Freeport-McMoRan says most convertible preferreds exchanged for stock

New York, Dec. 22 - Freeport-McMoRan Copper & Gold Inc. said holders of most of its shares of step-up convertible preferred stock exchanged the securities for common shares ahead of the call.

Of the 14.0 million shares of the convertibles outstanding, holders converted 13.8 million into 11.6 million shares of Freeport-McMoRan's common stock.

The remaining convertibles will be redeemed for $4 million in cash, the company said.

"This transaction follows a series of steps completed in 2003 to strengthen our balance sheet and enhance our financial flexibility," said Richard C. Adkerson, president and chief executive officer of the New Orleans copper, gold and silver miner, in a news release. "The conversion of these preferred shares into common equity will simplify our capital structure and result in cash savings of approximately $15 million per annum at the current level of common stock dividend."

Freeport-McMoRan called the convertibles for redemption at a price of $25.00 per share for the preferreds plus $0.2283 of accrued dividends.

Up to 5 p.m. ET Dec. 19 holders could convert the preferreds into Freeport-McMoRan common stock at the rate of 0.835 shares of common stock per share of preferred stock.

© 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.