Business
MP Materials Announces Exchanges of a Portion of its 0.25% Green Convertible Senior Notes due 2026, Representing a Net Reduction of $25 Million of Outstanding Indebtedness
LAS VEGAS / Dec 09, 2024 / Business Wire / MP Materials Corp. (NYSE: MP) (“MP Materials” or the “Company”) today announced that on December 9, 2024, it entered
About this update from Mp Materials Corp.
[{"type":"text","content":"LAS VEGAS / Dec 09, 2024 / Business Wire / MP Materials Corp. (NYSE: MP) (“MP Materials” or the “Company”) today announced that on December 9, 2024, it entered into separate, privately negotiated exchange agreements (the “Exchange Agreements”) with a limited number of holders of its 0.25% green convertible senior notes due 2026 (the “2026 Convertible Notes”). Pursuant to the Exchange Agreements, the Company will exchange approximately $131.6 million aggregate principal amount of the 2026 Convertible Notes for approximately $106.6 million aggregate principal amount of the Company’s 3.00% convertible senior notes due 2030 (the “2030 Convertible Notes”). The newly issued 2030 Convertible Notes will be part of the same series as the Company’s existing 2030 Convertible Notes. The exchanges are expected to settle on or about December 16, 2024, subject to customary closing conditions. Upon completion of the exchanges, the aggregate principal amount of the 2026 Convertible Notes outstanding will be approximately $78.4 million, and the aggregate principal amount of the 2030 Convertible Notes outstanding will be approximately $854.1 million, representing a net reduction of $25 million of outstanding indebtedness. The Company expects that some or all of the holders of the 2026 Convertible Notes that are exchanged by the Company may purchase shares of the Company’s common stock in open market transactions or enter into or unwind various derivatives with respect to the Company’s common stock to unwind hedge positions that they have with respect to their investments in the 2026 Convertible Notes. The Company also expects that some or all holders of the newly issued 2030 Convertible Notes may sell shares of the Company’s common stock in open market transactions or enter into various derivatives with respect to the Company’s common stock to hedge their investments in the 2030 Convertible Notes. These transactions may cause or avoid an increase or decrease in the market price of the Company’s common stock, the effect of which may be material. In connection with the exchanges, the Company has been advised that J. Wood Capital Advisors LLC (“JWCA”), the Company’s financial advisor with respect to the exchanges, intends to purchase approximately 750,000 shares of the Company’s common stock concurrently with the exchanges in privately negotiated tra...