McMoRan Exploration Co. announced that its 6% Convertible Senior Notes will mature on July 2, 2008. Currently, $51.7 million of the Notes are outstanding of the original $130 million in Notes issued in July 2003. Approximately $78 million in Notes have been previously converted to common stock.
The final interest payment on the Notes will be paid on July 2, 2008, to holders of record on June 15, 2008. Holders who convert the Notes with an effective date prior to July 2, 2008, will not be entitled to the final interest payment. Holders who convert the Notes effective July 2, 2008, will be entitled to the final interest payment.
At the option of the holder, the Notes are convertible into shares of McMoRan common stock at a conversion price of $14.25 per share, which is equal to a conversion rate of approximately 70.1754 shares of McMoRan common stock per $1,000 principal amount of the Notes. In order for holders to convert the Notes and receive the final interest payment, the Notes and conversion notice must be received prior to 5:00 p.m., Eastern Time, on July 2, 2008 and the conversion notice must be dated July 2, 2008.
If the Notes are not converted into common stock prior to the close of business on July 2, 2008, McMoRan will pay in cash the principal amount of the Notes.
As long as the market price remains above $14.25 per share, holders of the Notes will receive shares of common stock with a greater market value upon conversion than they would otherwise receive upon redemption. On May 30, 2008, the closing price of McMoRan common stock as reported on the New York Stock Exchange was $31.92 per share.
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