View:
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
SCHEDULE 13D
Under the Securities Exchange Act of 1934
(Amendment No. 1)*
LSB Industries, Inc.
- --------------------------------------------------------------------------------
(Name of Issuer)
Common Stock, par value $.10 per share
- --------------------------------------------------------------------------------
(Title of Class of Securities)
502160104
- --------------------------------------------------------------------------------
(CUSIP Number)
Louis J. Bevilacqua, Esq.
Cadwalader, Wickersham & Taft
100 Maiden Lane
New York, New York 10038
(212) 504-6057
- --------------------------------------------------------------------------------
(Name, Address and Telephone Number of Person Authorized to Receive Notices and
Communications)
October 14, 1997
- --------------------------------------------------------------------------------
(Date of Event which Requires Filing of this Statement)
If the filing person has previously filed a statement on Schedule 13G to report
the acquisition which is the subject of this Schedule 13D, and is filing this
schedule because of Rule 13d-1(b)(3) or (4), check the following box |_|.
Note: Six copies of this statement, including all exhibits, should be filed with
the Commission. See Rule 13d-1(a) for other parties to whom copies are to be
sent.
*The remainder of this cover page shall be filled out for a reporting person's
initial filing on this form with respect to the subject class of securities, and
for any subsequent amendment containing information which would alter
disclosures provided in a prior cover page.
The information required on the remainder of this cover page shall not be deemed
to be "filed" for the purpose of Section 18 of the Securities Exchange Act of
1934 ("Act") or otherwise subject to the liabilities of that section of the Act
but shall be subject to all other provisions of the Act (however, see the
Notes).
- -----------------------------------
CUSIP No. 502160104 13D
- -----------------------------------
- ------- ------------------------------------------------------------------------
1 NAME OF REPORTING PERSON Wynnefield Partners Small Cap Value L.P.
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
13-3688497
- ------- ------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (See Instructions)
(a) |X| (b) |_|
- ------- ------------------------------------------------------------------------
3 SEC USE ONLY
- ------- ------------------------------------------------------------------------
4 SOURCE OF FUNDS (See Instructions)
WC
- ------- ------------------------------------------------------------------------
5 CHECK IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO
ITEMS 2(d) or 2(e) |_|
- ------- ------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
Delaware
- -------- -----------------------------------------------------------------------
7 SOLE VOTING POWER
425,720
------ ---------------------------------------------------
NUMBER OF 8 SHARED VOTING POWER
SHARES 0
BENEFICIALLY
OWNED BY
------ ---------------------------------------------------
EACH 9 SOLE DISPOSITIVE POWER
REPORTING 425,720
PERSON
WITH
------ ---------------------------------------------------
10 SHARED DISPOSITIVE POWER
0
- ------- ------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
425,720
- ------- ------------------------------------------------------------------------
12 CHECK IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES
(See Instructions) |_|
- ------- ------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
3.3%
- ------- ------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON (See Instructions)
PN
- ------- ------------------------------------------------------------------------
- ------- ------------------------------------------------------------------------
1 NAME OF REPORTING PERSON Wynnefield Partners Small Cap Value L.P. I
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
13-3953291
- ------- ------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (See Instructions)
(a) |X| (b) |_|
- ------- ------------------------------------------------------------------------
3 SEC USE ONLY
- ------- ------------------------------------------------------------------------
4 SOURCE OF FUNDS (See Instructions)
WC
- ------- ------------------------------------------------------------------------
5 CHECK IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO
ITEMS 2(d) or 2(e) |_|
- ------- ------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
Delaware
- ------- ------------------------------------------------------------------------
7 SOLE VOTING POWER
214,780
------ ---------------------------------------------------
NUMBER OF 8 SHARED VOTING POWER
SHARES 0
BENEFICIALLY
OWNED BY
------ ---------------------------------------------------
EACH 9 SOLE DISPOSITIVE POWER
REPORTING 214,780
PERSON
WITH
------ ---------------------------------------------------
10 SHARED DISPOSITIVE POWER
0
- ------- ------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
214,780
- ------- ------------------------------------------------------------------------
12 CHECK IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES
(See Instructions) |_|
- ------- ------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
1.7%
- ------- ------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON (See Instructions)
PN
- ------- ------------------------------------------------------------------------
- ------- ------------------------------------------------------------------------
