LSB Industries, Inc. Announces Proposed Private Offering of Senior Notes
June 18 2019 - 6:50AM
Business Wire
NET PROCEEDS EXPECTED
TO BE USED FOR $20 MILLION IN ANTICIPATED CAPITAL EXPENDITURES
INTENDED TO ENHANCE MARGINS
LSB Industries, Inc. (NYSE: LXU) (“LSB”) today announced that it
intends to offer, subject to market and other conditions, $35
million aggregate principal amount of its 9.625% Senior Secured
Notes due 2023 (the “Notes”) for sale in a private placement to
eligible purchasers. The Notes constitute a further issuance of the
9.625% Senior Secured Notes due 2023, of which $400 million
aggregate principal amount was issued on April 25, 2018. The Notes
will be guaranteed on a senior secured basis by all of LSB’s
existing subsidiaries and by certain of LSB’s future domestic
wholly owned subsidiaries.
LSB intends to use the net proceeds from this offering to fund
approximately $20 million in anticipated capital expenditures over
the next 12-18 months that are intended to enhance its margins,
which may include product loading and unloading improvements, tank
storage, capital to facilitate guest plant opportunities and
efficiency projects to reduce fixed costs. The remaining net
proceeds are expected to be used for general corporate
purposes.
This press release is neither an offer to sell nor a
solicitation of an offer to buy the Notes or any other securities
and shall not constitute an offer, solicitation or sale in any
jurisdiction in which such offer, solicitation or sale is unlawful.
The Notes and the guarantees thereof have not been registered under
the Securities Act of 1933, as amended (the “Securities Act”), or
any state securities laws and may not be offered or sold in the
United States absent registration or applicable exemption from the
registration requirements under the Securities Act and applicable
state securities laws. The Notes are expected to be offered and
sold only to qualified institutional buyers pursuant to Rule 144A
under the Securities Act and to non-U.S. persons outside of the
United States pursuant to Regulation S under the Securities Act.
This press release is being issued in accordance with Rule 135c
under the Securities Act.
Forward-Looking Statements
Certain matters contained in this press release include
“forward-looking statements” within the meaning of Section 27A of
the Securities Act and Section 21E of the Securities Exchange Act
of 1934, as amended. We make these forward-looking statements in
reliance on the safe harbor protections provided under the Private
Securities Litigation Reform Act of 1995.
All statements, other than statements of
historical fact, included in this press release, including
regarding the offering of the Notes and the expected use of
proceeds from such offering, may constitute forward-looking
statements. Forward-looking statements include statements about
LSB’s expectations, beliefs, plans, objectives, intentions,
assumptions and other statements that are not historical facts.
Although we believe that the expectations reflected in these
forward-looking statements are reasonable, we cannot assure you
that these expectations will prove to be correct. These
forward-looking statements are subject to certain known and unknown
risks and uncertainties, as well as assumptions that could cause
actual results to differ materially from those reflected in these
forward-looking statements. Factors that might cause actual results
to differ include, but are not limited to, (i) LSB’s business plans
may change as circumstances warrant and the offering of the Notes
may not ultimately be completed because of general market
conditions or other factors or (ii) any of the risk factors
discussed from time to time in each of our documents and reports
filed with the Securities and Exchange Commission. Except as
required by applicable law, we expressly disclaim any obligation to
update, amend or clarify any forward-looking statement to reflect
events, new information or circumstances occurring after the date
of this press release.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20190618005495/en/
COMPANY CONTACT:Mark T. Behrman, President & CEOCheryl
Maguire, Senior Vice President & CFO(405) 235-4546
Investor Relations Contact: The Equity Group Inc.Fred Buonocore,
CFA (212) 836-9607
LSB Industries (NYSE:LXU)
Historical Stock Chart
From Mar 2024 to Apr 2024
LSB Industries (NYSE:LXU)
Historical Stock Chart
From Apr 2023 to Apr 2024