Freeport to Fund Two Separate Energy Deals Through Private Placement

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Freeport-McMoRan Cooper & Gold Inc. said that it agreed to issue senior notes via a private placement to fund its move into oil and gas production.

Though it lacks high-quality new cooper deposits, Phoenix, Arizona-based Freeport plans to acquire McMoRan Exploration Co. and Plains Exploration & Production Co. in separate deals worth $9 billion all.

Earlier this month, Freemont secured debt financing worth $7 million that includes a term load of $4 billion and a revolving credit facility worth $3 billion.

Together with the term load, the company will use the proceeds to find the deals which are due to close in the 2nd quarter of 2013.

Freeport did not provide any further details about the value of the private investment.

Tags
Mergers & acquisitions, Private placement

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