1 NAME OF REPORTING PERSON Channel Partnership II L.P.
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
22-3215653
- ------- ------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (See Instructions)
(a) |X| (b) |_|
- ------- ------------------------------------------------------------------------
3 SEC USE ONLY
- ------- ------------------------------------------------------------------------
4 SOURCE OF FUNDS (See Instructions)
WC
- ------- ------------------------------------------------------------------------
5 CHECK IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO
ITEMS 2(d) or 2(e) |_|
- ------- ------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
New York
- ------- ------------------------------------------------------------------------
7 SOLE VOTING POWER
24,000
------ ---------------------------------------------------
NUMBER OF 8 SHARED VOTING POWER
SHARES 0
BENEFICIALLY
OWNED BY
------ ---------------------------------------------------
EACH 9 SOLE DISPOSITIVE POWER
REPORTING 24,000
PERSON
WITH
------ ---------------------------------------------------
10 SHARED DISPOSITIVE POWER
0
- ------- ------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
24,000
- ------- ------------------------------------------------------------------------
12 CHECK IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES
(See Instructions) |_|
- ------- ------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
0.2%
- ------- ------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON (See Instructions)
PN
- ------- ------------------------------------------------------------------------
- ------- ------------------------------------------------------------------------
1 NAME OF REPORTING PERSON Wynnefield Small Cap Value Offshore Fund Ltd
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
- ------- ------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (See Instructions)
(a) |X| (b) |_|
- ------- ------------------------------------------------------------------------
3 SEC USE ONLY
- ------- ------------------------------------------------------------------------
4 SOURCE OF FUNDS (See Instructions)
WC
- ------- ------------------------------------------------------------------------
5 CHECK IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO
ITEMS 2(d) or 2(e) |_|
- ------- ------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
Cayman Islands
- ------- ------------------------------------------------------------------------
7 SOLE VOTING POWER
145,500
------ ---------------------------------------------------
NUMBER OF 8 SHARED VOTING POWER
SHARES 0
BENEFICIALLY
OWNED BY
------ ---------------------------------------------------
EACH 9 SOLE DISPOSITIVE POWER
REPORTING 145,500
PERSON
WITH
------ ---------------------------------------------------
10 SHARED DISPOSITIVE POWER
0
- ------- ------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
145,500
- ------- ------------------------------------------------------------------------
12 CHECK IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES
(See Instructions) |_|
- ------- ------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
1.1%
- ------- ------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON (See Instructions)
PN
- ------- ------------------------------------------------------------------------
- ------- ------------------------------------------------------------------------
1 NAME OF REPORTING PERSON Nelson Obus
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
###-##-####
- ------- ------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (See Instructions)
(a) |X| (b) |_|
- ------- ------------------------------------------------------------------------
3 SEC USE ONLY
- ------- ------------------------------------------------------------------------
4 SOURCE OF FUNDS (See Instructions)
PF
- ------- ------------------------------------------------------------------------
5 CHECK IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO
ITEMS 2(d) or 2(e) |_|
- ------- ------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
U.S.A.
- ------- ------------------------------------------------------------------------
7 SOLE VOTING POWER
20,000
------ ---------------------------------------------------
NUMBER OF 8 SHARED VOTING POWER
SHARES 0
BENEFICIALLY
OWNED BY
------ ---------------------------------------------------
EACH 9 SOLE DISPOSITIVE POWER
REPORTING 20,000
PERSON
WITH
------ ---------------------------------------------------
10 SHARED DISPOSITIVE POWER
0
- ------- ------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
20,000
- ------- ------------------------------------------------------------------------
12 CHECK IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES
(See Instructions) |_|
- ------- ------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
0.2%
- ------- ------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON (See Instructions)
IN
- ------- ------------------------------------------------------------------------
This Amendment No. 1 to Schedule 13D amends Items 3, 5 and 7 of the
Schedule 13D, dated September 4, 1997 (the "Original Schedule 13D"), filed by
the Reporting Persons to reflect subsequent purchases of Common Stock by
Wynnefield, Wynnefield I and Wynnefield Offshore. Capitalized terms not
otherwise defined herein shall have the meanings ascribed to such terms in the
Original Schedule 13D.
