OKLAHOMA CITY--(BUSINESS WIRE)--Jul. 1, 2016--
LSB Industries, Inc. (NYSE:LXU) (“LSB” or the “Company”) today announced
the closing of the previously disclosed sale of its Climate Control
Business (“CCB”) to NIBE Industrier AB (publ) of Sweden (“NIBE”) for a
total of $364 million. The Company plans to use the net proceeds of the
sale to repay its outstanding debt, redeem its preferred stock, or a
combination of the two.
Dan Greenwell, LSB’s President and CEO, stated, “We are pleased to have
completed the divestiture of the Climate Control Business at an
attractive valuation. This transaction transforms LSB into a pure-play
chemical company, and enables us to improve our capital structure. We
expect this, combined with the recent start-up of a new ammonia plant at
our El Dorado Facility, and our progress on improving the on-stream
rates at our other facilities to translate into improved value for our
shareholders. Once again, I would like to thank the CCB employees for
their hard work and dedication and wish them well in their future with
NIBE.”
About LSB Industries, Inc.
LSB Industries, Inc., headquartered in Oklahoma City, Oklahoma,
manufactures and sells chemical products for the agricultural, mining,
and industrial markets. The Company owns and operates facilities in
Cherokee, Alabama, El Dorado, Arkansas and Pryor, Oklahoma, and operates
a facility for Covestro AG in Baytown, Texas. LSB’s products are sold
through distributors and directly to end customers throughout the United
States. Additional information about the Company can be found on its
website at www.lsbindustries.com.
Forward Looking Statement
This press release includes certain forward-looking statements within
the meaning of the Private Securities Litigation Reform Act of 1995.
These forward-looking statements generally are identified by use of the
words “will”, “believes”, “expects”, “estimates”, “intends”,
“anticipates”, “plans to”, “should”, “estimates”, “projects”, or similar
expressions, including, without limitation, LSB’s plans and expectations
with respect to the divestiture of CCB; pay down of debt; improved
financial flexibility, capital structure, and chemical plant on-stream
rates; enhanced reliability, performance, profitability and generation
of cash flow from our facilities; and continued investment in
improvement of plants.
Investors are cautioned that such forward-looking statements are not
guarantees of future performance and involve risk and uncertainties.
Though we believe that expectations reflected in such forward-looking
statements are reasonable, we can give no assurance that such
expectation will prove to be correct. Actual results may differ
materially from the forward-looking statements as a result of various
factors, including, but not limited to: general economic conditions;
weather conditions; increased costs to complete the El Dorado project;
ability to install necessary equipment and renovations at our Facilities
in a timely manner; changes to federal legislation or adverse
regulations; increased competitive pressures, domestic and foreign;
ability to complete transactions to address our leveraged balance sheet
and cash flow requirements; loss of significant customers; increased
costs of raw materials; and other factors set forth under “Risk Factors”
and “Special Note Regarding Forward-Looking Statements” in our Form 10-K
for the year ended December 31, 2015 and, if applicable, our Quarterly
Reports on Form 10-Q and our Current Reports on Form 8-K, which contain
a discussion of a variety of factors which could cause future outcomes
to differ materially from the forward-looking statements contained in
this release. All forward-looking statements included in this press
release are expressly qualified in their entirety by such cautionary
statements. 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 except
as required by applicable law.
View source version on businesswire.com: http://www.businesswire.com/news/home/20160701005772/en/
Source: LSB Industries, Inc.
LSB Industries, Inc.
Mark Behrman, 405-235-4546
Chief
Financial Officer
or
Investor Relations:
The
Equity Group Inc.
Fred Buonocore, 212-836-9607
Kevin Towle,
212-836-9620
