New Issue: Phelps Dodge $200 million mandatory convertible at 6.75% yield, up 20%

By Ronda Fears

Nashville, Tenn., June 7 - Phelps Dodge Inc. sold $200 million of three-year mandatory convertibles at par of 100 to yield 6.75% with a 20% initial conversion premium in a bought deal via JPMorgan.

The Phoenix-based copper mining company said proceeds would primarily be used to pay down debt with the remainder for general corporate purposes.

Terms of the new deal are:

Issuer: Phelps Dodge Inc.

Amount: $200 million

Lead Manager: JPMorgan

Maturity Date: Aug. 15, 2005

Dividend: 6.75%

Issue Price: par, $100

Yield-to-maturity: 6.75%

Conversion Premium: 20%

Conversion Price: $41.01/$48.00

Conversion Ratio: 2.0833/2.4384

Call: Non-callable

Settlement Date: June 12

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