Freeport-McMoRan greenshoe exercised, raising convertibles to $1.1 billion

New York, March 30 - Freeport-McMoRan Copper & Gold Inc. said the underwriters of its recent offering of convertible perpetual preferred stock exercised the $100 million over-allotment option in full, raising the size of the deal to $1.1 billion.

The New Orleans copper, gold and silver miner originally priced $1 billion of the securities after the close on March 24 to yield 5.5% with a 40% initial conversion premium.

Morgan Stanley and Merrill Lynch & Co. were joint bookrunners for the Rule 144A deal.

Freeport said it used $881.9 million of the proceeds to acquire 23.9 million shares of its common stock owned by Rio Tinto at a price of $36.85 per share.

Remaining proceeds will be used for general corporate purposes.

"We are pleased with the success of this transaction. It expands our investor base and provides our common shareholders greater participation in the value of our Grasberg copper and gold mining complex, all with no increase in our debt," said Richard Adkerson, Freeport's president and chief executive officer, in a news release.

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