McMoRan Exploration Co. - 2010-09-20

Plans to privately issue $900 million in convertible securities upon completion of its $818-million acquisition of Plains Exploration & Production Co.'s shallow-water Gulf of Mexico shelf assets. The private placement will include $200 million of 7-year 4% convertible senior notes and $700 million of 5 3/4% convertible perpetual preferred stock. A group of institutional investors has agreed to purchase 44% of the securities and Freeport-McMoRan Copper & Gold Inc. has agreed to purchase 56% of the securities. The private investors will purchase the notes and $200 million of the preferred stock, and Freeport-McMoRan will purchase $500 million of the preferred stock. The proceeds from the sales of the convertible securities will be used to fund future capital expenditures associated with McMoRan's expanded asset base and for general corporate purposes.