Freeport-McMoRan Copper & Gold Inc. Announces Terms for Mandatory Conversion of Its 6 3/4% Mandatory Convertible Preferred Stock
29 April 2010 - 3:00PM
Business Wire
Freeport-McMoRan Copper & Gold Inc. (NYSE: FCX) announced
today the conversion rate for its 6 3/4% Mandatory Convertible
Preferred Stock (the “Preferred Stock”), which automatically
converts into shares of FCX’s common stock on May 1, 2010. Under
the terms of the Preferred Stock, the conversion rate per $100 face
amount of the Preferred Stock will be 1.3716. All of the
outstanding shares of Preferred Stock will automatically convert
into common stock; therefore, no action by Preferred Stock holders
is required.
FCX will issue approximately 38 million shares of common stock
in connection with the mandatory conversion on May 1, 2010. After
giving effect to this transaction, FCX will have approximately 470
million shares of common stock outstanding.
Holders of Preferred Stock on the April 15, 2010 record date
will also receive the previously announced final quarterly cash
dividend of $1.6875 per share, unless the shares of Preferred Stock
were voluntarily converted into shares of FCX’s common stock prior
to the May 1, 2010 mandatory conversion date.
Holders are urged to consult their tax advisors with respect to
the particular tax consequences to them of owning and disposing of
the Preferred Stock and the common stock, including the
consequences under the laws of any state, local or foreign
jurisdiction. Conversion of the Preferred Stock into common stock
generally will not be a taxable event. A U.S. holder’s tax basis in
the common stock received upon a conversion of the Preferred Stock
will generally equal the tax basis of the Preferred Stock that was
converted and the holding period for the common stock received will
include such holder’s holding period for the Preferred Stock
converted.
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.”
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