Summary
Freeport-McMoRan Inc. (FCX) announced on July 25, 2006, the execution of an Amended and Restated Credit Agreement. This agreement establishes a three-year senior secured revolving credit facility with an initial aggregate principal amount of $465 million, which can be increased to $500 million with additional commitments. This facility is a crucial component of FCX's financial strategy, providing access to capital for its operations and growth. The credit facility is secured by a first security lien on substantially all assets that previously secured the existing credit agreement, including a pledge of 50.1% of the outstanding capital stock of its principal operating unit, PT Freeport Indonesia (PT-FI), and all capital stock of PT Indocopper Investama. Both FCX and PT-FI are providing guarantees for each other's obligations under the agreement. The new credit agreement matures on July 25, 2009, and contains customary financial covenants and events of default that could lead to acceleration of repayments.
Key Highlights
- 1FCX entered into an Amended and Restated Credit Agreement on July 25, 2006.
- 2The agreement establishes a three-year, senior secured revolving credit facility.
- 3The facility has an initial aggregate principal amount of $465 million, with an option to increase to $500 million.
- 4The credit facility is secured by a first security lien on substantially all of FCX's and PT-FI's assets, including pledged PT-FI stock.
- 5Both FCX and its principal operating unit, PT-FI, are guaranteeing each other's obligations under the agreement.
- 6The Credit Agreement matures on July 25, 2009.
- 7Customary financial covenants and events of default are included in the agreement.