Freeport-McMoRan, PT Freeport Indonesia sign credit agreement worth $465 million
Thursday, July 27 2006 - 01:10 PM WIB
The Credit Agreement provides for a three-year, senior secured revolving credit facility, under which FCX and PT-FI may obtain loans in an aggregate principal amount of $465 million, which may be increased up to $500 million with additional lender commitments.
The Credit Agreement matures on July 25, 2009, according to FCX?s filling to the Securities and Exchange Commission of United States on Wednesday.
The financial institutions are (1) JPMorgan Chase Bank, N.A. as administrative agent, issuing bank, security agent, joint account assets security agent and syndication agent, (2) Citibank, N.A., Merrill Lynch, Pierce, Fenner & Smith Incorporated and The Bank of Nova Scotia, as co-documentation agents, (3) U.S. Bank National Association, as FI trustee, (4) JPMorgan Securities Inc., as sole lead arranger and sole bookrunner, and (5) other financial institutions as lenders.
The obligations of FCX and PT-FI under the Credit Agreement will be secured by a first security lien on substantially all of the assets currently securing the existing Amended and Restated Credit Agreement dated as of September 30, 2003, including, among other things (1) FCX?s pledge of 50.1% of the outstanding capital stock of PT-FI and all of the capital stock of PT Indocopper Investama owned by FCX, and (2) to the extent legally permitted, substantially all other accounts and assets of PT-FI (other than the remaining PTFI shares owned by FCX).
In addition, FCX will guarantee PT-FI?s obligations and PT-FI will guarantee FCX?s obligations under the Credit Agreement.(Robert)