By Andrea Heisinger
New York, Feb. 8 - Freeport-McMoRan Copper & Gold Inc. sold $3 billion of senior notes (Baa3/BBB/BBB) in three parts on Wednesday, a syndicate source said.
The $500 million of 1.4% three-year paper priced at a spread of 110 basis points over Treasuries. This was at the tight end of guidance in the 112.5 bps area.
There was also a $500 million tranche of 2.15% five-year notes priced at Treasuries plus 135 bps. This was at the low end of talk in the 137.5 bps area.
Finally, there was $2 billion of 3.55% 10-year notes priced at a spread of 160 bps over Treasuries. This was at the tight end of talk in the 162.5 bps area.
The notes feature a change-of-control put at 101%.
Full terms for the deal were not available at press time.
Bank of America Merrill Lynch and J.P. Morgan Securities LLC were the bookrunners.
Proceeds will be used to redeem a portion of outstanding 8.375% senior notes due in 2017.
The international mining company is based in Phoenix.
| Issuer: | Freeport-McMoRan Copper & Gold Inc.
|
| Issue: | Senior notes
|
| Amount: | $3 billion
|
| Bookrunners: | Bank of America Merrill Lynch, J.P. Morgan Securities LLC
|
| Change-of-control put: | 101%
|
| Trade date: | Feb. 8
|
| Settlement date: | Feb. 13
|
| Ratings: | Moody's: Baa3
|
| Standard & Poor's: BBB
|
| Fitch: BBB
|
|
|
| Three-year notes
|
| Amount: | $500 million
|
| Maturity: | 2015
|
| Coupon: | 1.4%
|
| Spread: | Treasuries plus 110 bps
|
| Price talk: | 112.5 bps area
|
|
|
| Five-year notes
|
| Amount: | $500 million
|
| Maturity: | 2017
|
| Coupon: | 2.15%
|
| Spread: | Treasuries plus 135 bps
|
| Price talk: | 137.5 bps area
|
|
|
| 10-year notes
|
| Amount: | $2 billion
|
| Maturity: | 2022
|
| Coupon: | 3.55%
|
| Spread: | Treasuries plus 160 bps
|
| Price talk: | 162.5 bps area
|
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