JWCA advises MP Materials On its inaugural $275 million revolving credit facility

August 2025 | read press release

Transaction Background

MP Materials (the “Company”) successfully entered into a new $275 million revolving credit facility, following the Company’s recently announced transformational partnerships with the U.S. Department of Defense and Apple and previously announced “10X” commercial plant expansion

MP Materials’ objectives included:

  • Leverage existing relationships to efficiently and opportunistically put in place a revolving credit facility with minimal impact to Company

  • Eliminate remainder of outstanding bridge commitment ($1bn originally) before maturity

  • Create $275mm incremental liquidity with flexible terms and attractive pricing allowing for additional strategic and operational flexibility

    • Include a significant L/C sublimit to support a major customer contract

  • Further solidify its banking relationships in an inaugural corporate facility and diversify its liquidity; send positive signal to all stakeholders; capitalize on its improved credit position

JWCA provided extensive analysis on deal structuring and related items, including:

  • Designed and ran an RFP-process

  • Advised on negotiation tactics and analysis, analyzed model and internal implications

  • Designed the unique covenant structure and provided for best-in-class terms on pricing, covenants, baskets and overall flexibility

  • Helped the Company negotiate the most flexibility to meet its strategic & operational goals

JWCA negotiated with the lenders and facilitated a smooth process of drafting the credit agreement and ancillary documents to the closing

Results

MP Materials successfully closed its inaugural revolving credit facility in a condensed 5-week timespan, completing the syndication process as part of the RFP

The Company was able to eliminate the remainder of the bridge commitment, creating meaningful cost benefits

100% of banks approached committed to credit facility, allowing for the Company to right-size the R/C to better align with ultimate financing needs and ensure maximum flexibility

Credit facility was uniquely designed to incorporate improving credit and growth metrics of the Company, creating a novel “2-step” covenant structure and setting a new standard for companies navigating lender-requirements while leveraging positive underlying growth fundamentals