LSB Industries, Inc. Updates Status of Automotive Business Spin-Off to Shareholders
1 December 1998
LSB Industries, Inc. Updates Status of Automotive Business Spin-Off to Shareholders
OKLAHOMA CITY, Dec. 1 -- LSB Industries, Inc.
disclosed today that in connection with its previously announced intention to
spin-off its Automotive Business, L&S Automotive Products Company has reached
an agreement in principle with a new working capital lender to provide a $20.0
million line of credit. The new line of credit for the Automotive Business,
which will be put in place prior to a spin-off, is subject to completion of a
definitive loan agreement and satisfaction of other conditions.
LSB continues to make progress in preparing for the spin-off of its
Automotive Business. The actual date that shareholders of record of LSB will
be eligible to receive the new shares in the Automotive Business is expected
to be announced in January 1999. LSB is in the process of filing disclosure
documents with the Securities and Exchange Commission, a request for tax-free
treatment with the Internal Revenue Service, and a stock exchange listing
application. The spin-off remains subject to certain conditions, including
approval by the Board of Directors of LSB.
The Automotive Business manufactures and markets lines of bearings, motor
mounts, universal joints and complete clutch sets, which it sells into the
automotive parts aftermarket, the export market, and to OEM customers.
The Automotive Business plans to further develop its Internet sales
program to sell parts worldwide. It now estimates that approximately twenty
percent (20%) of its sales orders are received via the Internet. L&S's web
site is located at http://www.lsautomotive.com. L&S e-mail address is
sales@lsautomotive.com.
LSB is a manufacturing, marketing, and engineering company with activities
on a worldwide basis. LSB's principal business activities consist of the
manufacture and sale of chemical products for the mining, agricultural and
industrial markets, the manufacture and sale of commercial and residential
climate control products, the provision of specialized engineering services,
and other activities. LSB's common stock and Series 2 Preferred stock are
listed for trading on the New York Stock Exchange.
This press release contains certain "forward-looking" statements within
the meaning of the Private Securities Litigation Reform Act of 1995. Forward-
looking statements include all statements other than statements of historical
facts that address activities, events or developments that LSB expects,
believes or anticipates will or may occur in the future and statements as to
the ability to complete the spin-off of its Automotive Business and ability to
complete the new line of credit for the Automotive Business. There are a
variety of factors which could cause the forward-looking statements to differ
materially from those described herein, including, without limitation,
inability to complete the line of credit due to, among other things, failure
to complete definitive agreements or the Automotive Business' inability to
meet the lender's requirements to provide the financing , and inability to
finalize the spin-off due to, among other things, a determination that the
spin-off is taxable to the shareholders, requirements of the Securities and
Exchange Commission, the spin-off not being approved by the Board of Directors
or inability to finalize the line of credit for the Automotive Business.