Summary
Freeport-McMoRan Inc. (FCX) has filed an 8-K report detailing a significant amendment to its revolving credit facility. The First Amendment, effective May 30, 2014, extends the maturity date of the credit facility by one year, pushing it to May 31, 2019. This extension provides the company with extended financial flexibility and operational runway. Furthermore, the amendment increases the total principal amount available under the Revolving Credit Facility by $1 billion, bringing the aggregate principal amount to $4 billion. As of May 30, 2014, FCX had $435 million in borrowings and $46 million in outstanding letters of credit, leaving approximately $3.5 billion in availability, with a portion specifically reserved for additional letters of credit. This increase in credit availability and extended maturity date are positive indicators for the company's liquidity and financial management.
Key Highlights
- 1FCX amended its Revolving Credit Agreement dated February 14, 2013.
- 2The maturity date of the Revolving Credit Facility has been extended by one year, from May 31, 2018, to May 31, 2019.
- 3The aggregate principal amount available under the Revolving Credit Facility has been increased by $1,000,000,000, to a total of $4,000,000,000.
- 4As of May 30, 2014, there were $435 million in borrowings under the facility.
- 5As of May 30, 2014, there were $46 million in letters of credit issued under the facility.
- 6Approximately $3.5 billion remained available under the Revolving Credit Facility after accounting for existing borrowings and letters of credit.
- 7A portion of the available credit ($1.5 billion) can be utilized for additional letters of credit.