McMoRan induces some conversion of 8% convertible perpetual preferreds

By Susanna Moon

Chicago, July 1 - McMoRan Exploration Co. holders agreed to convert $16.6 million liquidation preference of its 8% convertible perpetual preferred stock into 2.4 million common shares, according to an 8-K filing with the Securities and Exchange Commission.

The company said it induced holders of 16,574 preferreds, or 43% of the outstanding shares, in privately negotiated deals.

As an inducement for the early conversion, McMoRan will pay a total of $3.3 million in cash to the holders of the shares.

McMoRan will record about $1.3 million in annual dividend savings following the conversion.

There will be about 22,000 shares of the preferreds outstanding.

McMoRan Exploration is a New Orleans-based oil and gas driller with operations in the Gulf of Mexico and on shore along the Gulf Coast.

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