Freeport-McMoRan Copper & Gold Inc. (NYSE: FCX) has completed its at-the-market offering of common stock. FCX raised $750 million in gross proceeds through the sale of 26.8 million shares of FCX common stock in open market transactions at an average price of $28 per share.
James R. Moffett, Chairman of the Board, and Richard C. Adkerson, President and Chief Executive Officer, said: “The proceeds from this equity offering, together with the actions we have taken to reduce costs and capital expenditures, place FCX in a strong financial position during this period of weak economic conditions. We are well situated with our flexible operating structure, which enables us to adjust operations to adapt to varying market conditions while preserving our long-lived reserves and future growth options. We are confident that our assets and the important metals we produce will allow shareholders to realize substantial values over time.”
The offering generated net proceeds of approx. $740 million, which will be used for general corporate purposes, including the repayment of amounts outstanding under FCX’s revolving credit facilities, working capital and capital expenditures. J.P. Morgan Securities Inc. acted as FCX’s sales agent for these transactions.
The shares were issued pursuant to FCX’s shelf registration statement. Prospectus supplements relating to the common stock offering were filed with the Securities and Exchange Commission on Jan. 26th, 2009 and Feb. 12th, 2009.
After giving effect to this offering, FCX will have approximately 411 million shares of common stock outstanding and approx. 476 million shares of common stock outstanding assuming conversion of FCX’s remaining 5½% Convertible Perpetual Preferred Stock and 6¾% Mandatory Convertible Preferred Stock.