Kerr-McGee calls $600 million 5.25% convertibles

By Caroline Salls

Pittsburgh, Feb. 2 - Kerr-McGee Corp. said it will redeem all $600 million of its 5.25% convertible subordinated debentures due 2010 on March 4 at a price of 102.625% of the principal amount plus interest accrued up to but excluding the redemption date.

Holders may convert their debentures for the company's common stock before the close of business on March 2 at a conversion price of $61.0763 per share.

Kerr-McGee stock was at $62.38 Wednesday afternoon.

The company expects to fund the redemption using a combination of proceeds from short-term borrowings under its $1.5 billion revolving credit facility and proceeds from a long-term debt offering, if necessary.

Kerr-McGee is an Oklahoma City-based energy and inorganic chemical company.

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