LSB Industries bought back $17 million 5.5% convertibles since Nov. 10

By Jennifer Chiou

New York, Dec. 5 - LSB Industries, Inc. said it has purchased $17 million of its 5.5% convertible senior subordinated debentures due 2012 for $11.6 million plus accrued interest since Nov. 10.

The purchases were funded from working capital.

The figure includes an additional $2 million of repurchases since the last one announced on Nov. 24, leaving $43 million outstanding.

The notes are convertible at 36.4 common shares per $1,000 principal amount of the notes, or at a rate of $27.47 per share. The closing price of the company's stock (NYSE: LXU) was $7.74 per share on Dec. 5.

The company said it has also adopted a renewed preferred share purchase rights plan to replace its 1999 preferred share rights plan expiring on Jan. 5 - also the date the new rights plan shall become effective.

As part of the new rights plan, the board of directors has declared a dividend distribution of one preferred share purchase right on each LSB common share.

Under the new rights plan, the rights will be exercisable only if a person or group acquires beneficial ownership of 15% or more of LSB's common stock or announces a tender or exchange offer, the consummation of which would result in ownership by a person or group of 15% or more of the stock. Jack E. Golsen, chairman of the board and president of LSB, and certain members of his family are the exceptions.

Each right under the new rights plan will entitle shareholders to buy one one-hundredth of a share of a new series of participating preferred stock at an exercise price of $47.75. Each one one-hundredth of a share of such new preferred stock purchasable upon exercise of a right has economic terms designed to approximate the value of one common share.

If LSB is acquired in a merger or other business combination transaction, each right under the new rights plan will entitle its holder to purchase a number of the acquiring company's common shares having a market value at the time of twice the right's exercise price.

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

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