By Paul A. Harris
St. Louis, Nov. 8 - McMoRan Exploration Co. priced a downsized $300 million issue of seven-year senior notes (Caa1/CCC+) at par to yield 11 7/8% on Thursday, according to an informed source.
The yield was printed 62.5 basis points beyond the wide end of the 11% to 11¼% price talk
The deal was downsized from $400 million.
JPMorgan and Merrill Lynch & Co. were joint bookrunners for the offering, which has been registered with the Securities and Exchange Commission. BNP Paribas is the co-manager.
Proceeds will be used to repay debt in connection with the acquisition the Gulf of Mexico shelf oil and gas properties of Newfield Exploration Co.
The issuer is a New Orleans-based oil and gas exploration, development and production company.
| Issuer: | McMoRan Exploration Co.
|
| Amount: | $300 million (decreased from $400 million)
|
| Maturity: | Nov. 15, 2014
|
| Security description: | Senior notes
|
| Bookrunners: | JPMorgan, Merrill Lynch & Co.
|
| Co-manager: | BNP Paribas
|
| Coupon: | 11 7/8%
|
| Price: | Par
|
| Yield: | 11 7/8%
|
| Spread: | 785 bps
|
| Call features: | Callable after Nov. 15, 2011 at 105.938, 102.969, par on and after Nov. 15, 2013
|
| Equity clawback: | Until Nov. 15, 2010 for 35% at 111.875
|
| Trade date: | Nov. 7
|
| Settlement date: | Nov. 14
|
| Ratings: | Moody's: Caa1
|
| Standard & Poor's: CCC+
|
| Distribution: | SEC registered
|
| Price talk: | 11% to 11¼%
|
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