Debt and Equity

6 Months Ended

Jun. 30, 2019

DEBT AND EQUITY

The components of debt follow (in millions):



	June 30, 2019			December 31, 2018
Senior notes and debentures:
Issued by FCX	$	8,595		$	9,594
Issued by Freeport Minerals Corporation (FMC)	357			358
Cerro Verde credit facility	825			1,023
Other	139			166
Total debt	9,916			11,141
Less current portion of debt	(4		)	(17		)
Long-term debt	$	9,912		$	11,124

Revolving Credit Facility. At June 30, 2019, there were no borrowings outstanding and $13 million in letters of credit issued under FCX’s revolving credit facility, resulting in availability of approximately $3.5 billion, of which approximately $1.5 billion could be used for additional letters of credit.

On May 2, 2019, FCX’s $3.5 billion revolving credit facility was amended to extend $3.26 billion of the facility by one year to April 20, 2024. The remaining $240 million matures on April 20, 2023. In addition, the revolving credit facility was amended to modify the calculation of the total debt component used to determine the total leverage ratio by increasing the amount of unrestricted cash that may be applied to reduce the amount of total debt. There were no other substantive modifications to the revolving credit facility.

Senior Notes. On March 27, 2019, FCX redeemed all of its outstanding $1.0 billion aggregate principal amount of 3.100% Senior Notes due 2020. Holders of these senior notes received the principal amount together with the redemption premium and accrued and unpaid interest up to the redemption date. As a result of this redemption, FCX recorded a loss on early extinguishment of debt totaling $5 million in first-quarter 2019.

Cerro Verde Credit Facility. In March 2019, Cerro Verde prepaid $200 million of its credit facility, which resulted in a $1 million loss recorded to early extinguishment of debt in first-quarter 2019.

Interest Expense, Net. Consolidated interest costs totaled $167 million in second-quarter 2019, $165 million in second-quarter 2018, $345 million for the first six months of 2019 and $341 million for the first six months of 2018. Capitalized interest added to property, plant, equipment and mine development costs, net, totaled $35 million in second-quarter 2019, $23 million in second-quarter 2018, $67 million for the first six months of 2019 and $48 million for the first six months of 2018.

Common Stock. On June 26, 2019, FCX declared a quarterly cash dividend of $0.05 per share on its common stock, which was paid on August 1, 2019, to common stockholders of record as of July 15, 2019.