LSB Industries, Inc. Announces Pricing of Its $35 Million Private Offering of Senior Notes

Net Proceeds Expected to Be Used for $20
Million in Anticipated Capital Expenditures Intended to Enhance Margins

OKLAHOMA CITY–(BUSINESS WIRE)–LSB Industries, Inc. (NYSE: LXU) (“LSB”) today announced that it priced
its previously announced offering of $35 million aggregate principal
amount of its 9.625% Senior Secured Notes due 2023 (the “Notes”), which
will be sold in a private placement to eligible purchasers. The Notes
constitute a further issuance of the 9.625% Senior Secured Notes due
2023, of which $400 million aggregate principal amount was issued on
April 25, 2018. The Notes will be guaranteed on a senior secured basis
by all of LSB’s existing subsidiaries and by certain of LSB’s future
domestic wholly owned subsidiaries.

The Notes will bear an annual rate of interest of 9.625% and will mature
on May 1, 2023. The Notes will be issued at a price equal to 102.125% of
their face value plus accrued interest from May 1, 2019 to the date of
delivery. The Notes and the guarantees will be secured, subject to
certain exceptions and permitted liens, (a) on a first-priority basis by
a substantial portion of LSB’s and the guarantors’ assets (other than
the assets securing LSB’s working capital revolver loan), and (b) on a
second-priority basis by certain of LSB’s and the guarantors’ assets
that secure LSB’s working capital revolver loan on a first-priority
basis, including accounts receivable, inventory, and certain other
related assets and proceeds thereof. The closing of this private
offering is expected to occur on June 21, 2019, subject to customary
closing conditions.

LSB intends to use the net proceeds from this offering to fund
approximately $20 million in anticipated capital expenditures over the
next 12-18 months that are intended to enhance its margins, which may
include product loading and unloading improvements, tank storage,
capital to facilitate guest plant opportunities and efficiency projects
to reduce fixed costs. The remaining net proceeds are expected to be
used for general corporate purposes.

This press release is neither an offer to sell nor a solicitation of an
offer to buy the Notes or any other securities and shall not constitute
an offer, solicitation or sale in any jurisdiction in which such offer,
solicitation or sale is unlawful. The Notes and the guarantees thereof
have not been registered under the Securities Act of 1933, as amended
(the “Securities Act”), or any state securities laws and may not be
offered or sold in the United States absent registration or applicable
exemption from the registration requirements under the Securities Act
and applicable state securities laws. The Notes are being offered in the
United States only to qualified institutional buyers pursuant to Rule
144A under the Securities Act and to non-U.S. persons outside of the
United States pursuant to Regulation S under the Securities Act. This
press release is being issued in accordance with Rule 135c under the
Securities Act.

Forward-Looking Statements

Certain matters contained in this press release include
“forward-looking statements” within the meaning of Section 27A of the
Securities Act and Section 21E of the Securities Exchange Act of 1934,
as amended. We make these forward-looking statements in reliance on the
safe harbor protections provided under the Private Securities Litigation
Reform Act of 1995.

All statements, other than statements of historical fact, included in
this press release, including regarding the offering of the Notes and
the expected use of proceeds from such offering, may constitute
forward-looking statements. Forward-looking statements include
statements about LSB’s expectations, beliefs, plans, objectives,
intentions, assumptions and other statements that are not historical
facts. Although we believe that the expectations reflected in these
forward-looking statements are reasonable, we cannot assure you that
these expectations will prove to be correct. These forward-looking
statements are subject to certain known and unknown risks and
uncertainties, as well as assumptions that could cause actual results to
differ materially from those reflected in these forward-looking
statements. Factors that might cause actual results to differ include,
but are not limited to, (i) LSB’s business plans may change as
circumstances warrant and the offering of the Notes may not ultimately
be completed because of general market conditions or other factors or
(ii) any of the risk factors discussed from time to time in each of our
documents and reports filed with the Securities and Exchange Commission.
Except as required by applicable law, 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.

