Freeport-McMoRan exchanges $45.8 million more 8¼% convertibles for stock

New York, Feb. 3 - Freeport-McMoRan Copper & Gold Inc. said it has exchanged a further $45.8 million of its 8¼% convertible senior notes due 2006 for common stock.

The New Orleans mining company issued 3.2 million shares and paid $1 million in cash for the securities plus accrued interest.

The stock issued was based on the $14.30 per share conversion price of the notes. The cash was funded from the restricted cash in the interest escrow associated with the convertibles.

Freeport carried out the exchanges in privately negotiated transactions.

The company originally issued $603.75 million of the notes in August 2001.

During 2003, $311 million of the notes were converted into common stock.

On Jan. 6, Freeport completed transactions resulting in early conversion of $180 million of notes into common stock.

Freeport now has $67 million of the convertibles outstanding.

They become callable on July 31, and the company said it plans to exercise that option.

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