McMoRan greenshoe exercised, raising convertibles to $140 million

Pittsburgh, Oct. 4 - McMoRan Exploration Co. said the underwriters of its recent offering of 5¼% convertible senior notes due October 2011 exercised the $25 million over-allotment option in full, raising the size of the deal to $140 million.

The New Orleans-based oil and gas producer originally priced $115 million of the securities Sept. 30 to yield 5¼% with a 30% initial conversion premium.

JPMorgan and Merrill Lynch were the lead managers on the Rule 144A deal.

Proceeds will be used to purchase U.S. government securities held in escrow to pay the first six semi-annual interest payments due during the next three years, for drilling near-term oil and gas prospects, for continuing its efforts to develop the Main Pass Energy Hub project, for working capital requirements and for general corporate purposes.

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