Freeport-McMoRan Copper & Gold Inc. Announces Redemption of its 8.25% Senior Notes due 2015
Freeport-McMoRan Copper & Gold Inc. (NYSE: FCX) announced today that it
has issued a notice to redeem all of its outstanding 8.25% Senior Notes
due 2015 ('Notes?) on April 1, 2011. Approximately $1.1 billion
aggregate principal amount of Notes is currently outstanding.
Holders of record will receive 104.125 percent of the principal amount
together with accrued and unpaid interest from October 1, 2010 to the
redemption date. The Notes bear interest at 8.25% per annum. The annual
interest cost savings would average approximately $90 million per annum.
FCX expects to record an approximate $49million charge to net
income in the second quarter of 2011 in connection with the redemption.
The Bank of New York Mellon Trust Company, N.A., as trustee, has
distributed to the registered note holder written notice of the terms of
the redemption.
At December 31, 2010, FCX had $4.8 billion in total debt and
consolidated cash of $3.7 billion. Following the redemption of the
Notes, FCX′s total debt would approximate $3.7 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 has a dynamic portfolio of operating, expansion and
growth projects in the copper industry and is the world′s largest
producer of molybdenum.
The company′s portfolio of assets includes the Grasberg mining complex,
the world′s largest copper and gold mine in terms of recoverable
reserves, significant mining operations in the Americas, including the
large scale Morenci and Safford minerals districts in North America and
the Cerro Verde and El Abra operations in South America, and the Tenke
Fungurume minerals district in the Democratic Republic of Congo.
Additional information about FCX is available on FCX′s web site at www.fcx.com.
Freeport-McMoRan Copper & Gold Inc.
Financial
Contacts:
Kathleen L. Quirk, 602-366-8016
David
P. Joint, 504-582-4203
or
Media Contact:
Eric
E. Kinneberg, 602-366-7994