McMoRan calls 5% convertibles

By Susanna Moon

Chicago, May 29 - McMoRan Exploration Co. said it plans to redeem its 5% convertible preferred stock on June 30, according to a news release.

McMoRan will pay $25.625 per share for shares not converted into common stock before the redemption date.

Holders can convert shares into common stock at a rate of 5.1975 shares of common stock per share of convertible preferred stock equivalent to a conversion price of $4.81 per share of common stock until 5 p.m. ET on June 29. Currently, 1,193,925 shares of the 5% convertible preferred stock are outstanding. Holders as of June 15 will get a cash dividend of $0.3125 per share payable on June 30.

The company said that it expects holders to convert to common stock because the market value of the common stock is greater than the cash redemption value. The company would issue about 6.2 million shares of common stock if all convertible preferred shares were converted into common stock. Savings translate to about $1.5 million in annual preferred dividends.

McMoRan stock closed at $15.33 on May 25.

McMoRan is a New Orleans-based oil and gas exploration and production company.

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