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Freeport-McMoRan induces conversion of $268 million 5.5% preferreds
By Susanna Moon
Chicago, Jan. 26 - Freeport-McMoRan Copper & Gold Inc. said it induced conversion of 300,000 shares of its 5.5% convertible perpetual preferred stock with a liquidation preference of $268 million into 5.8 million common shares.
The company said on Dec. 18 that it agreed in privately negotiated transactions to induce conversion of the preferreds.
To induce the conversion of these preferreds, Freeport-McMoRan said it will issue an additional 1 million shares of common stock valued at $22 million to the preferred holders at the time of the conversions.
The company also previously said it will record a $22 million charge to preferred dividends in the fourth quarter in connection with these transactions and estimates its annual dividends savings will be about $15 million.
Following the conversions, the amount of preferreds outstanding will be about $832 million.
Freeport-McMoRan is a mining company based in Phoenix.
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