Freeport completes deals for acquisition term loan
Wednesday, February 20 2013 - 03:24 AM WIB
NYSE-listed Freeport-McMoRan Copper & Gold Inc. (FCX) said that it has completed agreements with two bank syndicates providing committed financing for a $4 billion bank Term Loan and a new $3 billion Revolving Credit Facility in line with FCX?s proposed acquisitions of Plains Exploration & Production Company (PXP) and McMoRan Exploration Co. (MMR)
The company said the Term Loan will be drawn at the closing of the acquisitions and may be used to fund the cash portion of the acquisitions, refinancing of certain debt outstanding at PXP and MMR or for general corporate purposes.
The Term Loan will mature five years.
In addition, FCX has entered into agreements for a new five-year $3 billion Revolving Credit Facility, which will replace FCX?s existing $1.5 billion revolving credit facility on completion of the PXP transaction.
The proposed acquisitions are expected to close in second quarter 2013.
Editing by Adianto P. Simamora