White & Case Advised USA Rare Earth on LOI for Access to US$1.6 Billion in US Government Funding and on US$1.5 Billion PIPE
White & Case Advised USA Rare Earth on LOI for Access to US$1.6 Billion in US Government Funding and on US$1.5 Billion PIPE
Global law firm White & Case LLP has advised USA Rare Earth, Inc. (Nasdaq: USAR) on its entry into a non-binding letter of intent (LOI) with the US Department of Commerce for the CHIPS Program to provide a total of US$1.6 billion, including US$277 million in proposed federal funding and US$1.3 billion in a proposed senior secured loan under the CHIPS Act, as well as on a private placement of common stock (PIPE) in the amount of US$1.5 billion, anchored by Inflection Point, with participation from large mutual fund complexes. The PIPE is expected to close on January 28, 2026, subject to the satisfaction of customary closing conditions.
The transactions are intended to enable the largest domestic heavy rare earth, critical mineral, metal and magnet production to support US semiconductor, defense, energy and other major industries.
The White & Case team was led by Joel Rubinstein (Partner/ Capital Markets/ New York), Jonathan Rochwarger (Partner/ Capital Markets/ New York) and Jason Rocha (Partner/ Capital Markets/ Houston), and Russell Deutsch (Associate/ New York).
The team also included US Government Contracts Melissa Taylormoore (Partner/ Washington, DC) and Bryson Manning (Associate/ Capital Market/ Houston) and Daniel Quesenberry (Associate/ Capital Market/ Houston).
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