Freeport-McMoRan Gets $7B Loans To Buy Energy Cos.
PHOENIX (AP) â¿¿ Freeport-McMoRan Copper & Gold Inc. said Tuesday that it has signed up $7 billion in new loans to help pay for its planned $20 billion acquisition of oil and gas companies Plains Exploration & Production Co. and McMoRan Exploration Co.
The purchase price includes $11 billion in debt. The deals are expected to close by the end of June.
The miner, based in Phoenix, announced the acquisitions in December. The purchases could create a natural resources conglomerate with assets ranging from oil rigs in the Gulf of Mexico to a huge copper mine in Indonesia, but there been some shareholder backlash over the deal's high costs.
At the time the deals were announced, Freeport-McMoRan said that it had secured $9.5 billion in financing to fund the cash portions of acquisitions and to repay outstanding Plains Exploration debt.The company said Tuesday that existing lender commitments were cut to $5.5 billion from $9.5 billion because of the new $4 billion term loan. It matures five years from when Freeport-McMoRan starts borrowing. It also signed up for a five-year, $3 billion credit line, which will replace an existing $1.5 billion facility. Freeport-McMoRan shares fell 80 cents, or 2.3 percent, to $34.24 in midday trading.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV