Freeport Priced US$3 Billion Notes

Indonesia Finance

Thursday, 09 February 2012 08:58

Written by Hatman Bintang

PHOENIX, Indonesia Today - Freeport-McMoRan Copper & Gold Inc has priced $3 billion of senior notes to redeem the outstanding 8.375% Senior Notes due 2017.

The notes are made in three tranches: 40% Senior Notes at $0.5 billion value due in March 2015, 15% Senior Notes at $0.5 billion value die in March 2017, and 55% Senior Notes at $2 billion value die in March 2022.

The notes sale is expected to settle on February 13, 2012 subject to customary closing conditions. Freeport intends to use the net proceeds from the offering plus cash on hand to redeem its outstanding 8.375% Senior Notes due 2017.

JP Morgan Securities LLC and Merrill Lynch, Pierce, Ferner & Smith Inc have been appointed as the joint book-running managers for the offering.

Freeport operates the world’s largest copper & gold mine, Grasberg minerals district, Puncak Jaya, Papua. Indonesian government has been looking for contract renegotiation with Freeport on Grasberg, but has yet to be called imminent.

FCX expects sales from Indonesia to approximate 930 million pounds of copper and 1.1 million ounces of gold for the year 2012, compared to 2011 sales of 846 million pounds of copper and 1.3 million ounces of gold.

Gold sales in 2012 are projected to be lower than in 2011 because of mining in a lower grade section of the Grasberg mine in 2012. (bintang@theindonesiatoday.com)

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