Freeport-McMoRan Copper & Gold issues $500 million senior notes due 2010

US mining giant Freeport-McMoRan Copper & Gold Inc. (FCX) announced Friday that it had priced US$500 million of senior notes due 2010 which bears interest rate of 10.125 percent per year.

The offering will generate net proceeds of approximately $486 million, which FCX will use to repay borrowings under its bank credit facilities, with the excess invested in short term investments. FCX plans to use its available cash to provide for the redemption of its Series I Gold-Denominated Preferred Stock, which has a mandatory redemption date of August 1, 2003, and for its other 2003 debt obligations, including its 7.20 percent Senior Notes in November 2003, said the company.

FCX said it also intended to enter into a new bank credit facility, which JPMorgan will arrange. When FCX enters into the new credit facility, FCX intends to terminate its existing bank credit facilities.

FCX, through its subsidiary PT. Freeport Indonesia, runs giant copper and gold mine in Papua province. (alex)