Freeport-McMoRan Announces Upsizing and Pricing of $1.5 Billion of Senior Notes
July 13 2020 - 7:39PM
Business Wire
Freeport-McMoRan Inc. (NYSE: FCX) announced today that it has
priced an upsized offering of $1.5 billion of senior notes
(collectively, the Notes). The offering size was increased to $1.5
billion from the previously announced $800 million aggregate
principal amount. Following is a summary of the two tranches of
debt:
Description
Amount
(in millions)
Maturity
4.375% Senior Notes
$650.0
Due August 1, 2028
4.625% Senior Notes
$850.0
Due August 1, 2030
Total
$1,500.0
The sale of the senior notes is expected to settle on July 27,
2020, subject to customary closing conditions. Concurrently with
this offering, FCX is conducting cash tender offers for up to $1.5
billion aggregate purchase price, subject to increase or decrease
and exclusive of accrued interest, of its 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. Any net proceeds not used for the Tender
Offers will be used for general corporate purposes, which may
include repurchases or redemptions of FCX’s 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 facts, such as plans, projections or 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,” “could,” “to be,” “potential," “assumptions,”
“guidance,” “future” 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; the duration and
scope of and uncertainties associated with the COVID-19 pandemic,
and the impact thereof on commodity prices, FCX's business and the
global economy 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 and Quarterly Report on Form 10-Q for
the quarter ended March 31, 2020, each filed with the SEC, as
updated by FCX's subsequent filings 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/20200713005711/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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