McMoRan Exploration issues 3.6 million shares in exchange for $54.1 million convertibles

By Jennifer Chiou

New York, April 20 - McMoRan Exploration Co. said it has converted $29.1 million of its 6% convertible notes and $25.0 million of its 5¼% convertible notes in privately negotiated transactions since the beginning of 2006.

In exchange, the New Orleans-based oil and gas producer issued 3.6 million shares.

McMoRan said it also paid $4.3 million in the transactions, funding $3.5 million of the cash payment from restricted cash held in escrow for the first six semi-annual interest payments on the convertible notes. The remainder came from available cash.

The company noted the annual interest cost savings will be $3.1 million and said it now has 28.3 million shares outstanding.

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