By Ronda Fears
Memphis, March 23 - Freeport-McMoRan Copper & Gold Inc. priced an upsized $2.5 billion of three-year mandatory convertible preferreds on Thursday after the market closed at par of $100 with a dividend of 6.75% and initial conversion premium of 20%. It priced at the aggressive end of yield talk and the middle of premium talk.
The offering was increased from $1 billion. It had been talked to price with a dividend of 6.75% to 7.25% and an initial conversion premium of 18% to 22%.
There is an over-allotment option for another $375 million, increased from $150 million.
Freeport-McMoRan also raised $2.5 billion from the sale of an increased offering of 41 million common shares at $61.25, discounted from the closing price of $61.91 for the stock on Thursday. The offering was increased from 35 million shares.
There is an over-allotment option in the stock offering for another 6.15 million shares, increased from 5.25 million shares.
Merrill Lynch and JP Morgan are joint bookrunners of both registered offerings.
New Orleans-based Freeport-McMoRan, a mining concern, intends to use proceeds to repay two outstanding term loans due 2012 and 2014 that were used to help fund its $25.9 billion acquisition of Phelps Dodge Corp., which was closed on March 19.
| Issuer: | Freeport-McMoRan Copper & Gold Inc.
|
| Issue: | Mandatory convertible preferreds
|
| Bookrunners: | Merrill Lynch and JP Morgan
|
| Amount: | $2.5 billion, up from $1 billion
|
| Greenshoe: | $375 million, up from $150 million
|
| Maturity: | May 1, 2010
|
| Dividend: | 6.75%
|
| Price: | Par, $100
|
| Yield: | 6.75%
|
| Conversion premium: | 20%
|
| Conversion price: | $61.25/$73.50
|
| Conversion ratio: | 1.6327/1.3605
|
| Dividend protection: | Yes
|
| Takeover protection: | Yes
|
| Call protection: | Non-callable
|
| Puts: | No
|
| Price talk: | 6.75%-7.25%, up 18%-22%
|
| Pricing date: | March 22, after the close
|
| Settlement date: | March 28
|
| Distribution: | Registered
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
