UPDATE:Freeport-McMoRan Copper & Gold Sells $3 Billion Multitranche Issue-Source
09 Februar 2012 - 12:22AM
Dow Jones News
Freeport-McMoRan Copper & Gold Inc. (FCX) sold $3 billion in
a multitranche issue to the U.S. credit markets Wednesday,
according to a person familiar with the deal.
The deal featured $500 million three- and five-year tranches,
and $2 billion of 10-year bonds.
The 1.4% coupon, three-year notes were priced to yield 1.449%,
or 110 basis points over Treasurys. The 2.15% coupon, five-year
notes were priced to yield 2.175%, or 135 basis points over
Treasurys. The 3.55% coupon, 10-year bonds were priced to yield
3.58%, or 160 basis points over Treasurys.
The deal was expected to be rated Baa3 by Moody's Investors
Service and BBB by Standard & Poor's and Fitch Ratings. It is
registered with the Securities and Exchange Commission.
The Phoenix mining company is using the proceeds to redeem a
portion of outstanding 8.375% senior notes due 2017.
The bonds feature a change of control provision allowing
investors to redeem the bonds at 101 cents on the dollar should the
company be acquired. The provision safeguards investors from a
leveraged buyout. An investor may also redeem the bonds if they are
downgraded below investment-grade.
Bank of America Merrill Lynch and J.P. Morgan are leading the
sale.
-By Patrick McGee, Dow Jones Newswires; 212-416-2382;
patrick.mcgee@dowjones.com
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