Freeport-McMoRan (NYSE: FCX) secures new $3.0B credit facility to 2031
Filing Impact
Filing Sentiment
Form Type
8-K
Rhea-AI Filing Summary
Freeport-McMoRan Inc. entered into a new five-year, $3.0 billion senior unsecured revolving credit facility with a syndicate of banks, replacing its prior $3.0 billion facility. The new agreement, which includes PT Freeport Indonesia as a borrower, matures on May 14, 2031.
The facility maintains a $500 million limit on PT Freeport Indonesia’s borrowing capacity and a $1.5 billion sublimit for letters of credit. At termination of the prior facility, there were no borrowings and about $5 million in letters of credit, which were rolled into the new facility.
Interest is based on the Term Secured Overnight Financing Rate or an Alternate Base Rate, plus a spread tied to Freeport-McMoRan’s credit ratings. The agreement includes covenants restricting additional subsidiary indebtedness, liens, sale and leaseback deals, mergers and asset sales, and requires a total leverage ratio not above 3.75 to 1.00.
Positive
- None.
Negative
- None.
8-K Event Classification
4 items: 1.01, 1.02, 2.03, 9.01
4 items
Item 1.01
Entry into a Material Definitive Agreement
Business
The company signed a significant contract such as a merger agreement, credit facility, or major partnership.
Item 1.02
Termination of a Material Definitive Agreement
Business
A significant contract was terminated, which may affect business operations or revenue.
Item 2.03
Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement
Financial
The company incurred a new significant debt or off-balance-sheet obligation.
Item 9.01
Financial Statements and Exhibits
Exhibits
Financial statements, pro forma financial information, and exhibit attachments filed with this report.
Key Figures
New revolver size: $3.0 billion
Prior revolver size: $3.0 billion
PTFI borrowing limit: $500 million
+5 more
8 metrics
New revolver size
$3.0 billion
Senior unsecured revolving credit facility
Prior revolver size
$3.0 billion
Replaced facility dated October 19, 2022
PTFI borrowing limit
$500 million
Maximum borrowing capacity for PT Freeport Indonesia
Letter of credit sublimit
$1.5 billion
Maximum letters of credit issuance under the facility
Maturity date
May 14, 2031
Final maturity of new revolving credit facility
Letters of credit at rollover
$5 million
Outstanding LCs under prior facility, rolled to new one
Leverage covenant
3.75 to 1.00
Maximum total leverage ratio required by facility
Guarantee trigger threshold
$250 million
Debt level that can trigger subsidiary guarantees
Key Terms
revolving credit facility, Term Secured Overnight Financing Rate, Alternate Base Rate, total leverage ratio, +2 more
6 terms
revolving credit facility financial
"entered into a new revolving credit agreement (the New Revolving Credit Facility)"
A revolving credit facility is a type of loan that a business can borrow from whenever it needs money, up to a set limit. It’s like having a credit card for companies—allowing them to borrow, pay back, and borrow again as needed, providing flexibility for managing cash flow or funding short-term expenses.
Term Secured Overnight Financing Rate financial
"Interest on loans ... may ... be determined based on the Term Secured Overnight Financing Rate"
Alternate Base Rate financial
"be determined based on the Term Secured Overnight Financing Rate or the Alternate Base Rate"
total leverage ratio financial
"financial covenant requiring FCX to maintain a total leverage ratio not to exceed 3.75 to 1.00"
sale and leaseback transactions financial
"restrict the ability ... to: create liens on assets; enter into sale and leaseback transactions"
letters of credit financial
"provided a $1.5 billion sublimit on the issuance of letters of credit"
A letter of credit is a promise from a bank to pay a seller if the buyer fails to do so, commonly used in trade and large contracts to ensure payment. Think of it as a bank standing in for the buyer, like a certified check or payment insurance that reduces the risk of nonpayment. For investors, letters of credit matter because they affect a company’s cash flow, borrowing needs and contingent liabilities, and signal how much credit support a business requires to secure deals.
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 OR 15(d) of The Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): May 14, 2026
(Exact name of registrant as specified in its charter)
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Registrant's telephone number, including area code: (602 ) 366-8100
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
Securities registered pursuant to Section 12(b) of the Act:
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Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 1.01. Entry into a Material Definitive Agreement.
On May 14, 2026, Freeport-McMoRan Inc. (FCX) and PT Freeport Indonesia (PTFI), a subsidiary of FCX, as borrowers, JPMorgan Chase Bank, N.A., as administrative agent, Bank of America, N.A., as syndication agent, and each of the lenders and issuing banks party thereto entered into a new revolving credit agreement (the New Revolving Credit Facility).
The New Revolving Credit Facility replaced FCX’s prior $3.0 billion senior unsecured revolving credit facility, dated as of October 19, 2022 which was scheduled to mature in October 2027. The prior credit facility had a $500 million limit on PTFI’s borrowing capacity and provided a $1.5 billion sublimit on the issuance of letters of credit. At the time of termination, there were no borrowings outstanding and approximately $5 million in letters of credit issued under the prior revolving credit facility, which was rolled to the New Revolving Credit Facility.
