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Freeport-McMoRan exchanges $311 million convertibles for stock
New York, Aug. 25 - Freeport-McMoRan Copper & Gold Inc. said it converted $311 million of its 8¼% senior convertible notes due 2006 into stock in privately negotiated transactions.
The New Orleans mining company said the early conversions cover 51% of its $603.75 million outstanding 8¼% convertibles.
The holders received 21.76 million shares of stock for the notes, based on the $14.30 per share conversion price of the notes.
Freeport also paid $23 million in cash to the holders, which will be funded from the interest escrow account for the notes.
"This significant reduction in our debt is another important step in strengthening our balance sheet, reducing our interest expense and improving our financial flexibility," said Richard C. Adkerson, president and chief financial officer of Freeport-McMoRan, in a news release.
"Using the strong cash flows being generated by our operations and approximately $1.1 billion of long-term capital we raised during the first quarter, we continue to take actions to improve our financial position which will benefit our shareholders and the investors in our debt securities."
Freeport-McMoRan issued the convertibles in August 2001. They are callable from July 31, 2004 onwards. The company's stock closed at $27.28 Friday.
SL Green to redeem 8% Piers for stock
New York, Aug. 25 - SL Green Realty Corp. said it will redeem all its 8% series A Preferred Income Equity Redeemable Shares (Piers) for stock on Oct. 1.
The Piers will be converted at the rate of 1.0215 shares of common stock per preferred share.
Holders will also receive dividends through the conversion date.
The New York real estate investment trust has 4.6 million shares of the $25 par convertibles outstanding or $115 million.
The Piers became redeemable on July 15 at a price of $25.889. They are also convertible at the holders option at a price of $24.475. SL Green stock closed at $34.57 Friday.
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