On September 16, 2008 McMoRan agreed to induce conversion of about 990,000 shares of its 6.75% mandatory convertible preferred (about $99 million liquidation preference) into about 6.7 million common shares, paying $7.4 million in cash. This is about 38% of the preferred issued in November 2007; 1.6 million preferred shares ($158.9 million preference) remain and common shares total about 70.5 million. It dilutes common holders but is estimated to save about $15 million of preferred dividends through the November 2010 mandatory conversion date.
30 May 2008capital raising announcement▲ GoodMajor
From May 27 to 30, 2008 McMoRan paid $1.7 million to induce conversion of about $40 million of its 5.25% notes into about 2.4 million shares, leaving $74.8 million of those notes and about 59.3 million shares; it estimates interest savings of about $2.1 million a year. The remaining 6% notes are about $51.7 million, convertible into about 3.6 million shares, with conversion procedures to be sent to holders. A press release also announced additional pay at the Flatrock No. 3 well and a drilling update at South Timbalier Block 168, but the filing gives no details.
On April 10-11, 2008 McMoRan paid about $0.1 million to induce conversion of $7.3 million of 6% notes into about 0.5 million shares, leaving $69.1 million of those notes and about 55.6 million common shares. The filing also announces first-quarter 2008 results via a press release, but the figures are not in the filing text.
From February 20 to 26, 2008 McMoRan paid about $0.7 million to induce holders to convert roughly $23.1 million of its 6% notes into about 1.62 million common shares. $77.8 million of the 6% notes remain and common shares outstanding are about 54.9 million. Conversion reduces debt and interest cost (estimated at about $0.7 million in the first half of 2008) but adds shares.
The Ospraie Portfolio Ltd., Ospraie Management, LLC, Ospraie Holding I, L.P., Ospraie Management, Inc., Dwight Anderson reported a MCMORAN EXPLORATION CO /DE/ shareholding of 3,523,700 shares (6.83% of votes) in a periodic institutional filing.
Franklin Resources, Inc, Charles B. Johnson, Rupert H. Johnson, Jr, Franklin Advisers, Inc disclosed a new substantial MCMORAN EXPLORATION CO /DE/ shareholding (6.30% of votes).
Iridian Asset Management LLC, The Governor and Company of the Bank of Ireland, BIAM Holdings disclosed a new substantial MCMORAN EXPLORATION CO /DE/ shareholding (7.50% of votes).
FM Services, which provides McMoRan's executive and administrative services for a fixed fee, renewed director B. M. Rankin Jr.'s consulting agreement for January 1 to December 31, 2008, with unchanged terms. This continues the annual renewal already in the company's history.
The Ospraie Portfolio Ltd., Ospraie Management, LLC, Ospraie Holding I, L.P., Ospraie Management, Inc., Dwight Anderson disclosed a new substantial MCMORAN EXPLORATION CO /DE/ shareholding (6.01% of votes).
McMoRan sold $300 million of 11.875% senior notes due 2014 to underwriters (JPMorgan, Merrill Lynch, BNP Paribas), closing November 14, 2007, with net proceeds of about $292 million. The press release title says the sale fully repays the acquisition bridge loan, completing the refinancing planned at the Newfield closing. The notes add a new fixed-rate debt obligation.
On November 1, 2007 McMoRan agreed to sell 16.9 million common shares at $12.40 each and 2.59 million shares of 6.75% mandatory convertible preferred at $100 each, including overallotment shares. Closing was November 7, raising $468 million gross and about $450 million net. This is the equity part of the bridge-loan replacement flagged earlier, and it dilutes existing common holders (inference from the new share issuance).
This amendment adds the financial statements and pro forma information for the Newfield properties that the August 10 filing said would follow. The statements show revenues of $619.3 million in 2006, $738.4 million in 2005 and $713.3 million in 2004, with revenues in excess of direct operating expenses of $466.9 million, $626.3 million and $625.2 million. These are property-level figures before overhead, interest, taxes and depletion, not company profit.
Alpine Capital, L.P., Algenpar, Inc., J. Taylor Crandall, The Anne T. and Robert M. Bass Foundation, Anne T. Bass, Keystone Group, L.P., Keystone MGP, LLC, Keystone Manger, LLC, Stratton R. Heath III, Robert M. Bass reported a MCMORAN EXPLORATION CO /DE/ shareholding of 4,298,852 shares (12.40% of votes) in a periodic institutional filing.
10 Aug 2007asset acquisition disposition● NeutralMajor
McMoRan's subsidiary completed the Newfield Gulf of Mexico shelf purchase on August 6, 2007 for about $1.08 billion in cash plus the assumption of reclamation obligations, effective July 1, 2007. It was funded by a new 5-year $700 million secured revolver (about $394 million drawn at closing) and an $800 million unsecured bridge loan, and the $100 million second-lien term loan was repaid. This closes the pending Newfield deal. The company says it expects to replace the bridge with long-term notes and equity or equity-linked securities (which implies dilution - inference). The purchase price remains subject to post-closing adjustments.
On June 20, 2007, McMoRan's subsidiary agreed to buy substantially all of Newfield Exploration's Gulf of Mexico shelf properties for $1.1 billion in cash, closing expected in Q3 2007 with a July 1 effective date, subject to antitrust and Minerals Management Service approvals. It has $1.6 billion in commitments from JP Morgan and Merrill Lynch, covering an $800 million secured revolver and an $800 million bridge loan, and will repay the $100 million second-lien term loan. McMoRan expects to replace the bridge with long-term notes and equity or equity-linked securities, which implies dilution (inference). Separately, the Flatrock well at South Marsh Island 212 showed a resistive section indicating potential pay at over 14,000 feet.