Item 3. Source and Amount of Funds or Other Consideration.
Item 3 is amended by appending the following thereto:
The source of the $426,623.20 used by Wynnefield to purchase its additional
89,375 shares of Common Stock was its working capital. The source of the
$253,773.21 used by Wynnefield I to purchase its additional 53,125 shares of
Common Stock was its working capital. The source of the $93,463.84 used by
Wynnefield Offshore to purchase its additional 19,800 shares of Common Stock was
its working capital. No funds were borrowed by any of PersonsWynnefield,
Wynnefield I or Wynnefield Offshore in connection with its purchases of Common
Stock.
Item 5. Interest in Securities of the Issuer.
Item 5(a) is amended by appending the following:
As of the date of this Amendment No. 1: Wynnefield is the beneficial owner
of 425,720 shares of Common Stock, or 3.3% of the outstanding Common Stock;
Wynnefield I is the beneficial owner of 214,780 shares of Common Stock, or 1.7%
of the outstanding Common Stock; Wynnefield Offshore is the beneficial owner of
1 45,500 shares of Common Stock, or 1.1% of the outstanding Common Stock; and
the Reporting Persons are the beneficial owner of 830,000 shares of Common
Stock, or 6.5% of the outstanding Common Stock.
Item 5(b) is amended by appending the following:
As of the date of this Amendment No. 1: Wynnefield has the sole power to
vote, or to direct the vote of, 425,720 shares of Common Stock and the sole
power to dispose of, or to direct the disposition of, 425,720 shares of Common
Stock; Wynnefield I has the sole power to vote, or to direct the vote of,
214,780 shares of Common Stock and the sole power to dispose of, or to direct
the disposition of, 214,780 shares of Common Stock; Wynnefield Offshore the sole
power to vote, or to direct the vote of, 145,500 shares of Common Stock and the
sole power to dispose of, or to direct the disposition of, 145,500 shares of
Common Stock; and the Reporting Persons have the sole power to vote, or to
direct the vote of, 830,000 shares of Common Stock and the sole power to dispose
of, or to direct the disposition of, 830,000 shares of Common Stock.
Item 5(c) is amended by appending the following:
No. of Price per
Reporting Person Date Shares Purchased Share
- ---------------- ---- ---------------- ---------
Wynnefield................ 09/04/97 32,175 $4.8402
09/25/97 5,200 4.6000
09/30/97 3,200 4.4481
10/06/97 12,800 4.5953
10/14/97 36,000 4.8310
Wynnefield I.............. 09/04/97 17,325 4.8402
09/25/97 2,800 4.6000
09/30/97 1,800 4.4481
10/06/97 7,200 4.5953
10/14/97 24,000 4.8310
Wynnefield Offshore........ 09/04/97 10,500 4.8402
09/26/97 2,500 4.5750
09/29/97 400 4.3750
09/30/97 400 4.4481
10/03/97 3,000 4.5500
10/07/97 3,000 4.6750
All of the foregoing purchases were made in the open market through
broker-dealers.
Item 7. Material to Be Filed as Exhibits.
Exhibit 99.1 -- Joint Filing Agreement.
Exhibit 99.2 -- Letter from the Reporting Persons to the Chairman of
the Board and President of the Company, dated
September 4, 1997.*
Exhibit 99.3 -- Letter from the Reporting Persons to the Board of Directors
of the Company, dated September 4, 1997.*
Exhibit 99.4 -- Letter from the Reporting Persons to the Special Committee
of the Board of Directors of the Company, dated
October 17, 1997.
* Previously filed.
SIGNATURE
After reasonable inquiry and to the best of my knowledge and belief, I
certify that the information set forth in this statement is true, complete and
correct.
Date: October 17, 1997
WYNNEFIELD PARTNERS SMALL CAP VALUE L.P.
By: WYNNEFIELD CAPITAL MANAGEMENT, LLC,
as general partner
By: /S/ NELSON OBUS
-------------------------
Nelson Obus
Managing Member
WYNNEFIELD PARTNERS SMALL CAP VALUE L.P. I
By: WYNNEFIELD CAPITAL MANAGEMENT, LLC,
as general partner
By: /S/ NELSON OBUS
-------------------------
Nelson Obus
Managing Member
CHANNEL PARTNERSHIP II L.P.
