JPMorgan Chase’s Arrangement of $9.5 Billion Financing for FCX’s Acquisition of PXP and McMoRan Exploration Co.

On December 5, 2012, Freeport-McMoRan Copper & Gold Inc. (“FCX”), Plains Exploration & Production Company (“PXP”) and McMoRan Exploration Co. (“MMR”) announced that they have signed definitive merger agreements under which FCX will acquire PXP for approximately $6.9 billion in cash and stock. FCX will concurrently acquire MMR for approximately $3.4 billion in cash, or $2.1 billion net of 36 percent of the MMR interests currently owned by FCX and PXP. Cravath represented JPMorgan Chase Bank, N.A. as lead arranger of $9.5 billion in committed financing in connection with these transactions, which are expected to close in the second quarter of 2013.

The combined company is expected to be a premier U.S.-based natural resource company with an industry-leading global portfolio of mineral assets, significant oil and gas resources and a growing production profile.

The Cravath team included partner B. Robbins Kiessling and associates Stephen M. Kessing, Andy Ham and Evan M. D’Amico on banking matters and partner William V. Fogg and associate R. Kirkie Maswoswe on securities matters. Ali Assareh also worked on banking matters and Brent R. Tomlinson and Jennifer L. Tanaka also worked on securities matters.