McMoRan Exploration prices upsized $75 million perpetual convertible preferreds to yield 8%, up 19%

New York, June 16 - McMoRan Exploration Co. priced an upsized $75 million of perpetual convertible preferred stock after the market close Tuesday with a dividend of 8% and a 19% initial conversion premium.

The deal was increased from a planned $50 million and came near the cheap end of talk, which guided for a dividend of 7.5% to 8% and an initial conversion premium of 18% to 22%.

McMoran Exploration also priced 14.5 million shares at $5.75 per share, up from the planned 11 million shares.

The preferreds have a conversion price of $6.85 and convert into 11 million shares.

They have a greenshoe of $11.25 million, increased from $7.5 million.

The preferreds can be called starting June 15, 2014 subject to the company's stock trading above 130% of the conversion price for 20 out of 30 consecutive trading days.

Settlement is scheduled for June 22.

J.P. Morgan Securities Inc. is the bookrunner for the offering. The registered offerings are being made under an existing shelf.

The stock offering has a greenshoe for 2.175 million shares.

Proceeds are earmarked to fund capital expenditures and for general corporate purposes.

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

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