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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D. C. 20549
SCHEDULE 13D
Amendment No. 3
Under the Securities Exchange Act of 1934
LSB Industries, Inc.
(Name of Issuer)
Common Stock, Par Value $.10 Per
Share
(Title of Class of Securities)
502160104
(CUSIP Number)
Nelson Obus, Wynnefield Partners Small Cap Value, L.P.
One Penn Plaza, Suite 4720, New York, New York 10119, (212) 760-0814
and
Jesse R. Meer, Esq.
Berlack, Israels & Liberman LLP,
120 West 45th Street, New York, N.Y. 10036, (212) 704-0100
(Name, Address and Telephone Number of Persons Authorized to
Receive Notices and Communications)
May 6, 1999
(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-I(b)(3) or (4), check the following box |_|.
Check the following box if a fee is being paid with the statement |_|. (A fee is
not required only if the reporting person (1) has a previous statement on file
reporting beneficial ownership of more than five percent of the class of
securities described in Item 1; and (2) has filed no amendment subsequent
thereto reporting beneficial ownership of five percent or less of such class.)
(See Rule 13d-7.)
(Page 1 of 8 Pages)
Amendment No. 3 to SCHEDULE 13D
- ------------------------- -------------------
CUSIP No. 502160104 Page 2 of 8 Pages
- ------------------------- -------------------
- --------------------------------------------------------------------------------
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 (a) |x|
(b) |_|
- --------------------------------------------------------------------------------
3 SEC USE ONLY
- --------------------------------------------------------------------------------
4 SOURCE OF FUNDS
WC
- --------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS
(2)(d) or (e) |_|
- --------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OR ORGANIZATION
Delaware
- --------------------------------------------------------------------------------
NUMBER OF 7 SOLE VOTING POWER
SHARES
BENEFICIALLY 235,620
OWNED BY ------------------------------------------------------
EACH 8 SHARED VOTING POWER
REPORTING
PERSON None
WITH ------------------------------------------------------
9 SOLE DISPOSITIVE POWER
235,620
------------------------------------------------------
10 SHARED DISPOSITIVE POWER
None
- --------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
235,620 shares
- --------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES |_|
- --------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
2
- --------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON
PN
- --------------------------------------------------------------------------------
(Page 2 of 8 Pages)
Amendment No. 3 to SCHEDULE 13D
- ------------------------- -------------------
CUSIP No. 502160104 Page 3 of 8 Pages
- ------------------------- -------------------
- --------------------------------------------------------------------------------
1 NAME OF REPORTING PERSON: Wynnefield 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 (a) |x|
(b) |_|
- --------------------------------------------------------------------------------
3 SEC USE ONLY
- --------------------------------------------------------------------------------
4 SOURCE OF FUNDS
WC
- --------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS
(2)(d) or (e) |_|
- --------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OR ORGANIZATION
Cayman Islands
- --------------------------------------------------------------------------------
NUMBER OF 7 SOLE VOTING POWER
SHARES
BENEFICIALLY 204,680
OWNED BY ------------------------------------------------------
EACH 8 SHARED VOTING POWER
REPORTING
PERSON None
WITH ------------------------------------------------------
9 SOLE DISPOSITIVE POWER
204,680
------------------------------------------------------
10 SHARED DISPOSITIVE POWER
None
- --------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
204,680 shares
- --------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES |_|
- --------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
1.7
- --------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON
PN
- --------------------------------------------------------------------------------
(Page 3 of 8 Pages)
Amendment No. 3 to SCHEDULE 13D
- ------------------------- -------------------
CUSIP No. 502160104 Page 4 of 8 Pages
- ------------------------- -------------------
- --------------------------------------------------------------------------------
