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Freeport-McMoRan Announces Proposed Private Placement of Senior Notes

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Freeport-McMoRan Copper & Gold Inc. (NYSE: FCX) announced today that it intends to offer, subject to market and other conditions, senior notes in multiple tranches (the “Notes”).

FCX intends to use the net proceeds from the offering, together with the net proceeds of its term loan, primarily to fund the Plains Exploration & Production Company (PXP) and McMoRan Exploration Co. (MMR) acquisitions, including for the payment of cash consideration for the acquisitions and the repayment of certain indebtedness of PXP. If the PXP acquisition does not close, FCX will be required to redeem all of the outstanding Notes in certain of the tranches 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.

Posted-In: News Offerings


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