Freeport-McMoRan enters new $3 billion credit facility

Freeport-McMoRan Inc. (NYSE: FCX) entered into a new five-year $3 billion senior unsecured revolving credit facility on May 14, 2026, according to a company statement.

The new facility replaces FCX's prior $3 billion revolving credit facility dated October 19, 2022, which was scheduled to mature in October 2027. The new agreement extends the maturity date to May 14, 2031.

JPMorgan Chase Bank serves as administrative agent, while Bank of America acts as syndication agent for the facility. PT Freeport Indonesia, a subsidiary of FCX, is included as a borrower alongside the parent company.

The credit facility maintains a $500 million limit on PT Freeport Indonesia's borrowing capacity and provides a $1.5 billion sublimit for letters of credit issuance. At the time of the transition, no borrowings were outstanding under the prior facility, with approximately $5 million in letters of credit transferred to the new arrangement.

Interest rates on loans under the facility will be based on either the Term Secured Overnight Financing Rate or the Alternate Base Rate, plus a spread determined by FCX's credit ratings.

The agreement includes financial covenants requiring FCX to maintain a total leverage ratio not exceeding 3.75 to 1.00. The facility also contains restrictions on subsidiary debt incurrence, asset liens, sale-leaseback transactions, mergers, and asset sales, subject to specified exceptions.

PT Freeport Indonesia's liability exposure under the facility is capped at $500 million. Subsidiary guarantees will be required if any non-borrower subsidiary guarantees FCX debt exceeding $250 million, with exceptions for certain foreign entities.

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