McMoRan exploration greenshoe exercised, raising convertibles to $130 million

New York, July 7 - McMoRan Exploration Co. said underwriters of its recent offering of convertible senior notes due 2008 exercised the $30 million over-allotment option in full, raising the size of the deal to $100 million.

The New Orleans oil and gas exploration and production company originally sold $100 million of the convertibles after the close on June 26 to yield 6% with a 25% initial conversion premium.

Merrill Lynch & Co. was lead manager for the offering.

Of the proceeds, $23 million was used to buy Treasuries to guarantee the first three years of interest payments.

The remainder will be used for exploratory drilling activities, for possible opportunities to acquire interests in oil and gas properties, for continuation of efforts on the potential Main Pass Energy Hub project, including a liquefied natural gas terminal and supporting facilities and for working capital requirements and other corporate purposes.

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