LSB (LXU) shares soared 7.6% in the last trading session to close at $7.53. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock’s 15.1% gain over the past four weeks.
LXU’s shares are heading higher following its announcement of an agreement 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.
LSB plans to exchange roughly $300 million of preferred stock held by Eldridge into an equivalent value of LSB common stock based on an exchange price of $6.16. The transaction is expected to lower cost of capital, simplify capital structure and offer greater financial flexibility to execute growth initiatives.
This chemical maker is expected to post quarterly earnings of $0.22 per share in its upcoming report, which represents a year-over-year change of +164.7%. Revenues are expected to be $140.24 million, up 33.5% from the...read more...