Debt and Equity

3 Months Ended

Mar. 31, 2021

DEBT AND EQUITY

The components of debt follow (in millions):


	March 31, 2021		December 31, 2020



Senior notes and debentures:
Issued by FCX	$	8,785	$	8,783
Issued by Freeport Minerals Corporation (FMC)	356		356

Cerro Verde Term Loan	524		523

Other	144		49
Total debt	9,809		9,711
Less current portion of debt	(656)		(34)
Long-term debt	$	9,153	$	9,677

Revolving Credit Facility. At March 31, 2021, FCX had no borrowings outstanding and approximately $10 million in letters of credit issued under its 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. Availability under FCX’s revolving credit facility consists of $3.28 billion maturing April 2024 and $220 million maturing April 2023.

In March 2021, FCX delivered a Covenant Reversion Notice (as defined in the third amendment to the revolving credit facility dated June 3, 2020), which provided notification of its election to end the Covenant Increase Period (as defined in the third amendment to the revolving credit facility dated June 3, 2020). As a result, the leverage ratio limit reverted to 5.25x through the quarter ending June 30, 2021 (stepping down to 3.75x beginning with the quarter ending September 30, 2021), and the interest expense coverage ratio minimum reverted to 2.25x. Additionally, following FCX’s election to end the Covenant Increase Period, the additional limits on priority debt and liens, and the provisions related to minimum liquidity and restricted payments (which included restrictions on the payment of common stock dividends) are no longer applicable. At March 31, 2021, FCX was in compliance with its revolving credit facility covenants.

Interest Expense, Net. Consolidated interest costs (before capitalization) totaled $160 million in first-quarter 2021 and $171 million in first-quarter 2020. Capitalized interest added to property, plant, equipment and mine development costs, net, totaled $15 million in first-quarter 2021 and $44 million in first-quarter 2020. The decrease in capitalized interest in first-quarter 2021, compared with first-quarter 2020, is primarily related to significant assets at PT-FI’s underground mines being placed in service.

Common Stock. In February 2021, FCX’s Board of Directors (the Board) reinstated a cash dividend on FCX’s common stock. On March 24, 2021, FCX declared a quarterly cash dividend of $0.075 per share on its common stock, which was paid on May 3, 2021, to common stockholders of record as of April 15, 2021.