McMoRan Exploration Co. Prices Offerings of 14.5 Million Shares of Common Stock & 75,000 Shares of Convertible Perpetual Pref...
June 16 2009 - 8:29PM
Business Wire
McMoRan Exploration Co. (NYSE: MMR) announced that it has priced
a public offering of 14.5 million shares of common stock at $5.75
per share. The underwriters have an option to purchase from McMoRan
up to an additional 2.175 million common shares to cover
over-allotments, if any.
McMoRan also announced today that it has concurrently priced a
public offering of 75,000 shares of convertible perpetual preferred
stock at $1,000 per share. The convertible perpetual preferred
stock will pay, when and if declared by the Board of Directors,
cash dividends at a rate of 8.00% per annum, payable quarterly. The
underwriters have an option to purchase from McMoRan up to an
additional 11,250 convertible perpetual preferred shares to cover
over-allotments, if any. The first dividend date will be August 15,
2009.
The preferred stock will be convertible into approximately 11.0
million shares of McMoRan common stock, equivalent to a conversion
price of approximately $6.84 per share of common stock, reflecting
a 19.0% conversion premium to the $5.75 per share price of the
common offering. The conversion rate will be subject to
anti-dilution adjustments in certain circumstances and the
preferred stock may not be called for redemption by McMoRan prior
to June 15, 2014, and thereafter may be called at McMoRan�s option
if McMoRan�s common stock price exceeds 130% of the conversion
price for 20 trading days within a period of 30 consecutive trading
days.
These offerings, which are expected to close on June 22, 2009,
will generate gross proceeds of $158.4 million before underwriting
discounts, expenses and the exercise of over-allotment options, if
any. McMoRan intends to use the net proceeds from these offerings
for general corporate purposes, including capital expenditures.
The book-running manager for these offerings is J.P. Morgan. The
co-managers for the common stock offering are Dahlman Rose &
Company, LLC, BNP Paribas Securities Corp, Capital One SouthCoast,
Inc., Howard Weil Incorporated, TD Securities (USA) LLC, ING
Financial Markets LLC and Piper Jaffray & Co. The co-managers
for the convertible perpetual preferred offering are Merrill Lynch,
Pierce, Fenner & Smith Incorporated and Dahlman Rose &
Company, LLC.
The offerings will be made under McMoRan�s existing shelf
registration statement filed with the Securities and Exchange
Commission on October 5, 2007. This press release is neither an
offer to sell nor a solicitation of an offer to buy any securities
and shall not constitute an offer, solicitation or sale in any
jurisdiction in which such offer, solicitation or sale would be
unlawful. Any offers of the shares of preferred or common stock
described in this press release will be made exclusively by means
of a prospectus and prospectus supplement.
Copies of the prospectus supplements and accompanying base
prospectus relating to these offerings may be obtained by
contacting J.P. Morgan Securities Inc., 4 Chase Metrotech Center, C
S Level, Brooklyn, New York 11245. Copies of the prospectus
supplements and accompanying base prospectus will also be available
on the Securities and Exchange Commission�s website at
www.sec.gov.
McMoRan Exploration Co. is an independent public company engaged
in the exploration, development and production of oil and natural
gas offshore in the Gulf of Mexico and onshore in the Gulf Coast
area.
McMoRan has filed a registration statement (including a
prospectus and prospectus supplement) with the SEC for the offering
to which this communication relates. Before you invest, you should
read the prospectus and prospectus supplement in that registration
statement and other documents McMoRan has filed with the SEC for
more complete information about McMoRan and this offering. You may
obtain these documents for free by visiting EDGAR on the SEC
website at www.sec.gov. Alternatively, the issuer, any underwriter
or any dealer participating in the offering will arrange to send
you the prospectus and the prospectus supplement if you request
them by calling J.P. Morgan Securities Inc. toll-free at
1-800-576-3529.
Mcmoran (NYSE:MMR)
Historical Stock Chart
From Jun 2024 to Jul 2024
Mcmoran (NYSE:MMR)
Historical Stock Chart
From Jul 2023 to Jul 2024