Freeport-McMoRan calls $617 million of 6˝% notes issued in two series

By Susanna Moon

Chicago, Nov. 9 – Freeport-McMoRan Inc. issued a redemption notice for its $552.1 million of 6˝% notes due 2020 at 101.875 for a redemption cost of $562.5 million.

Meanwhile, Freeport-McMoRan Oil & Gas LLC is calling its $64.9 million of 6˝% notes due 2020 at 101.625 for a total purchase price of $66 million, according to a company announcement.

The $617 principal amount of notes will be redeemed on Dec. 11 at a total cost of $628.5 million excluding interest.

Holders also will receive accrued interest to but excluding the redemption date.

The cash interest cost savings amount to about $40 million per year, the company said.

The company said it expects to record a gain to net income of about $15 million in the fourth quarter of 2017 in connection with the redemptions.

After the redemptions and the Nov. 14 maturity of the company’s 2.3% senior notes, total debt will be reduced to $13.4 billion, the company added.

Freeport is a Phoenix-based mining company.

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