Summary
Freeport-McMoRan Inc. (FCX) filed an 8-K on July 27, 2020, to report the completion of a significant debt financing transaction. The company successfully sold $1.5 billion in aggregate principal amount of senior notes, consisting of $650 million of 4.375% Senior Notes due 2028 and $850 million of 4.625% Senior Notes due 2030. These notes are guaranteed by Freeport-McMoRan Oil & Gas LLC and are senior unsecured obligations, ranking equally with existing and future unsecured and unsubordinated indebtedness.
Key Highlights
- 1Completion of $1.5 billion senior notes offering on July 27, 2020.
- 2Issued $650 million of 4.375% Senior Notes due 2028.
- 3Issued $850 million of 4.625% Senior Notes due 2030.
- 4Notes are guaranteed by Freeport-McMoRan Oil & Gas LLC.
- 5The securities are senior unsecured obligations of FCX and the Guarantor.
- 6The Indenture includes covenants restricting debt secured by liens, sale and leaseback transactions, and mergers/consolidations.
- 7FCX also announced early results of offers to purchase certain outstanding senior notes and extended the early tender premium.
Frequently Asked Questions
This filing reports the completion of Freeport-McMoRan's (FCX) sale of $1.5 billion in new senior notes, which is a material definitive agreement and a creation of a direct financial obligation.
FCX issued $650 million of 4.375% Senior Notes due August 1, 2028, and $850 million of 4.625% Senior Notes due August 1, 2030. Interest is payable semi-annually, commencing February 1, 2021.
Yes, the Indenture includes covenants that restrict FCX's ability to incur debt secured by liens, engage in sale and leaseback transactions, and merge or consolidate with or into another entity, among other provisions, subject to certain exceptions.
Yes, FCX also announced the early results of its offers to purchase certain outstanding senior notes and extended the early tender premium for those offers, as detailed in one of the incorporated press releases.