Freeport-McMoRan gets up to $3.5 billion five-year unsecured revolver

By Sarah Lizee

Olympia, Wash., April 23 – Freeport-McMoRan Inc. and subsidiaries PT Freeport Indonesia and Freeport-McMoRan Oil & Gas LLC entered into a new revolving credit agreement on Friday that provides for an up to $3.5 billion five-year unsecured revolving credit facility, according to an 8-K filing with the Securities and Exchange Commission.

The facility, which matures April 20, 2023, replaces Freeport-McMoRan’s existing revolving credit agreement dated as of Feb. 14, 2013.

Of the total amount of the new facility, up to $1.5 billion is available in letters of credit.

Freeport Indonesia’s borrowing capacity is limited to $500 million.

Borrowings bear interest at Libor plus a margin that ranges from 137.5 basis points to 325 bps and the commitment fee ranges from 20 bps to 50 bps, in each case depending on credit ratings.

Financial covenants include a total leverage ratio not to exceed 3.75 to 1 and an interest expense coverage ratio of not less than 2.25 to 1.

As of Friday, the company had no borrowings outstanding under the revolver and about $13 million in letters of credit issued.

JPMorgan Chase Bank, NA is the administrative agent and Bank of America, NA is the syndication agent.

BNP Paribas, Citibank, NA, HSBC Bank USA, NA, Mizuho Bank, Ltd., Sumitomo Mitsui Banking Corp., Bank of Nova Scotia, MUFG Bank, Ltd. and Bank of Montreal, Chicago Branch were co-documentation agents. JPMorgan, Merrill Lynch, Pierce, Fenner & Smith Inc., BNP Paribas Securities Corp., Citigroup Global Markets Inc., HSBC Securities (USA) Inc., Mizuho Bank, Sumitomo Mitsui, Bank of Nova Scotia, MUFG Bank and Bank of Montreal were joint lead arrangers and joint bookrunners.

Freeport 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.