Company Website:
http://www.lsb-okc.com
OKLAHOMA CITY -- (Business Wire)
LSB Industries, Inc. (NYSE:LXU) (“LSB”) today announced that it priced
its previously announced offering of $400 million in aggregate principal
amount of senior secured notes due 2023 (the “Notes”), which will be
sold in a private placement to eligible purchasers. 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.
The Notes will bear an annual rate of interest of 9.625% and will mature
on May 1, 2023. The Notes will be issued at a price equal to 99.509% of
their face value. The Notes and the guarantees will be secured, subject
to certain exceptions and permitted liens, (a) on a first-priority basis
by a substantial portion of LSB’s and the guarantors’ assets (other than
the assets securing LSB’s working capital revolver loan), and (b) on a
second-priority basis by certain of LSB’s and the guarantors’ assets
that secure LSB’s working capital revolver loan on a first-priority
basis, including accounts receivable, inventory, and certain other
related assets and proceeds thereof. The closing of this private
offering is expected to occur on April 25, 2018, subject to customary
closing conditions.
LSB intends to use the net proceeds from this offering to repurchase
and/or redeem any and all of its outstanding $375 million aggregate
principal amount of 8.50% Senior Secured Notes due 2019 (the “Existing
Notes”), to pay related transaction fees, expenses and premiums, and, to
the extent of any remaining net proceeds, for general corporate
purposes. Pending such application of the net proceeds of this offering,
they may be invested in highly rated money market funds, U.S. government
securities, treasury bills or short-term commercial paper.
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 being offered in the
United States 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. This press release is not an offer to purchase, a
solicitation of an offer to sell or a notice of redemption with respect
to the Existing Notes.
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/20180420005246/en/
Contacts:
Company:
LSB Industries, Inc.
Mark T. Behrman, 405-235-4546
Chief
Financial Officer
or
Investor Relations:
The Equity Group
Inc.
Fred Buonocore, CFA, 212-836-9607
Kevin Towle,
212-836-9620
Source: LSB Industries, Inc.
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