Freeport redeems $236.4 million preferreds, converts $11 million convertibles, buys $11.5 million notes

By Angela McDaniels

Seattle, April 18 - Freeport-McMoRan Copper & Gold Inc. reduced debt by $154.7 million during the first quarter ended March 31, according to a company news release.

The company privately negotiated the conversion of $11 million of its 7% convertible senior notes due 2011 into 400,000 shares of its common stock and purchased $11.5 million of its 10 1/8% senior notes due 2010 in the open market for $12.6 million.

Freeport also redeemed $236.4 million of its series II gold-denominated preferred stock. The redemption was based on the average gold price of $548.92 per ounce for the 20 trading days ended Jan. 30 and resulted in a $69 million loss.

Following the first-quarter debt repayments and redemption, the company said it has $86.7 million in debt maturities for the remainder of 2006, which can be funded with its $284.1 million of cash.

New Orleans-based Freeport-McMoRan mines copper, gold and silver in Indonesia and smelts copper in Spain and Indonesia.

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