Chemical Bank has won the mandate to lead $1.15 billion of financing
Chemical and Chase Manhattan are equally underwriting the two part
Separately, Chemical is leading a $650 million facility for Interstate
The two deals underscore escalating mergers and acquisitions activity,
At the same point last year, these companies might have looked to the
Freeport McMoRan Copper and Gold, a division of the Louisiana
If Freeport shareholders approve of the spinoff, they will hold equity
Freeport Resource Partners, a subsidiary of Freeport McMoRan, will use
Chemical is expected to hold a bank meeting soon to syndicate the loans.
Chase is serving as the documentation agent for Freeport, while Chemical
Market sources said that the banks will seek some co-agents on
Sources close to the deal said that pricing was expected to be
The Freeport facility is a five-year revolving credit. The success of
Chemical held a bank meeting for the $650 million facility for
Most of the facility will support the purchase of St. Louis-based
Interstate will use a portion of the facility to refinance an earlier
Sources close to the deal said that between 20 and 30 banks would
The loan is divided into a $425 million revolver and a $225 million term
The loan is priced at Libor plus 75 basis points on a drawn basis. There
Pricing on this loan is also tied to credit rating.
Sources close to the deal expect to close syndication in the middle of
The acquisition is subject to regulatory approval.