This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Freeport-McMoRan Copper & Gold Inc. Completes Sale Of $6.5 Billion Of Senior Notes In A Private Placement

Stocks in this article: FCX

Freeport-McMoRan Copper & Gold Inc. (NYSE: FCX) announced today that it has completed the sale of $6.5 billion of senior notes in four tranches, consisting of 5-year, 7-year, 10-year and 30-year senior notes. The offering generated net proceeds of approximately $6.4 billion, which FCX expects to use, together with the net proceeds of its $4.0 billion term loan, primarily to fund the acquisitions of Plains Exploration & Production Company (PXP) and McMoRan Exploration Co. (MMR), including for the payment of cash consideration for the acquisitions and the repayment of certain indebtedness of PXP.

Following is a summary of the four new tranches of debt, which will have an annual aggregate weighted-average interest cost of approximately 3.9%:

               

Description

Amount

Maturity

2.375% Senior Notes (1) $1.5 Billion Due March 15, 2018
3.100% Senior Notes (2) $1.0 Billion Due March 15, 2020
3.875% Senior Notes (3) $2.0 Billion Due March 15, 2023
5.450% Senior Notes (4) $2.0 Billion Due March 15, 2043

(1) Priced at 99.990% to yield 2.377%

(2) Priced at 99.962% to yield 3.106%

(3) Priced at 99.941% to yield 3.882%

(4) Priced at 99.544% to yield 5.481%

 

James R. Moffett, Chairman of the Board and Richard C. Adkerson, President and Chief Executive Officer said, "We are pleased to complete the financing requirements for our pending acquisitions of Plains Exploration & Production Company and McMoRan Exploration Co. on attractive terms. The combined bank and bond financings totaling $10.5 billion have a weighted average current interest cost of 3.1% and will enable us to fund the approximate $5.6 billion cash portion of the acquisitions and repay higher-cost debt of the targets upon completion of the transactions. We look forward to completing the pending acquisitions in the second quarter of 2013, and to pursuing our strategy of generating values for shareholders from our large mining and oil and gas resource position."

If the PXP acquisition does not close, FCX will be required to redeem all of the outstanding 7-year, 10-year and 30-year notes at 101% plus accrued and unpaid interest. As previously announced, PXP and MMR stockholder meetings to approve the acquisitions will be held after the U.S. Securities and Exchange Commission has declared effective the respective registration statements on Form S-4 filed in connection with the acquisitions. The transactions are expected to close in second-quarter 2013.

1 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Jim Cramer and Stephanie Link reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

Jim Cramer's protégé, David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
Try it NOW
Try it NOW
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

Jim Cramer's protégé, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 17,672.60 -141.38 -0.79%
S&P 500 2,051.82 -11.33 -0.55%
NASDAQ 4,757.8790 +7.4820 0.16%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs