Acquisition of Freeport-McMoRan on Phelps Dodge to create the largest publicly traded copper company in the world. JPMorgan and Merrill Lynch advised the buyer and arranged $ 17.5 billion in debt financing and $ 1.5 billion in credit facilities. In addition, the two firms guarantee $ 5 billion in capital through simultaneous offers Freeport-McMoRan common stock and mandatory convertible preferred shares. This funding created an optimal capital structure for the company, which led to a strong credit rating. Activity on the equity markets and the Group's sales in the underwriting firm studied the structure and benefits of mandatory convertible preferred stock is due. "Hide
by David P. Stowell, Peter Rossmann Source: Kellogg School Management 19 pages. Publication Date: December 31, 2007. Prod. #: KEL345-PDF-ENG
