McMoRan converts $15 million of 6% convertible notes

By Angela McDaniels

Seattle, Feb. 6 - McMoRan Exploration Co. converted $15 million of its $130 million 6% convertible senior notes due 2008 into 1,052,631 shares of McMoRan common stock in privately negotiated transactions, according to an 8-K report filed with the Securities and Exchange Commission.

The conversion price was the $14.25 per share in the terms of the notes.

The company also paid $0.9 million in cash.

As a result of these transactions, McMoRan will record a $0.9 million charge in the first quarter of 2006 and expects to save $0.9 million in annual interest costs.

McMoRan funded about 50% of the cash payment from restricted cash held in escrow for funding of the first six semi-annual interest payments on the notes and the remaining portion with its available unrestricted cash, according to the filing.

The New Orleans-based oil and gas producer now has 25.7 million common shares outstanding.

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