Freeport-McMoRan 2012 Annual Report Download - page 113

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Also on February 14, 2013, FCX and PT Freeport Indonesia
entered into a new senior unsecured revolving credit facility,
which will refinance and replace FCX’s existing revolving credit
facility upon completion of the proposed acquisition of PXP.
No amounts are currently available to FCX under the new
revolving credit facility. At the closing of the acquisition of PXP,
the new revolving credit facility will be available for five years
in an aggregate principal amount of $3.0 billion, with $500 million
available to PT Freeport Indonesia.
The Term Loan and new revolving credit facility both contain
customary affirmative covenants and representations, and
also contain a number of negative covenants that, among other
things, restrict, subject to certain exceptions, the ability of
FCX’s subsidiaries that are not borrowers or guarantors to incur
additional indebtedness (including guarantee obligations)
and FCX’s ability or the ability of FCX’s subsidiaries to: create
liens on assets; enter into sale and leaseback transactions;
engage in mergers, liquidations and dissolutions; and sell assets.
The Term Loan and new revolving credit facility also contain
financial ratios governing maximum total leverage and minimum
interest coverage.
FCX evaluated events after December 31, 2012, and through
the date the financial statements were issued, and determined any
events or transactions occurring during this period that would
require recognition or disclosure are appropriately addressed in
these financial statements.
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