Freeport-McMoRan Announces Upsizing and Pricing of $1.3 Billion of Senior Notes
February 19 2020 - 8:32PM
Business Wire
Freeport-McMoRan Inc. (NYSE: FCX) announced today that it has
priced an upsized offering of $1.3 billion of senior notes
(collectively, the Notes). The offering size was increased to $1.3
billion from the previously announced $1.0 billion aggregate
principal amount. Following is a summary of the two tranches of
debt:
Description
Amount (in millions)
Maturity
4.125% Senior Notes
$700
Due March 1, 2028
4.250% Senior Notes
$600
Due March 1, 2030
Total
$1,300
The sale of the senior notes is expected to settle on March 4,
2020, subject to customary closing conditions. Concurrently with
this offering, FCX is conducting cash tender offers for up to $1.1
billion aggregate purchase price, subject to increase or decrease
and exclusive of accrued interest, of its 4.00% Senior Notes due
2021 (the 2021 notes), 3.55% Senior Notes due 2022, 3.875% Senior
Notes due 2023 and 4.55% Senior Notes due 2024 (collectively, the
Tender Offers). FCX intends to use the net proceeds from the
offering to fund the Tender Offers and the payment of accrued and
unpaid interest, premiums, fees and expenses in connection
therewith. To the extent all of the 2021 notes are not tendered and
purchased in the Tender Offers, FCX may, but is not obligated to,
use a portion of any remaining net proceeds from the offering to
redeem all or a portion of the remaining 2021 notes in accordance
with the provisions of the indenture governing the 2021 notes.
These transactions will enable FCX to extend the maturities of
certain of its outstanding indebtedness.
J.P. Morgan Securities LLC, BofA Securities, BNP Paribas
Securities Corp., Citigroup Global Markets Inc., HSBC Securities
(USA) Inc., Mizuho Securities USA LLC, SMBC Nikko Securities
America, Inc., BMO Capital Markets Corp., MUFG Securities Americas
Inc. and Scotia Capital (USA) Inc. are the joint book-running
managers for the offering, with J.P. Morgan Securities LLC serving
as the lead left book-running manager. Copies of the prospectus
supplement relating to the offering can be obtained from J.P.
Morgan Securities LLC, c/o Broadridge Financial Solutions, 1155
Long Island Avenue, Edgewood, NY 11717 or by calling (866)
803-9204.
The offering is being made pursuant to an effective shelf
registration statement filed with the United States Securities and
Exchange Commission (the SEC). The registration statement and the
prospectus supplement are available on the SEC’s website,
www.sec.gov. This press release shall not constitute an offer to
sell nor an offer to buy any securities and shall not constitute an
offer, solicitation or sale in any jurisdiction in which such
offer, solicitation or sale would be unlawful. The offering may be
made only by means of a prospectus supplement and the accompanying
prospectus.
FCX is a leading international mining company with headquarters
in Phoenix, Arizona. FCX operates large, long-lived, geographically
diverse assets with significant proven and probable reserves of
copper, gold and molybdenum. FCX is one of the world's largest
publicly traded copper producers.
FCX’s portfolio of assets includes the Grasberg minerals
district in Indonesia, one of the world's largest copper and gold
deposits; and significant mining operations in North America and
South America, including the large-scale Morenci minerals district
in Arizona and the Cerro Verde operation in Peru.
Cautionary Statement Regarding Forward-Looking
Statements: This press release contains forward-looking
statements, which are all statements other than statements of
historical fact, such as plans, projections and expectations
related to the offering, including the use of proceeds therefrom.
The words “anticipates,” “may,” “can,” “plans,” “believes,”
“estimates,” “expects,” “projects,” "targets," “intends,” “likely,”
“will,” “should,” “to be,” ”potential" and any similar expressions
are intended to identify those assertions as forward-looking
statements. FCX cautions readers that forward-looking statements
are not guarantees of future performance and actual results may
differ materially from those anticipated, expected, projected or
assumed in the forward-looking statements. Important factors that
can cause FCX's actual results to differ materially from those
anticipated in the forward-looking statements include, but are not
limited to, FCX’s ability to consummate the offering; corporate
developments that could preclude, impair or delay the offering due
to restrictions under the federal securities laws; changes in the
credit ratings of FCX; changes in FCX’s cash requirements,
financial position, financing plans or investment plans; changes in
general market, economic, tax, regulatory or industry conditions
and other factors described in more detail under the heading “Risk
Factors” in FCX's Annual Report on Form 10-K for the year ended
December 31, 2019, filed with the SEC.
Investors are cautioned that many of the assumptions upon which
FCX's forward-looking statements are based are likely to change
after the forward-looking statements are made, including for
example commodity prices, which FCX cannot control, and production
volumes and costs, some aspects of which FCX may not be able to
control. Further, FCX may make changes to its business plans that
could affect its results. FCX cautions investors that it does not
intend to update forward-looking statements more frequently than
quarterly notwithstanding any changes in its assumptions, changes
in business plans, actual experience or other changes, and FCX
undertakes no obligation to update any forward-looking
statements.
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version on businesswire.com: https://www.businesswire.com/news/home/20200219006071/en/
Financial Contacts: Kathleen L. Quirk 602-366-8016
David P. Joint 504-582-4203
Media Contact: Linda S. Hayes 602-366-7824
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