LSB calls its $3.25 convertible preferreds

By Susanna Moon

Chicago, July 12 - LSB Industries, Inc. said it would redeem all of its outstanding $3.25 convertible exchangeable class C preferred stock, series 2.

The redemption date is Aug. 27. As of July 12, there were 193,295 shares outstanding.

The company will pay $50 per share plus $26.25 in dividends accrued up to the redemption date.

Holders can convert their shares into LSB stock at a rate of 4.329 shares. LSB stock closed at $22.18 Thursday.

UMB Bank NA is the exchange agent.

On March 13, the company announced the issue of 2,262,971 shares in exchange for 305,807 shares of its $3.25 preferreds. The exchange ended at 5 p.m. ET on March 12.

In the deal, the company offered shares of common stock for up to 309,807 of the then 499,102 outstanding shares of its $3.25 convertible preferreds.

Holders of the exchanged shares waived a total of $7.3 million in accrued dividends, or $23.975 per share.

On March 6, the company said it obtained shareholder approval to amend the certificate of designation for the preferreds - one condition of the offer.

LSB is an Oklahoma City-based manufacturer of climate-control products.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.