By Devika Patel
Knoxville, Tenn., Sept. 20 - McMoRan Exploration Co. said it arranged a private placement of $200 million in seven-year 4% convertible senior notes and $700 million in 5.75% convertible perpetual preferred stock.
Freeport-McMoRan Copper & Gold Inc. will buy $500 million of the preferreds.
The 4% notes will be convertible into 12.5 million common shares, which is equivalent to a conversion price of $16.00 per share. The conversion price is a 13.15% premium to $14.14, the closing price of the stock on Sept. 14, the day before the pricing date.
The preferreds will be convertible into 43.75 million shares, which is also equivalent to a conversion price of $16.00 per share.
Proceeds will be used to fund future capital expenditures associated with McMoRan's expanded asset base and for general corporate purposes.
The placement will be completed following the company's planned acquisition of Plains Exploration & Production Co.'s shallow-water Gulf of Mexico shelf assets.
McMoRan is a New Orleans-based oil and gas driller with operations in the Gulf of Mexico and on shore along the Gulf Coast.
| Issuer: | McMoRan Exploration Co.
|
| Issue: | Convertible senior notes and convertible perpetual preferred stock
|
| Amount: | $900 million
|
| Investor: | Freeport-McMoRan Copper & Gold Inc. (for $500 million)
|
| Pricing date: | Sept. 15
|
| Stock symbol: | NYSE: MMR
|
| Stock price: | $14.57 at close Sept. 17
|
|
|
| Notes
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| Amount: | $200 million
|
| Maturity: | Seven years
|
| Coupon: | 4%
|
| Price: | Par
|
| Yield: | 4%
|
| Conversion ratio: | Into 12.5 million shares
|
| Conversion premium: | 13.15%
|
| Conversion price: | $16.00
|
|
|
| Preferreds
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| Amount: | $700 million
|
| Dividends: | 5.75%
|
| Conversion ratio: | Into 43.75 million shares
|
| Conversion premium: | 13.15%
|
| Conversion price: | $16.00
|
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