Dig deep

Getting the biggest junk bond offering in history out the door was always going to be tricky. And the fact that the equity markets cratered the day before underwriters priced Freeport McMoRan’s $6bn deal didn’t help. Then there’s the issue itself, part of a $17bn package backing its acquisition of Phelps Dodge. It wasn’t an obvious market darling. Freeport is borrowing a pile - about one and a half times its market cap. It’s paying a huge 33% premium to capture its larger rival. And the combined...