Freeport-McMoRan secures new US$3 billion revolving credit facility

By Romel S. Gurky

US copper gold firm Freeport-McMoRan Inc. and its Indonesian unit PT Freeport Indonesia have entered into a new US$3 billion senior unsecured revolving credit facility maturing in May 2031, replacing the company’s previous facility that was due to expire in October 2027.

According to a Form 8-K filing submitted to the US Securities and Exchange Commission, the new revolving credit agreement was signed on May 14, 2026 with JPMorgan Chase Bank as administrative agent and Bank of America as syndication agent.

The facility maintains a US$500 million borrowing limit for PT Freeport Indonesia and includes a US$1.5 billion sublimit for letters of credit. At the time the previous facility was terminated, there were no outstanding borrowings and around US$5 million in letters of credit, which were transferred to the new facility.

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Freeport said the new facility is substantially similar to the prior agreement and can be used for working capital and general corporate purposes, including acquisitions.

The agreement includes a financial covenant requiring Freeport-McMoRan to maintain a total leverage ratio of no more than 3.75-to-1.00. It also contains restrictions related to additional indebtedness, asset liens, mergers, asset sales and sale-and-leaseback transactions.

Interest on loans under the facility will be based on either the Term Secured Overnight Financing Rate (SOFR) or an alternate base rate, plus a spread linked to the company’s credit ratings.

Editing by Alexander Ginting