McMoRan Exploration holders convert $23.1 million of 6% convertibles

By Angela McDaniels

Tacoma, Wash., Feb. 26 - McMoRan Exploration Co. has induced or agreed to induce the conversion of $23.1 million of its 6% convertible senior notes due July 2, 2008 into 1.62 million shares of common stock, according to an 8-K report filed with the Securities and Exchange Commission on Tuesday.

The conversions are the result of a series of privately negotiated transactions reached from Feb. 20 through Feb. 26. McMoRan said it paid or will pay a total of $0.7 million to the noteholders in connection with the conversions.

The conversions will reduce the principal amount of the notes outstanding to $77.8 million and will result in $0.7 million of interest cost savings in the first half of 2008, according to the filing.

McMoRan is a New Orleans-based oil and gas exploration, development and production company.

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