* Arranges $4 bln term loan, $3 bln revolving credit
* Funds to be used to help fund oil and gas takeover deals
Feb 19 Freeport-McMoran Copper & Gold Inc
said on Tuesday it has secured $7 billion in debt
financing to help fund its move to diversify into oil and gas.
The copper miner said it had reached deals with two bank
syndicates for a $4 billion term loan and a $3 billion revolving
Freeport, faced with a lack of high-quality new copper
deposits, agreed in December to buy Plains Exploration &
Production Co and McMoRan Exploration Co in a
bid to diversify into the U.S. energy sector. The deals, worth a
combined $9 billion, are expected to close in the second quarter
The company said it will draw on the term loan when the
takeovers close and may use it to fund the cash portion of the
deals, among other things. The loan will mature five years from
the date of borrowing.
Freeport said lender commitments under its acquisition
bridge facility had been reduced from $9.5 billion to $5.5
billion in connection with the completion of the term loan.
The $3 billion revolving credit facility replaces an
existing $1.5 billion revolving credit facility.