Published on 8/1/2019 in the Prospect News High Yield Daily.
New Issue: Freeport-McMoRan prices $1.2 billion senior notes in two tranches
By Paul A. Harris
Portland, Ore., Aug. 1 – Freeport-McMoRan Inc. priced $1.2 billion of senior notes (Ba1/BB/BB+) in two evenly split tranches in a Thursday drive-by, according to market sources.
The sale included $600 million of eight-year notes that priced at par to yield 5%. The yield printed at the wide end of the 4 7/8% to 5% yield talk but tighter than initial talk in the 5¼% area.
The sale also included $600 million of 10-year notes that priced at par to yield 5¼%. The yield printed at the wide end of the 5 1/8% to 5¼% yield talk but at the tight end of the 5¼% to 5½% initial talk.
J.P. Morgan Securities LLC, BofA Securities Inc., BMO Capital Markets Corp., BNP Paribas Securities Corp., Citigroup Global Markets Inc., HSBC Securities (USA) Inc., Mizuho Securities USA LLC, MUFG, Scotia Capital (USA) Inc. and SMBC Nikko Securities America, Inc. were the joint bookrunners.
The Phoenix-based mining company plans to use the proceeds and, if necessary, cash on hand or available liquidity to fund the redemption of all of its outstanding 6 7/8% senior notes due 2023, and to fund the concurrent tender offers for up to $430 million of its 4% senior notes due 2021, its 3.55% senior notes due 2022 and its 3 7/8% senior notes due 2023.
| Issuer: | Freeport-McMoRan Inc.
|
| Amount: | $1.2 billion
|
| Securities: | Senior notes
|
| Bookrunners: | J.P. Morgan Securities LLC, BofA Securities Inc., BMO Capital Markets Corp., BNP Paribas Securities Corp., Citigroup Global Markets Inc., HSBC Securities (USA) Inc., Mizuho Securities USA LLC, MUFG, Scotia Capital (USA) Inc. and SMBC Nikko Securities America Inc.
|
| Senior co-managers: | ABN Amro, BBVA Securities Inc., CIBC, Credit Agricole CIB, RBC Capital Markets LLC, U.S. Bancorp Investments Inc. and Citizens Capital Markets Inc.
|
| Co-managers: | Loop Capital Markets LP and Williams Capital Group LP
|
| Trade date: | Aug. 1
|
| Settlement date: | Aug. 15
|
| Ratings: | Moody's: Ba1
|
| S&P: BB
|
| Fitch: BB+
|
| Distribution: | SEC registered
|
| Marketing: | Quick to market
|
|
|
| Eight-year notes
|
| Amount: | $600 million
|
| Maturity: | Sept. 1, 2027
|
| Coupon: | 5%
|
| Price: | Par
|
| Yield: | 5%
|
| First call: | Make-whole call until Sept. 1, 2022, then callable at 102.5
|
| Equity clawback: | 35% at 102.5 until Sept. 1, 2022
|
| Price talk: | 4 7/8% to 5%
|
|
|
| 10-year notes
|
| Amount: | $600 million
|
| Maturity: | Sept. 1, 2029
|
| Coupon: | 5¼%
|
| Price: | Par
|
| Yield: | 5¼%
|
| First call: | Make-whole call until Sept. 1, 2024, then callable at 102.625
|
| Equity clawback: | 35% at 105.25 until Sept. 1, 2022
|
| Price talk: | 5 1/8% to 5¼%
|
© 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.
