By Rebecca Melvin
New York, June 17 - 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.
Some terms of the placement were previously published in the June 17 edition of the Prospect News Convertibles Daily.
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.
There is 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.
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.
| Issuer: | McMoRan Exploration Co.
|
| Issue: | Convertible perpetual preferred shares
|
| Amount: | $75 million, upsized from $50 million
|
| Greenshoe: | $11.25 million, upsized from $7.5 million
|
| Maturity: | Perpetual
|
| Bookrunner: | J.P. Morgan Securities Inc.
|
| Concurrent offering: | $83.38 million of common stock
|
| Dividend: | 8%
|
| Price: | Par
|
| Yield: | 8%
|
| Conversion premium: | 19%
|
| Conversion price: | About $6.85
|
| Conversion ratio: | 146.1454
|
| Price talk: | 7.5%-8%, up 18%-22%
|
| Calls: | Non-callable until June 15, 2014, subject to 130% price hurdle for 20 out of 30 consecutive trading days
|
| Pricing date: | June 16
|
| Settlement date: | June 22
|
| Distribution: | Registered
|
| Stock symbol: | NYSE: MMR
|
| Stock reference: | $5.79
|
| Market capitalization: | $394.7 million
|
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