By: /S/ NELSON OBUS
-------------------------
Nelson Obus
General Partner
WYNNEFIELD SMALL CAP VALUE OFFSHORE FUND LTD
By: WYNNEFIELD CAPITAL, INC.,
as general partner
By: /S/ NELSON OBUS
-------------------------
Nelson Obus
President
/S/ NELSON OBUS
-------------------------
Nelson Obus
The Amendment No. 1 to Schedule 13D, relating to the common stock, par
value $.10 per share, of LSB Industries, Inc., dated October 17, 1997, is filed
on behalf of Wynnefield Partners Small Cap Value L.P., Wynnefield Partners Small
Cap Value L.P. I, Channel Partnership II L.P., Wynnefield Small Cap Value
Offshore Fund Ltd and Nelson Obus.
Dated: October 17, 1997
WYNNEFIELD PARTNERS SMALL CAP VALUE L.P.
By: WYNNEFIELD CAPITAL MANAGEMENT, LLC,
as general partner
By: /S/ NELSON OBUS
-------------------------
Nelson Obus
Managing Member
WYNNEFIELD PARTNERS SMALL CAP VALUE L.P. I
By: WYNNEFIELD CAPITAL MANAGEMENT, LLC,
as general partner
By: /S/ NELSON OBUS
-------------------------
Nelson Obus
Managing Member
CHANNEL PARTNERSHIP II L.P.
By: /S/ NELSON OBUS
-------------------------
Nelson Obus
General Partner
WYNNEFIELD SMALL CAP VALUE OFFSHORE FUND LTD
By: WYNNEFIELD CAPITAL, INC.,
as general partner
By: /S/ NELSON OBUS
-------------------------
Nelson Obus
President
/S/ NELSON OBUS
-------------------------
Nelson Obus
WYNNEFIELD PARTNERS SMALL CAP VALUE L.P.
WYNNEFIELD PARTNERS SMALL CAP VALUE L.P. I
CHANNEL PARTNERSHIP II L.P.
WYNNEFIELD SMALL CAP VALUE OFFSHORE FUND LTD
NELSON OBUS
ONE PENN PLAZA
SUITE 4720
NEW YORK, NEW YORK 10119
October 17, 1997
Mr. Bernard G. Ille
Chairman
Special Committee of the Board of Directors
LSB Industries, Inc.
11044 Magnolia Park
Oklahoma City, OK 73120
Dear Mr. Ille:
I am in receipt of a September 29 letter from Mr. Gary W. Derrick of
Derrick & Briggs in Oklahoma City detailing the creation of a Special Committee
chaired by you to consider SLB Corporation's preferred stock proposal. I applaud
the creation of such a committee to insure appropriate oversight of what appears
to me to be a most controversial proposal.
As mentioned in my letter to the Board of September 4, 1997, I am very
serious about being given an opportunity to present an alternative proposal to
the Special Committee. To this end, I request from the Special Committee
information detailing LSB's need for a cash infusion at this time. With this in
hand, I will prepare our proposal and expect an opportunity to meet with the
Special Committee to discuss our proposal. If you choose not to cooperate with
me along these suggested lines, I intend to move forward with an unsolicited
proposal.
I look forward to hearing from you at your earliest convenience.
Sincerely,
WYNNEFIELD PARTNERS SMALL CAP VALUE L.P.
By: WYNNEFIELD CAPITAL MANAGEMENT, LLC,
as general partner
By: /S/ NELSON OBUS
-------------------------
Nelson Obus
Managing Member
WYNNEFIELD PARTNERS SMALL CAP VALUE L.P. I
By: WYNNEFIELD CAPITAL MANAGEMENT, LLC,
as general partner
By: /S/ NELSON OBUS
-------------------------
Nelson Obus
Managing Member
CHANNEL PARTNERSHIP II L.P.
By: /S/ NELSON OBUS
-------------------------
Nelson Obus
General Partner
WYNNEFIELD SMALL CAP VALUE OFFSHORE FUND LTD
By: WYNNEFIELD CAPITAL, INC.,
as general partner
By: /S/ NELSON OBUS
-------------------------
Nelson Obus
President
/S/ NELSON OBUS
-------------------------
Nelson Obus