Freeport-McMoRan completes sale of $350 million notes

New Orleans-based copper and gold miner Freeport-McMoRan Copper &Gold Inc. (FCX) announced Tuesday that it has completed its private placement of $350 million of 6 7/8% senior notes due 2014. The offering generated net proceeds of approximately $344 million, which FCX expects to use to repay certain Atlantic Copper borrowings, provide funding for its 2004 debt maturities and for other corporate purposes, including additions to working capital and possible additional repayments of debt.

FCX also announced the completion of the early conversion of an additional $45.8 million of 8 1/4% Convertible Senior Notes due 2006 into FCX common stock through privately negotiated transactions. In these transactions, holders agreed to convert their Notes into approximately 3.2 million shares of FCX common stock based on the $14.30 per share conversion price under the terms of the Notes.

FCX issued $603.75 million of Notes in August 2001 and deposited a portion of the proceeds in escrow to fund the first three years of interest payments. During 2003, $311 million in Notes were converted into common stock. On January 6, 2004, FCX completed transactions resulting in early conversion of $180 million of Notes into FCX common stock. In aggregate, approximately $537 million of the Notes have been converted into common stock and the remaining principal outstanding approximates $67 million. The Notes are callable at FCX's option after July 31, 2004, and FCX currently intends to call all remaining Notes not previously converted at this time.

After giving effect to this conversion, FCX shares of common stock outstanding total approximately 200 million. (alex)