LSB Industries buys back $2 million of its 5.5% convertibles due 2012

By Susanna Moon

Chicago, May 21 - LSB Industries, Inc. purchased $2 million principal amount of its 5.5% convertible senior subordinated debentures due 2012 on May 18 for $1,999,000 plus accrued interest, according to an 8-K filed Wednesday with the Securities and Exchange Commission.

The company said it will incur a nominal loss from this purchase.

The purchase price was funded from the company's working capital.

The purchase was unsolicited by the company and was privately negotiated, the release noted.

The notes are convertible at 36.4 common shares per $1,000 principal amount of the notes, or at a price of $27.47 per share. The company's common stock closed at $18.29 per share on May 18.

As of May 18, there was $27.4 million principal amount of the notes outstanding, including $5 million of notes being held by the company's chairman of the board and chief executive officer, members of his immediate family and the vice chairman and president.

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

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