McMoRan greenshoe lifts 6.75% mandatory convertible preferreds to $258.75 million

By Devika Patel

Knoxville, Tenn., Nov. 7 - Underwriters for McMoRan Exploration Co.'s issue of 6.75% mandatory convertible preferred stock due Nov. 15, 2010 exercised their $33.75 million over-allotment option in full, increasing the size of the issue to $258.75 million.

As previously reported, the company originally priced $225 million of the preferreds on Nov. 1 via joint bookrunners JPMorgan and Merrill Lynch with an initial conversion premium of 20%. The deal was upsized from a planned $150 million.

The convertible preferreds will be convertible into between 17.4 million and 20.9 million shares. The shares will automatically convert on the maturity date. Holders may elect to convert at any time before then at a conversion rate of 6.7204 shares per each preferred.

McMoRan also said it has closed its previously announced offering of 16.9 million common shares at $12.40 per share, which includes a 637,500 share greenshoe.

Proceeds from both deals will be used to repay debt.

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

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