LSB may call preferreds, which would then no longer be convertible

By Susanna Moon

Chicago, Jan. 3 - LSB Industries, Inc. notified holders that it may call its 461 shares of outstanding convertible noncumulative preferred stock, which are only convertible prior to the call, according to an 8-K filing with the Securities and Exchange Commission.

If the company's board of directors approves the call, the company said it will then issue a notice of redemption in February. The preferreds would cease to be convertible on the date of the notice.

The redemption price will be par of $100 per preferred or $50 for half of a preferred.

The preferreds are convertible at a rate of 40 common shares for each preferred or 20 shares for half of a preferred. This equals a conversion price of $2.50 per common share. The company's stock closed at $29.51 (NYSE: LXU) on Tuesday.

The company said management plans to present the call proposal to the board in February.

LSB is a manufacturing, marketing and engineering company based in Okalahoma City.

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