|Over a week ago|
Short Interest Report: New York Times shorts squeezed by breakout » 16:3310/1510/15/21
BGFV, FUV, LXU, MSTR, PHAS, BOLT, NYT, SDC
Welcome to this week’s…
LSB Industries falls -8.8% » 12:0010/1310/13/21
LSB Industries is down…
LSB Industries is down -8.8%, or -85c to $8.91.
LSB Industries provides update on NYSE trading halt and dividend impact » 07:3010/1310/13/21
As LSB Industries,…
As LSB Industries, previously announced, the NYSE halted trading on LSB's common stock on October 12 in order to address the impact on the stock price of the dividend paid by the company on October 8 to shareholders of record on September 24 of 0.30 shares of LSB common stock for every share owned. Before trading began on the October 12 ex-dividend date, the NYSE communicated, via an NYSE Group Info Notice, that LSB's 0.3:1 common stock dividend applied to all approximately 79.4M of the company's shares of common stock that were outstanding prior to the dividend payment date. That was incorrect. In actuality, the stock dividend was paid on only approximately 30.4M of LSB's outstanding shares of common stock. The other approximately 49.1M shares of the total outstanding common shares were issued to LSB Funding, an affiliate of Eldridge, in the exchange transaction that closed on September 27 and since they were not issued prior to the September 24 record date, were not eligible to receive the stock dividend. The company believes the distribution of the incorrect information in the NYSE's Group Info Notice led to a 30% downward adjustment to its closing stock price on October 11. In addition to halting the trading of LSB's common stock the morning of October 12 during the trading day on October 12, the NYSE issued an update to its prior Group Info Notice regarding the Company's stock dividend that rescinded their prior Group Info Notice; correctly stated that the approximately 49.1M shares of common stock issued to LSB Funding in the exchange transaction did not receive the stock dividend that was paid on October 8 and that stated, "the price adjustment should be reflective of shares outstanding prior to the exchange offer." Thus, confirming that the stock dividend only resulted in an approximate 11.5% increase in the number of shares of the company's common stock outstanding on the dividend payment date of October 8. The company believes that the most accurate way to assess the impact of the stock dividend on its common stock price on October 12 would be to divide the number of shares issued for the special stock dividend of approximately 9.2M shares by the approximately 79.4M shares outstanding prior to the issuance of the company's stock dividend, which equates to an estimated 11.5% impact on the company's stock price, or a reduction of the stock's October 11 closing price of $12.83 to approximately $11.35. As of October 12, after giving effect to the consummation of the exchange transaction and the issuance of shares in the common stock dividend, the company had approximately 88.6M shares of common stock outstanding, consistent with the level projected in the company's September 27 press release announcing the closing of the exchange transaction.
LSB Industries trading resumes 15:4010/1210/12/21
NYSE halts shares of LSB Industries due to stock dividend price adjustment » 13:4610/1210/12/21
LSB Industries, announced…
LSB Industries, announced that the New York Stock Exchange halted trading on LSB's common stock in order to address the stock price adjustment applied to the company's common stock as a result of the fact that the 49,066,005 shares of common stock issued to LSB Funding LLC, an affiliate of Eldridge, in the exchange transaction that closed on September 27, 2021 did not receive the dividend because such shares were not outstanding on the dividend record date of September 24, 2021. LSB said "We are currently working with the NYSE to address the stock price adjustment in order to enable the Company's common stock to commence trading."
LSB Industries trading halted, news pending 09:2210/1210/12/21
LSB Industries rises 5.1% » 10:0009/2409/24/21
LSB Industries is up…
LSB Industries is up 5.1%, or 56c to $11.56.
|Over a month ago|
Glass Lewis recommends LSB stockholders vote for exchange agreement » 07:3809/1509/15/21
LSB Industries announced…
LSB Industries announced that independent proxy advisory firm, Glass Lewis, has recommended that LSB shareholders vote for all of the proposals in the Definitive Proxy Statement filed by the Company on August 26, relating to the Company's agreement with LSB Funding an affiliate of Eldridge Industries to exchange the shares of LSB Series E-1 and Series F-1 Redeemable Preferred Stock held by Eldridge for shares of LSB common stock. Glass Lewis, in its report dated September 14, 2021, indicates that "Here, we understand that the proposed exchange agreement was arrived at following a strategic review process and following considerable discussions and negotiations with Eldridge. For its part, the board formed a special committee of independent directors to oversee this process and worked with outside legal and financial advisors. The proposed exchange would remove LSB Lender's right to require the Company to pay in 2023 approximately $419M of liquidation value that would be due under the Preferred Shares at that time and would provide greater financial flexibility, including to pursue future merger and acquisition transactions. The board states that the proposed exchange would improve the Company's capital structure and credit metrics and simplify its balance sheet with the removal of the Preferred Shares. The exchange is expected to reduce the Company's net debt leverage from 9.0x to 5.6x its adjusted EBITDA as of June 30 on a trailing twelve month basis and would not involve any cash consideration, preserving cash and avoiding additional leverage that could be used for other strategic initiatives . . . . Overall, we find that the proposed exchange appears reasonable to the Company and its shareholders. Based on these factors and the support of the board, we believe the exchange agreement is in the best interest of shareholders."
ISS recommends LSB shareholders vote for exchange transaction » 07:3609/0909/09/21
LSB Industries announced…
LSB Industries announced that independent proxy advisory firm, Institutional Shareholder Services , has recommended that LSB shareholders vote for all of the proposals in the Definitive Proxy Statement filed by the Company on August 26 relating to the Company's agreement with LSB Funding LLC, an affiliate of Eldridge Industries, to exchange the shares of LSB Series E-1 and Series F-1 Redeemable Preferred Stock held by Eldridge for shares of LSB common stock. Commenting on the ISS recommendation, Mark Behrman, LSB's President and CEO, stated, "We view the favorable disposition of ISS towards our proposed exchange transaction as further validation of our belief that this transaction will be beneficial to LSB's shareholders in that it will lower our cost of capital and provide us with greater financial flexibility to pursue growth initiatives. We strongly urge LSB stockholders to follow the ISS recommendation and vote 'FOR' the transaction today."
Jefferies to hold a virtual summit » 04:5509/0109/01/21
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Semiconductor, IT Hardware & Communications Infrastructure Virtual Summit 2021 will be held on August 31-September 1.