LSB paid down $100 million of debt, redeemed preferreds last quarter

By Devika Patel

Knoxville, Tenn., Nov. 4 – LSB Industries Inc. will save $17 million per year through recent deleveraging activities, specifically paying down $100 million of senior secured debt and redeeming $80 million of preferred stock.

“A key strategic milestone during the quarter was closing on the $364 million sale of the climate control business, which occurred on July 1,” president and chief executive officer Daniel D. Greenwell said on the company’s conference call announcing its third quarter earnings on Friday.

“We then deleveraged the company with a portion of the proceeds by paying down $100 million of our senior secured debt and redeeming an aggregate of $80 million of preferred stock and accumulated dividends.”

The actions will reduce aggregate financing costs by $17 million per year, Greenwell said.

On Thursday, LSB announced that its board of directors has started a review of strategic alternatives for the company, which may include a sale of the company, a merger with another party or another strategic transaction involving some or all of the company’s assets. LSB has hired Morgan Stanley & Co. LLC as a financial advisor for the strategic review process.

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

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