S&P UPGRADES RATINGS ON TWO MAGMA COPPER ISSUES
S&P UPGRADES RATINGS ON TWO MAGMA COPPER ISSUES TUCSON, Ariz., Nov. 15 /PRNewswire/ -- Magma Copper Company
(AMEX: MCU) announced today that Standard & Poor's Corp. has upgraded its ratings on both of Magma's public subordinate debt issues to "BB-" and its rating on Magma's senior debt to "BB+".
The company's Copper Interest-Indexed Senior Subordinated Notes and Subordinated Reset Debentures total $210 million and $100 million, respectively, and are listed on the American Stock Exchange where they trade under the symbols "MCUC" and "MCUD". J. Burgess Winter, president and chief executive officer, said "We are particularly pleased that S&P has raised these ratings at this time. Their decision tangibly acknowledges the progress Magma has made since its 1988 Recapitalization to reorganize the company as a lower-cost integrated copper producer positioned to compete effectively in world markets." In upgrading Magma's credit rating, S&P cited, among other factors, Magma's "substantial progress" over the past three years "in improving its operating efficiency", a "recently-signed, innovative labor agreement" and "initiatives to extend reserve life." The rating agency also pointed to Magma's "significant cash position ($142 million at Sept. 30), coupled with a manageable debt load at present, |this~ affords the company a considerable measure of financial flexibility", the report concluded. "S&P's decision was made with a full knowledge of the possible non-cash accounting adjustments announced earlier today," Winter said, "which would, of course, have no impact on our cash balances or cash flow." The indexed interest rate on its Copper Interest-Indexed Senior Subordinated Notes due 1998 (AMEX: MCUC), for the quarterly period ending Feb. 15, 1992, is 14.6 percent per annum. Magma Copper Company, one of the largest primary copper producers in the United States, produces high-quality copper cathode and rod for sale to customers worldwide. Magma has operations in San Manuel, Miami, Superior and Humboldt, Arizona and Ely, Nev. Corporate headquarters are in Tucson. -0- 11/15/91 /CONTACT: Richard P. Johnson, corporate treasurer of Magma Copper, 602-575-5760/ (MCU MCUC MCUD) CO: Magma Copper Company ST: Arizona IN: SU: CH -- SD004 -- 1627 11/15/91 14:45 EST
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|Date:||Nov 15, 1991|
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