Contacts

Mark T. Behrman, President & CEO
Cheryl Maguire, Senior Vice
President & CFO
(405) 235-4546

Investor Relations
Contact: The Equity Group Inc.
Fred Buonocore, CFA (212) 836-9607

LSB Industries, Inc. Announces Pricing of Its $35 Million Private Offering of Senior Notes

Net Proceeds Expected to Be Used for $20
Million in Anticipated Capital Expenditures Intended to Enhance Margins

OKLAHOMA CITY–(BUSINESS WIRE)–LSB Industries, Inc. (NYSE: LXU) (“LSB”) today announced that it priced
its previously announced offering of $35 million aggregate principal
amount of its 9.625% Senior Secured Notes due 2023 (the “Notes”), which
will be sold in a private placement to eligible purchasers. The Notes
constitute a further issuance of the 9.625% Senior Secured Notes due
2023, of which $400 million aggregate principal amount was issued on
April 25, 2018. The Notes will be guaranteed on a senior secured basis
by all of LSB’s existing subsidiaries and by certain of LSB’s future
domestic wholly owned subsidiaries.

The Notes will bear an annual rate of interest of 9.625% and will mature
on May 1, 2023. The Notes will be issued at a price equal to 102.125% of
their face value plus accrued interest from May 1, 2019 to the date of
delivery. The Notes and the guarantees will be secured, subject to
certain exceptions and permitted liens, (a) on a first-priority basis by
a substantial portion of LSB’s and the guarantors’ assets (other than
the assets securing LSB’s working capital revolver loan), and (b) on a
second-priority basis by certain of LSB’s and the guarantors’ assets
that secure LSB’s working capital revolver loan on a first-priority
basis, including accounts receivable, inventory, and certain other
related assets and proceeds thereof. The closing of this private
offering is expected to occur on June 21, 2019, subject to customary
closing conditions.

LSB intends to use the net proceeds from this offering to fund
approximately $20 million in anticipated capital expenditures over the
next 12-18 months that are intended to enhance its margins, which may
include product loading and unloading improvements, tank storage,
capital to facilitate guest plant opportunities and efficiency projects
to reduce fixed costs. The remaining net proceeds are expected to be
used for general corporate purposes.

This press release is neither an offer to sell nor a solicitation of an
offer to buy the Notes or any other securities and shall not constitute
an offer, solicitation or sale in any jurisdiction in which such offer,
solicitation or sale is unlawful. The Notes and the guarantees thereof
have not been registered under the Securities Act of 1933, as amended
(the “Securities Act”), or any state securities laws and may not be
offered or sold in the United States absent registration or applicable
exemption from the registration requirements under the Securities Act
and applicable state securities laws. The Notes are being offered in the
United States only to qualified institutional buyers pursuant to Rule
144A under the Securities Act and to non-U.S. persons outside of the
United States pursuant to Regulation S under the Securities Act. This
press release is being issued in accordance with Rule 135c under the
Securities Act.

Forward-Looking Statements

Certain matters contained in this press release include
“forward-looking statements” within the meaning of Section 27A of the
Securities Act and Section 21E of the Securities Exchange Act of 1934,
as amended. We make these forward-looking statements in reliance on the
safe harbor protections provided under the Private Securities Litigation
Reform Act of 1995.

All statements, other than statements of historical fact, included in
this press release, including regarding the offering of the Notes and
the expected use of proceeds from such offering, may constitute
forward-looking statements. Forward-looking statements include
statements about LSB’s expectations, beliefs, plans, objectives,
intentions, assumptions and other statements that are not historical
facts. Although we believe that the expectations reflected in these
forward-looking statements are reasonable, we cannot assure you that
these expectations will prove to be correct. These forward-looking
statements are subject to certain known and unknown risks and
uncertainties, as well as assumptions that could cause actual results to
differ materially from those reflected in these forward-looking
statements. Factors that might cause actual results to differ include,
but are not limited to, (i) LSB’s business plans may change as
circumstances warrant and the offering of the Notes may not ultimately
be completed because of general market conditions or other factors or
(ii) any of the risk factors discussed from time to time in each of our
documents and reports filed with the Securities and Exchange Commission.
Except as required by applicable law, 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.

Contacts

Mark T. Behrman, President & CEO
Cheryl Maguire, Senior Vice
President & CFO
(405) 235-4546

Investor Relations
Contact: The Equity Group Inc.
Fred Buonocore, CFA (212) 836-9607

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