Freeport-McMoRan Oil & Gas LLC opened a tender offer of $1.66 billion, in aggregate principal amount, of senior notes. Parent company, Phoenix-based Freeport-McMoRan Inc. (FCX), said Dec. 4 that Freeport-McMoran Oil & Gas had accepted $1.14 billion, in aggregate principal amount, of the notes for total aggregate consideration of $1.26 billion.
The company accepted for purchase 6.125% senior notes due 2019, 6.5% senior notes due 2020, 6.625% senior notes due 2021, 6.75% senior notes due 2022 and 6.875% senior notes due 2023.
The offer was funded through proceeds from the parent company’s completed Nov. 14 issuance of $3 billion in senior notes. Proceeds from this sale will also fund the 2015 scheduled maturities, the company said. These include scheduled term loan amortization and $500 million in 1.40% Senior Notes due 2015. It will also fund $300 million in 7.625% senior notes due 2020, and the proceeds’ balance will repay bank debt.
Dec. 5 is the day the notes for purchase are expected to settle, and the tender offer is scheduled to close Dec. 18.
BofA Merrill Lynch and J.P. Morgan Securities LLC are joint lead dealer managers, and BNP Paribas Securities Corp. is co-dealer manager, the company said. D.F. King & Co. Inc. is information agent and tender agent.
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