McMoRan Exploration talks $400 million seven-year notes at 11%-11¼%

By Paul A. Harris

St. Louis, Nov. 7 - McMoRan Exploration Co. set price talk for its $400 million offering of seven-year senior notes (Caa1/CCC+) at 11% to 11¼% on Wednesday, according to a market source.

Pricing is expected on Thursday afternoon.

JPMorgan and Merrill Lynch & Co. are joint bookrunners for the offering, which has been registered with the Securities and Exchange Commission. BNP Paribas is the co-manager.

The notes have four years of call protection, a make-whole provision and a three-year 35% equity clawback.

Proceeds will be used to repay debt in connection with the acquisition of the Gulf of Mexico shelf oil and gas properties of Newfield Exploration Co.

The issuer is a New Orleans-based oil and gas exploration, development and production company.

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