Freeport-McMoRan (FCX) to Redeem $3B of Senior Debt
Freeport-McMoRan Copper & Gold Inc. (NYSE: FCX) has issued a notice to redeem all of its outstanding 8.375% Senior Notes due 2017 (“Notes”) on March 14, 2012. Approximately $3.0 billion aggregate principal amount of Notes is currently outstanding . FCX plans to use proceeds from its $3.0 billion senior notes offering completed earlier today, plus cash on hand to fund the redemption of the Notes. Annual interest cost savings associated with the refinancing will total approximately $160 million.
Holders of record will receive the principal amount together with the applicable premium plus accrued and unpaid interest from October 1, 2011 to but excluding the redemption date. The Notes bear interest at 8.375% per annum. FCX expects to record an approximate $147 million charge to net income in the first quarter of 2012 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.
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Holders of record will receive the principal amount together with the applicable premium plus accrued and unpaid interest from October 1, 2011 to but excluding the redemption date. The Notes bear interest at 8.375% per annum. FCX expects to record an approximate $147 million charge to net income in the first quarter of 2012 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.
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