1 NAME OF REPORTING PERSON: Wynnefield Small Cap Value Offshore Fund, Ltd.
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON: Not Applicable
- --------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a) |x|
(b) |_|
- --------------------------------------------------------------------------------
3 SEC USE ONLY
- --------------------------------------------------------------------------------
4 SOURCE OF FUNDS
WC
- --------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS
(2)(d) or (e) |_|
- --------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OR ORGANIZATION
Cayman Islands
- --------------------------------------------------------------------------------
NUMBER OF 7 SOLE VOTING POWER
SHARES
BENEFICIALLY 83,900
OWNED BY ------------------------------------------------------
EACH 8 SHARED VOTING POWER
REPORTING
PERSON None
WITH ------------------------------------------------------
9 SOLE DISPOSITIVE POWER
83,900
------------------------------------------------------
10 SHARED DISPOSITIVE POWER
None
- --------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
83,900 shares
- --------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES |_|
- --------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
.7
- --------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON
CO
- --------------------------------------------------------------------------------
(Page 4 of 8 Pages)
Amendment No. 3 to SCHEDULE 13D
- ------------------------- -------------------
CUSIP No. 502160104 Page 5 of 8 Pages
- ------------------------- -------------------
- --------------------------------------------------------------------------------
1 NAME OF REPORTING PERSON: Channel Partnership II
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON: 22-3215653
- --------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a) |x|
(b) |_|
- --------------------------------------------------------------------------------
3 SEC USE ONLY
- --------------------------------------------------------------------------------
4 SOURCE OF FUNDS
WC
- --------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS
(2)(d) or (e) |_|
- --------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OR ORGANIZATION
Delaware
- --------------------------------------------------------------------------------
NUMBER OF 7 SOLE VOTING POWER
SHARES
BENEFICIALLY 24,000
OWNED BY ------------------------------------------------------
EACH 8 SHARED VOTING POWER
REPORTING
PERSON None
WITH ------------------------------------------------------
9 SOLE DISPOSITIVE POWER
24,000
------------------------------------------------------
10 SHARED DISPOSITIVE POWER
None
- --------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
24,000 shares
- --------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES |_|
- --------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
.2
- --------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON
PN
- --------------------------------------------------------------------------------
(Page 5 of 8 Pages)
Amendment No. 3 to SCHEDULE 13D
- ------------------------- -------------------
CUSIP No. 502160104 Page 6 of 8 Pages
- ------------------------- -------------------
- --------------------------------------------------------------------------------
1 NAME OF REPORTING PERSON: Nelson Obus
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON (Entities Only):
- --------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a) |x|
(b) |_|
- --------------------------------------------------------------------------------
3 SEC USE ONLY
- --------------------------------------------------------------------------------
4 SOURCE OF FUNDS
PF
- --------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS
(2)(d) or (e) |_|
- --------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OR ORGANIZATION
United States
- --------------------------------------------------------------------------------
NUMBER OF 7 SOLE VOTING POWER
SHARES
BENEFICIALLY 20,000
OWNED BY ------------------------------------------------------
EACH 8 SHARED VOTING POWER
REPORTING
PERSON None
WITH ------------------------------------------------------
9 SOLE DISPOSITIVE POWER
20,000
------------------------------------------------------
10 SHARED DISPOSITIVE POWER
None
- --------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
20,000 shares
- --------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES |_|
- --------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
.17
- --------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON
IN
- --------------------------------------------------------------------------------
(Page 6 of 8 Pages)
AMENDMENT NO. 3 TO SCHEDULE 13D
Item 1. Security and Issuer.
This amended statement relates to shares of the common stock, par value
$.001 per share, of LSB Industries, Inc. (the "Issuer"). The Issuer's principal
executive offices are located at 16 South Pennsylvania Avenue, Oklahoma City,
Oklahoma 73107.
Item 2. Identity and Background.
This amended statement is being filed by Wynnefield Partners Small Cap
Value, L.P. ("Wynnefield") and Wynnefield Partners Small Cap Value, L.P. I
("Wynnefield-I"), limited partnerships formed under the laws of the State of
Delaware (the "Partnerships"), Wynnefield Small Cap Value Offshore Fund, Ltd., a
Cayman Islands corporation (the "Fund"), Channel Partnership II, a Delaware
partnership ("Channel"), and Nelson Obus, collectively referred to herein as the
"Wynnefield Entities". The principal business of the Wynnefield Entities is
investments, and the address of their principal offices is One Penn Plaza, Suite
4720, New York, New York 10119.
