McMoRan announced an offer to exchange up to $74.7 million aggregate principal amount of 5 1/4% Convertible Senior Notes due 2011 for an equal principal amount of newly issued 5 1/4% Convertible Senior Notes due 2012, plus cash in an amount equal to the accrued and unpaid interest on the Existing Notes through October 5, 2011. The $74.7 million represents the total amount of Existing Notes outstanding. The sole purpose of the exchange offer is to extend the maturity date of the debt underlying the Existing Notes. The terms of the New Notes will be substantially identical to the terms of the Existing Notes, except that the New Notes will have a maturity date of October 6, 2012.
The exchange offer will expire at 5:00 p.m., New York City time on Wednesday, October 5, 2011 (the Expiration Date), unless earlier terminated by McMoRan. The exchange offer is being conducted upon the terms and subject to the conditions described in the exchange offer memorandum and related documents dated September 8, 2011, which are being provided to all holders of the Existing Notes. The completion of the exchange offer is conditioned on McMoRan's receipt of valid tenders, not validly withdrawn, of at least $30 million in aggregate principal amount of the Existing Notes. In addition, McMoRan expressly reserves the right to terminate the exchange offer if the per share price of McMoRan's common stock exceeds $16.575, the conversion price of the Existing Notes, at any time on or prior to the Expiration Date. The New Notes will have a different CUSIP number from the corresponding Existing Notes.
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