Freeport-McMoRan Prices $1.2 Billion of Senior Notes
August 01 2019 - 7:07PM
Business Wire
Freeport-McMoRan Inc. (NYSE: FCX) announced today that it has
priced $1.2 billion of senior notes (collectively, the Notes).
Following is a summary of the two tranches of debt:
Description
Amount (in millions)
Maturity
5.000% Senior Notes
$600
Due September 1, 2027
5.250% Senior Notes
$600
Due September 1, 2029
Total
$1,200
The sale of the senior notes is expected to settle on August 15,
2019, subject to customary closing conditions. Concurrently with
this offering, FCX is conducting cash tender offers for up to
$430.0 million aggregate purchase price, subject to increase or
decrease and exclusive of accrued interest, of its 4.00% Senior
Notes due 2021, 3.55% Senior Notes due 2022 and 3.875% Senior Notes
due 2023 (collectively, the Tender Offers). FCX intends to use the
net proceeds from the offering to fund the redemption of all of its
outstanding 6.875% Senior Notes due 2023, the Tender Offers and the
payment of accrued and unpaid interest, premiums, fees and expenses
in connection therewith, thereby enabling FCX to extend the
maturities of certain of its outstanding indebtedness.
J.P. Morgan Securities LLC, BofA Merrill Lynch, BMO Capital
Markets Corp., BNP Paribas Securities Corp., Citigroup Global
Markets Inc., HSBC Securities (USA) Inc., Mizuho Securities USA
LLC, MUFG Securities Americas Inc., Scotia Capital (USA) Inc. and
SMBC Nikko Securities America, 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 proposed 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 proposed 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, 2018, 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/20190801006109/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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