By Ronda Fears
Nashville, June 27 - McMoran Exploration Corp. sold $100 million of five-year convertibles at par to yield 6.0% with a 25% initial conversion premium - at the cheap end of guidance.
Merrill Lynch was lead manager of the Rule 144A deal.
Coupon payments for three years will be collateralized with Treasuries. There also is a common dividend pass-through in the form of an adjustment to the conversion ratio.
Remaining proceeds will be used for exploratory drilling activities, for possible acquisitions, the Main Pass Energy Hub project, working capital and general corporate purposes.
Terms of the deal are:
Issuer: McMoran Exploration Corp.
| Issue: | Rule 144A convertible senior notes
|
| Lead manager: | | Merrill Lynch
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| Co-manager: | Jefferies & Co.
|
| Amount | $100 million
|
| Greenshoe: | $30 million
|
| Maturity: | July 1, 2008
|
| Dividend: | 6.0%
|
| Price: | par
|
| Yield: | 6.0%
|
| Conversion premium: | 25%
|
| Conversion price: | $14.25
|
| Conversion ratio: | 70.1754
|
| Call: | noncallable
|
| Price Talk: | 5.5-6.0%, up 25-30%
|
| Pricing Date: | June 26, after the close
|
| Settlement: | July 2
|
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