PHOENIX--(BUSINESS WIRE)--
Freeport-McMoRan Inc. (NYSE: FCX) announced today that notices have been
issued to redeem on December 11, 2017, $617 million aggregate principal
amount of Freeport-McMoRan Inc. (FCX) and Freeport-McMoRan Oil & Gas LLC
(FMOG) senior notes. In accordance with the terms of respective
indentures governing the notes, the notes will be redeemed at the
redemption prices set forth in the table below, together with accrued
and unpaid interest on the notes redeemed to, but not including, the
redemption date.
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Senior Notes
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Principal Amount
Outstanding
(in millions)
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Redemption
Price*
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Redemption Cost*
(in millions)
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FCX 6.50% due 2020
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$552.1
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$101.875
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$562.5
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FMOG 6.50% due 2020
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$64.9
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$101.625
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$66.0
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Total
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$617.0
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$628.5
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* Excludes accrued and unpaid interest
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The aggregate cash interest cost savings would approximate $40 million
per annum. FCX expects to record a gain to net income of approximately
$15 million in the fourth quarter of 2017 in connection with the
redemptions. On November 9, 2017, U.S. Bank National Association, as
trustee for the FCX senior notes, and Wells Fargo Bank, N.A., as trustee
for the FMOG senior notes, distributed to the registered note holders
written notice of the terms of these redemptions.
At September 30, 2017, FCX had $14.8 billion in total debt and
consolidated cash of $5.0 billion. Following these note redemptions and
the November 14, 2017, repayment at maturity of FCX’s 2.30% Senior
Notes, FCX’s total debt would approximate $13.4 billion.
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 the world’s largest publicly traded copper producer.
FCX’s portfolio of assets includes the Grasberg minerals district in
Indonesia, one of the world’s largest copper and gold deposits;
significant mining operations in the Americas, including the large-scale
Morenci minerals district in North America and the Cerro Verde operation
in South America. Additional information about FCX is available on FCX’s
website at fcx.com.
View source version on businesswire.com: http://www.businesswire.com/news/home/20171109005793/en/
Source: Freeport-McMoRan Inc.