Freeport-McMoRan induces conversion of $268 million 5.5% preferreds

By Angela McDaniels

Tacoma, Wash., Feb. 26 - Freeport-McMoRan Copper & Gold Inc. said it induced the conversion of $268 million of its 5.5% convertible perpetual preferred stock through privately negotiated transactions in December.

The 0.3 million preferreds were converted into 5.8 million shares of common stock, according to the company's 10-K report for 2008 filed with the Securities and Exchange Commission Thursday.

To induce conversion, Freeport said it issued to the holders an additional 1 million shares of common stock valued at $22 million.

The company expects these transactions will result in about $15 million in annual preferred dividend savings.

Freeport-McMoRan is a mining company based in Phoenix.

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