The New Revolving Credit Facility is substantially similar to the prior revolving credit facility and provides for a five-year, $3.0 billion senior unsecured revolving credit facility, with a $500 million limit on PTFI’s borrowing capacity, and a $1.5 billion sublimit on the issuance of letters of credit. The New Revolving Credit Facility matures on May 14, 2031.
Interest on loans made under the New Revolving Credit Facility may, at the option of FCX or PTFI, be determined based on the Term Secured Overnight Financing Rate or the Alternate Base Rate (each as defined in the New Revolving Credit Facility), plus a spread to be determined by reference to a grid based on FCX’s credit ratings.
Consistent with the prior revolving credit facility, the New Revolving Credit Facility contains various negative covenants that, among other things and subject to certain exceptions, restrict the ability of FCX’s subsidiaries that are not borrowers or guarantors to incur additional indebtedness (including guarantee obligations) and the ability of FCX or FCX’s subsidiaries to: create liens on assets; enter into sale and leaseback transactions; engage in mergers, liquidations and dissolutions; and sell assets. In addition, the New Revolving Credit Facility contains a financial covenant requiring FCX to maintain a total leverage ratio not to exceed 3.75 to 1.00. The New Revolving Credit Facility also contains customary affirmative covenants and representations.
If any subsidiary of FCX (other than a borrower under the New Revolving Credit Facility) guarantees certain indebtedness of FCX and/or any subsidiary exceeding $250 million, the New Revolving Credit Facility will be unconditionally guaranteed by such subsidiary with certain specified exceptions for foreign subsidiaries and foreign subsidiary holding companies. PTFI’s aggregate liability exposure under the New Revolving Credit Facility is capped at $500 million.
Certain of the lenders and agents under the New Revolving Credit Facility, and their respective affiliates have in the past engaged, and may in the future engage, in transactions with FCX and its affiliates, and have in the past performed, and may in the future perform, services, including commercial banking, financial advisory, investment banking and other commercial services, for FCX and its affiliates, in the ordinary course of business for which they have received or will receive customary fees and expenses.
The foregoing description of the New Revolving Credit Facility is not intended to be complete and is qualified in its entirety by reference to the New Revolving Credit Facility, a copy of which is attached hereto as Exhibit 10.1, and is incorporated herein by reference.
Item 1.02. Termination of a Material Definitive Agreement.
The information in Item 1.01 of this Form 8-K is hereby incorporated by reference into this Item 1.02.
Item 2.03. Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant.
The information in Item 1.01 of this Form 8-K is hereby incorporated by reference into this Item 2.03.
Item 9.01. Financial Statements and Exhibits.
(d) Exhibits.
| Exhibit Number | Exhibit Title | ||||
10.1 | Revolving Credit Agreement dated as of May 14, 2026, among Freeport-McMoRan Inc., PT Freeport Indonesia, JPMorgan Chase Bank, N.A., as administrative agent, Bank of America, N.A., as syndication agent, and each of the lenders and issuing banks party thereto. | ||||
| 104 | The cover page from this Current Report on Form 8-K, formatted in Inline XBRL. | ||||
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
Freeport-McMoRan Inc.
By: /s/ Douglas N. Currault II
----------------------------------------
Douglas N. Currault II
Executive Vice President and General Counsel
(authorized signatory)
Date: May 20, 2026
FAQ
What is the size of Freeport-McMoRan (FCX)'s new revolving credit facility?
Freeport-McMoRan entered a new senior unsecured revolving credit facility of $3.0 billion. This replaces a prior facility of the same size and provides company-wide liquidity support, including a borrowing capacity for PT Freeport Indonesia within that overall limit.
When does Freeport-McMoRan (FCX)'s new credit facility mature?
The new revolving credit facility for Freeport-McMoRan matures on May 14, 2031. This extends the company’s committed bank financing beyond the prior facility’s scheduled October 2027 maturity, helping keep a longer-dated source of backup liquidity in place.
How does the new FCX credit agreement treat PT Freeport Indonesia borrowings?
Under the new revolving credit facility, PT Freeport Indonesia has a borrowing limit of $500 million. This mirrors the prior agreement’s structure, allowing direct borrowing by the subsidiary while capping its exposure within the wider $3.0 billion commitment.
What letter of credit capacity does Freeport-McMoRan (FCX) have under the new facility?
The new revolving credit facility provides a $1.5 billion sublimit for letters of credit. About $5 million of letters of credit outstanding under the prior facility were rolled into the new agreement, keeping those instruments supported by the updated structure.
What leverage covenant applies under Freeport-McMoRan (FCX)'s new facility?
The credit agreement requires Freeport-McMoRan to maintain a total leverage ratio not exceeding 3.75 to 1.00. This covenant limits how much debt the company can carry relative to defined earnings, helping lenders manage credit risk within the facility.
How is interest determined on Freeport-McMoRan (FCX)'s new revolving loans?
Interest on loans under the new facility is based on either the Term Secured Overnight Financing Rate or an Alternate Base Rate, plus a spread. The spread is set using a grid linked to Freeport-McMoRan’s credit ratings, so stronger ratings generally mean lower costs.