LSB Industries Inc., Oklahoma City, announced on Sept. 9 that independent proxy advisory firm Institutional Shareholder Services (ISS) has recommended that LSB shareholders vote for all of the proposals in the Definitive Proxy Statement filed by the company on Aug. 26, 2021, relating to the company’s agreement with LSB Funding LLC, an affiliate of Eldridge Industries LLC, to exchange the shares of LSB Series E-1 and Series F-1 Redeemable Preferred Stock held by Eldridge for shares of LSB common stock (GM Aug. 27, p. 28; July 23, p. 29).
“Although the preferred share conversions into common stock would have a dilutive impact on existing shareholders, the apparent benefits of this proposal outweigh such concerns,” said ISS. “Specifically, the conversion price of the preferred stock was set at a premium, approval of this proposal could improve the company’s ability to raise future capital, unaffiliated shareholders will receive a special dividend as part of the proposed share conversions, and the market reaction has been positive indicating shareholders may view the proposed conversions, favorably. As such, support for this proposal is warranted.”
LSB will hold a Special Meeting of LSB stockholders that will be conducted virtually via live webcast at 8:30 am Central Daylight Time on Sept. 22, 2021. Stockholders of record at the close of business on Aug. 2, 2021, will be entitled to vote their shares at the Special Meeting.