New Issue: Maurel & Prom upsized €375 million convertible to yield 3.5%, up 32%

By Ronda Fears

Nashville, March 2 - French oil concern Maurel & Prom SA sold an upsized €375 million of five-year convertible bonds in the Oceane structure at par to yield 3.5% with a 32% initial conversion premium via lead managers BNP Paribas and Natexis Banques Populaires SA, according to market sources.

The issue, upped from €270 million, priced at the aggressive end of price talk for a 3.5% to 4.0% coupon and 27% to 32% initial conversion premium.

When Maurel & Prom announced plans to issue a convertible in early February, the company indicated proceeds would be used for acquisitions. The company itself, however, also has been the target for acquisitions, such as the $1 billion unsolicited bid from Indian Oil Corp. Ltd. that was rejected by Maurel & Prom last week.

Terms of the issue are:

Issuer:	Maurel & Prom SA
Issue:	Convertible Oceane bonds
Lead managers:	BNP Paribas and Natexis Banques Populaires SA
Amount:	€375 million, up from €270 million
Greenshoe:	€40 million
Maturity:	Jan. 1, 2010
Coupon:	3.5%
Price:	Par
Conversion premium:	32%
Conversion price:	€22.4004
Conversion ratio:	44.6421
Contingent conversion:	No
Contingent payment:	No
Call:	With 150% trigger until January 2008, then with 125% trigger
Price talk:	3.5-4.0%, up 27-32%
Pricing date:	March 1

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