Nelson Obus, Joshua Landes and Robert Melnick are the managing members of
Wynnefield Capital Management, LLC ("WCM"), the general partner of the
Partnerships, and their principal business address is the same as the
Partnerships'. The principal occupations of Messrs. Obus, Landes and Melnick are
to manage the investments of the Wynnefield Entities. They are also officers of
the Fund and partners of Channel.
During the past five years, neither the Partnerships, the Fund, Channel,
WCM, Mr. Obus, Mr. Landes nor Mr. Melnick (a) has been convicted in a criminal
proceeding (excluding traffic violations or similar misdemeanors) or (b) has
been a party to a civil proceeding of a judicial or administrative body of
competent jurisdiction, as a result of which it or he was or is subject to a
judgment, decree or final order enjoining future violations of, or prohibiting
or mandating activities subject to, federal or state securities laws or finding
any violation with respect to such laws.
Messrs. Obus, Landes and Melnick are citizens of the United States.
Item 3. Source and Amount of Funds or Other Consideration.
The 568,200 shares of the Issuer's common stock that are now held by the
Wynnefield Entities were purchased for cash, which was provided from the working
capital of each of the Wynnefield Entities, except in the case of Mr. Obus the
investment was made with personal funds.
Item 4. Purpose of Transaction.
All 568,200 shares of the Issuer's common stock that are now held by the
Wynnefield Entities were purchased for investment.
Item 5. Interest in Securities of the Issuer.
As the result of the sale by the Wynnefield Entities on May 6, 1999 of a
total of 85,000 shares of the Issuer's common stock, the Wynnefield Entities now
own 568,200 shares of the Issuer's common stock, as follows: 235,620 shares are
owned by Wynnefield, 204,680 shares are owned by Wynnefield-I, 83,900 shares are
owned by the Fund, 24,000 shares are owned by Channel, and 20,000 shares are
owned by Mr. Obus. Such shares represent 4.8% of the 11,825,586 shares of common
stock of the Issuer reported as outstanding as of March 31, 1999.
(Page 7 of 8 Pages)
Accordingly, after this amended statement is filed, the Wynnefield Entities
will no longer be required to report their purchases and sales of the Issuer's
shares under Section 13 (d) of the Securities Exchange Act of 1934, as amended,
unless subsequent purchases bring their collective holdings over the 5%
threshold.
Messrs. Obus, Landes and Melnick, the managing members of WCM (the general
partner of the Partnerships), the officers of the Fund and the partners of
Channel have the sole power to vote, or to direct the vote, or to direct the
sale or other disposition of, the shares held by the Wynnefield Entities. In
such capacities, Messrs. Obus, Landes and Melnick have the sole power to receive
or to direct the receipt of the proceeds from the sale of the shares, or any
dividends paid with respect to the shares held by the Wynnefield Entities,
except in the case of Mr. Obus' shares, only he has the power to vote or dispose
of them.
Item 6. Contracts, Arrangements, Understandings or Relationships with Respect to
Securities of the Issuer.
Neither the Wynnefield Entities, WCM, Mr. Obus, Mr. Landes nor Mr. Melnick
has any contracts, arrangements, understandings or relationships (legal or
otherwise) with respect to the shares of the Issuer. None of such shares is
pledged or otherwise subject to a contingency, the occurrence of which would
give another person voting or investment power over them.
Item 7. Material to be Filed as Exhibits.
None
SIGNATURES
After reasonable inquiry and to the best of my knowledge and belief, I
certify that the information set forth in this amended statement is true,
complete and correct.
May 17, 1999
(Date)
WYNNEFIELD PARTNERS SMALL CAP VALUE, L.P.
WYNNEFIELD PARTNERS SMALL CAP VALUE, L.P. I
By Wynnefield Capital Management, LLC
By: /s/ Nelson Obus
--------------------------
Managing Member
WYNNEFIELD SMALL CAP VALUE OFFSHORE FUND, LTD.
By: /s/ Nelson Obus
--------------------------------
Authorized Officer
CHANNEL PARTNERSHIP II
By: /s/ Nelson Obus
-------------------------------
General Partner
/s/ Nelson Obus
---------------------------------------------------
(Page 8 of 8 Pages)