McMoRan Clinches $170MM in Equity Financings

McMoRan has completed approximately $170 million in equity financings, through the sale of 14.5 million shares of common stock at $5.75 per share and 86,250 shares of 8.00% convertible perpetual preferred stock at $1,000 per share. The amounts sold include 11,250 shares of 8.00% convertible perpetual preferred stock issued pursuant to the underwriters’ exercise of their over-allotment option in full. The underwriters have an option to purchase from McMoRan up to an additional 2.175 million common shares to cover over-allotments, if any.

These offerings generated gross proceeds, before underwriting discounts and expenses, of approximately $170 million. McMoRan intends to use the net proceeds of approximately $162 million from these offerings for general corporate purposes, including capital expenditures.

The 8.00% convertible perpetual preferred stock will be convertible into approximately 12.6 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 stock offering. The conversion rate will be subject to anti-dilution adjustments in certain circumstances and the 8.00% convertible perpetual 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. The first dividend date will be August 15, 2009.

After giving effect to these offerings, McMoRan will have approximately 85 million shares of common stock outstanding and approximately 110 million after assuming conversion of McMoRan's newly issued 8.00% convertible perpetual preferred stock and the outstanding 6 3/4% mandatory convertible preferred stock. Total debt as of March 31, 2009 totaled $375 million, including $75 million in convertible senior notes due in 2011 with a conversion price of $16.575 per share.


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