Freeport offers convertible notes to pay debt

Freeport-McMoRan Copper & Gold Inc. announced Monday that it planned to privately offer US $300 million in convertible notes which would be partly used to pay the company's debt.

The company said the notes would be due in January 2006 and would be convertible, at the option of the holder, into shares of Freeport?s common stock at a conversion price to be determined on the pricing date.

According to the company?s release, a portfolio of U.S. government securities will be pledged as security for the first six scheduled interest payments on the notes. The remaining net proceeds from the offering will be used to repay a portion of Freeport?s borrowings under its bank credit facilities.

The release said the notes would only be offered to qualified institutional.

Freeport-McMoRan through its subsidiary PT Freeport Indonesia runs a giant copper and gold mine in Irian Jaya province. (alex)