Freeport holders to convert $385.5 million 5.5% convertible preferreds

By Angela McDaniels

Tacoma, Wash., Sept. 4 - Freeport-McMoRan Copper & Gold Inc. said holders of approximately $385.5 million, or 46%, of its 5.5% convertible perpetual preferred stock have agreed to convert their preferreds into approximately 8.3 million shares of the company's common stock.

To induce the early conversions, Freeport-McMoRan will pay $1 million in cash to the holders, according to an 8-K filing with the Securities and Exchange Commission.

The conversions will leave approximately $446.1 million of the preferreds outstanding.

As previously reported, the company will redeem the preferreds at par on Sept. 21.

The preferreds are convertible into Freeport-McMoRan stock until 5 p.m. ET on Sept. 18.

The conversion rate is 21.5305 shares of common stock per preferred, which is equivalent to a conversion price of $46.45. Freeport-McMoRan stock closed at $66.00 (NYSE: FCX) on Friday.

Freeport-McMoRan is a Phoenix-based mining company.

© 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.