By Andrea Heisinger
New York, Feb. 9 - Freeport-McMoRan Copper & Gold Inc. gave full terms of its $3 billion sale of senior notes (Baa3/BBB/BBB) priced in three parts, according to FWP filings with the Securities and Exchange Commission.
The $500 million of 1.4% three-year paper priced at 99.857 to yield 1.449% with a spread of 110 basis points over Treasuries. This was at the tight end of guidance in the 112.5 bps area.
The notes have a make-whole call at Treasuries plus 20 bps.
There was also a $500 million tranche of 2.15% five-year notes priced at 99.88 to yield 2.175% with a spread of Treasuries plus 135 bps. This was at the low end of talk in the 137.5 bps area.
There is a make-whole redemption at 20 bps over Treasuries on this tranche.
Finally, there was $2 billion of 3.55% 10-year notes priced at 99.747 to yield 3.58% with a spread of 160 bps over Treasuries. This was at the tight end of talk in the 162.5 bps area.
There is a make-whole call at 25 bps over Treasuries until Dec. 1, 2021, and the notes can be called at par after that date.
All of the tranches feature a change-of-control put at 101%.
Bank of America Merrill Lynch and J.P. Morgan Securities LLC were the bookrunners.
Senior co-managers were BNP Paribas Securities Corp., Citigroup Global Markets Inc., HSBC Securities (USA) Inc. and Scotia Capital USA Inc.
Goldman Sachs & Co., Mizuho Securities USA Inc. and Morgan Stanley & Co. LLC were the co-managers.
Junior co-managers were CIBC World Markets Corp., Mitsubishi UFJ Securities USA Inc., Santander Investment Securities Inc., SMBC Nikko Capital Markets Ltd., U.S. Bancorp Investments Inc., Deutsche Bank Securities Inc., Natixis Securities Americas LLC, RBC Capital Markets LLC, Standard Chartered Bank, Wells Fargo Securities LLC and Williams Capital Group LP.
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
|
| Senior co-managers: | BNP Paribas Securities Corp., Citigroup Global Markets Inc., HSBC Securities (USA) Inc., Scotia Capital USA Inc.
|
| Co-managers: | Goldman Sachs & Co., Mizuho Securities USA Inc., Morgan Stanley & Co. LLC
|
| Junior co-managers: | CIBC World Markets Corp., Mitsubishi UFJ Securities USA Inc., Santander Investment Securities Inc., SMBC Nikko Capital Markets Ltd., U.S. Bancorp Investments Inc., Deutsche Bank Securities Inc., Natixis Securities Americas LLC, RBC Capital Markets LLC, Standard Chartered Bank, Wells Fargo Securities LLC, Williams Capital Group LP
|
| 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: | Feb. 13, 2015
|
| Coupon: | 1.4%
|
| Price: | 99.857
|
| Yield: | 1.449%
|
| Spread: | Treasuries plus 110 bps
|
| Call: | Make-whole at Treasuries plus 20 bps
|
| Price talk: | 112.5 bps area
|
|
|
| Five-year notes
|
| Amount: | $500 million
|
| Maturity: | March 1, 2017
|
| Coupon: | 2.15%
|
| Price: | 99.88
|
| Yield: | 2.175%
|
| Spread: | Treasuries plus 135 bps
|
| Call: | Make-whole at Treasuries plus 20 bps
|
| Price talk: | 137.5 bps area
|
|
|
| 10-year notes
|
| Amount: | $2 billion
|
| Maturity: | March 1, 2022
|
| Coupon: | 3.55%
|
| Price: | 99.747
|
| Yield: | 3.58%
|
| Spread: | Treasuries plus 160 bps
|
| Call: | Make-whole at Treasuries plus 25 bps until Dec. 1, 2021, par call after
|
| Price talk: | 162.5 bps area
|
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