Past year: ▲ 32%(8.53 – 16.75 USD)
Each one in plain English, with the numbers worked through for a shareholder.
13 Sept 2012capital raising announcement● Neutral
On September 13, 2012, McMoRan again extended its 5¼% convertible notes, exchanging $67,832,000 of the notes due 2012 for new notes due October 6, 2013 at the same $16.575 conversion price, and said it intends to repay the remaining $345,000 at the October 6, 2012 maturity. The press release says about 162 million common shares are outstanding, or about 224 million if all convertibles and preferred stock were converted.
11 Oct 2011capital raising announcement● Neutral
On October 6, 2011, McMoRan swapped $68,177,000 of its 5¼% convertible notes due Oct 2011 for new 5¼% convertible notes due October 6, 2012, and repaid the remaining $6,543,000 in cash at maturity. The new notes keep the $16.575 conversion price, so this pushes the maturity back a year and resolves the open 2011 notes thread.
9 Sept 2011capital raising announcement● Neutral
On September 8, 2011, McMoRan's subsidiary bought out Whitney Exploration's interests under a 2009 exploration agreement, including a 2.97% working interest in Davy Jones and a 2% working interest in Blackbeard East, for $10 million cash and 2,835,158 McMoRan shares, and assumed Whitney's obligations. McMoRan agreed to register the shares for resale within 30 days; this increases McMoRan's share of those prospects and adds shares to the count.
1 July 2010capital raising announcement● Neutral
McMoRan induced conversion of a further 16,574 shares (about 43% of those outstanding) of its 8% convertible preferred into about 2.4 million common shares, paying $3.3 million in cash. The filing says this saves about $1.3 million a year in dividends and leaves about 22,000 8% preferred shares, 1.6 million shares of 6¾% mandatory convertible preferred and about 95.5 million common shares outstanding; this continues the February 2010 conversions.
5 Feb 2010capital raising announcement● Neutral
McMoRan agreed privately to induce conversion of about 43,000 shares (49%) of the 8% convertible preferred issued in 2009 into about 6.2 million common shares, paying $7.9 million in cash to the holders. The filing says this saves about $3.4 million a year in preferred dividends and leaves about 92 million common shares and about 44,000 preferred shares outstanding, so existing shareholders are diluted somewhat in exchange for lower dividend costs.
22 Sept 2008capital raising announcement● NeutralMajor
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.
17 Apr 2008capital raising announcement● Neutral
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.
26 Feb 2008capital raising announcement● Neutral
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.
27 Feb 2006capital raising announcement● Neutral
McMoRan induced another $7.1 million of 6% notes to convert into 0.5 million shares. For Q1 2006 the 6% notes are down $29.1 million in total and the 5¼% notes by $25.0 million. It paid $4.3 million cumulatively, expects a net charge of about $4.0 million, and estimates annual interest savings of about $3.1 million. Shares outstanding are now about 28.3 million, so dilution continues.
14 Feb 2006capital raising announcement● Neutral
McMoRan induced further conversions of $7.0 million of its 6% notes and $25.0 million of its 5¼% notes into 2.0 million shares. It paid $3.9 million, expects a net charge of about $3.6 million in Q1 2006, and estimates cumulative annual interest savings of about $2.6 million. Shares outstanding rise to about 27.8 million. This continues the January conversions, and the $25.0 million of 5¼% notes retired is part of the Oct 2004 issue.
6 Feb 2006capital raising announcement● Neutral
McMoRan induced holders to convert $15 million of its $130 million of 6% convertible notes due 2008 into 1,052,631 shares at $14.25. It paid $0.9 million, expects a roughly $0.9 million first-quarter charge, and estimates annual interest savings of about $0.9 million. Shares outstanding rise to about 25.7 million, so existing shareholders are diluted. The 6% notes were not in the earlier context, so this is the first mention of them.
7 Oct 2004capital raising announcement● NeutralMajor
McMoRan closed the private sale of $140 million of 5¼% convertible senior notes due 2011 on October 6, 2004, including $25 million from the initial purchasers' option, which completes the offering announced on October 4. The notes convert at $16.575 per share, so shareholders could be diluted on conversion. U.S. government securities are pledged for the first six interest payments, and the company must file a resale registration statement. The press release also mentions 7.1 million common shares sold, versus the 6.2 million (plus a 930,000-share option) previously reported, which is consistent with the overallotment option having been exercised (inference).
4 Oct 2004capital raising announcement● NeutralMajor
On September 30, 2004, McMoRan agreed to sell 6.2 million common shares at $12.75 each (net proceeds about $74 million, with a 930,000-share overallotment option) and $140 million of 5¼% convertible senior notes due 2011, convertible at $16.575 per share. Existing shareholders are diluted by the new shares and potentially by conversion of the notes; a portfolio of U.S. government securities will be pledged to cover the first six interest payments. Proceeds are intended for near-term drilling, the Main Pass Energy Hub project, and working capital. This is the first new debt after the 2002 debt repayments.
