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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