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Xstrata subsidiary Falconbridge announces further capital management initiatives
XSTRATA'S SUBSIDIARY FALCONBRIDGE ANNOUNCES FURTHER CAPITAL MANAGEMENT INITIATIVES
Zug & Toronto, 1 November 2006
Xstrata plc will continue to pursue capital management initiatives to reduce further the level of subsidiary indebtedness within the Xstrata Group.
To this end Xstrata’s subsidiary Falconbridge Limited (“Falconbridge”) gave an early redemption notice on the adjustable rate convertible subordinated debentures due April 30, 2007, and all such debentures were either converted into Falconbridge common shares or redeemed in full on 2 October 2006.
On 15 September 2006, Falconbridge also issued a notice of redemption for all Series F (TSX: FAL.PR.F) and Series G (TSX: FAL.PR.G) outstanding Cumulative Redeemable Preferred Shares and Cumulative Preferred Shares, Series 1. These series will be redeemed today.
As part of this ongoing initiative, Xstrata and Falconbridge may implement various debt restructuring options, including the provision of Xstrata guarantees for the Falconbridge bonds and may from time to time purchase Falconbridge bonds in the market.
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Forward-Looking Information
Certain statements contained in this News Release are forward-looking statements (as defined in applicable securities legislation). Inherent in forward-looking statements are risks and uncertainties well beyond our ability to predict and control. Actual results and developments are likely to differ, and may differ materially, from those expressed or implied by the forward-looking statements contained in this News Release. Xstrata specifically disclaims any obligation to update these forward-looking statements. These forward-looking statements should not be relied upon as representing the company's views as of any date subsequent to the date of this news release.
This is not an offer to purchase or a solicitation of offers to purchase or sell any Falconbridge bonds or other securities.