Freeport-McMoRan offers to buy back debentures

New Orleans-based copper and gold miner Freeport-McMoRan Copper &Gold Inc. (FCX) announced Thursday that it had commenced tender offers to purchase any and all of its outstanding 7.20 percent Senior Notes due 2026 (puttable in November 2003) at a price of US$1,010 per $1,000 in principal amount plus accrued and unpaid interest, and any and all of its outstanding 7.50 percent Senior Notes due 2006 at a price of $1,010 per $1,000 in principal amount plus accrued and unpaid interest.

Accirding to the company, assuming all of the outstanding notes are tendered, the aggregate amount of cash to purchase the tendered notes is estimated to be approximately $455 million. As a result of FCX's previously reported recent financing transactions, FCX's current cash position approximates $800 million.

Each tender offer commences on Thursday, March 6, 2003 and will expire at 5:00 p.m. New York City time on Thursday, April 3, 2003, unless extended or terminated. The tender offers are being made only on the terms and subject to the conditions described in the Offer to Purchase and related documents, dated March 6, 2003, which will be distributed to the holders of the notes. Each tender offer is being made independently of the other. The completion of each tender offer is not conditioned on a minimum amount of notes being tendered.

FCX, through subsidiary PT. Freeport Indonesia, operates huge copper and gold mine in Papua province. (alex)