,600 payable ounces of palladium in the first quarter of 2015, covenant relief was required as a result of a decline in palladium prices and weakening of the Canadian dollar, and lower production volumes in March combined with higher expenses, which influenced the minimum shareholders’ equity and leverage ratio covenants.
The Company has also reached an right away accessible US$25 million interim credit facility with Brookfield. NAP is ongoing normal business operations at its Lac des Iles mine and the Company’s obligations to employees, trade creditors, equipment leases and suppliers will not be affected by the Recapitalization.
North American Palladium Ltd. produces precious metals in Canada. It explores for palladium, platinum, gold, nickel, copper, and other metals. It primarily holds interest in the Lac des Iles mine comprising about 8,623 hectares of mineral claims and leases, located to the northwest of Thunder Bay, Ontario. The company was founded in 1968 and is headquartered in Toronto, Canada.
Finally, PARTY CITY HOLDCO INC. (NYSE:PRTY), gained 20.29% Thursday.
PARTY CITY, declared the pricing of its initial public offering of 21,875,000 shares of common stock at $17.00 per share. The Company’s shares commenced trading on the New York Stock Exchange on April 16, 2015 under the symbol “PRTY”.
The underwriters of the offering will have a 30-day option to purchase up to an additional 3,281,250 shares of common stock from the Company at the initial public offering price, less underwriting discounts and commissions. The Company intends to use the net proceeds of the offering primarily to repay outstanding indebtedness, counting all or a portion of the senior PIK toggle notes which mature on August 15, 2019.
Goldman, Sachs & Co., BofA Merrill Lynch, Credit Suisse and Morgan Stanley are acting as lead book-running managers and representatives of the underwriters in the offering. Barclays, Deutsche Bank Securities and J.P. Morgan are also acting as book-running managers for the offering. William Blair, Stephens Inc. and Telsey Advisory Group are acting as co-managers for the offering.
Party City Holdings Inc., through its auxiliaries, designs, manufactures, contracts for manufacture, and distributes party goods worldwide. The company operates in two segments, Wholesale and Retail. It offers a selection of decorated party goods with about 40,000 SKUs that comprise paper and plastic tableware, metallic and latex balloons, novelties, costumes and other garments, stationery, and gifts for everyday, themed, and seasonal events.
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