By Josh Beckerman
LSB Industries Inc., which was halted on the New York Stock Exchange for several hours Tuesday, believes incorrect information about a special stock dividend in an NYSE Group Info Notice led to a 30% downward adjustment to its Monday closing stock price.
In September, the maker of agricultural, industrial and mining chemicals completed a transaction that included Eldridge Industries LLC converting preferred stock into common shares. LSB paid a special stock dividend last week.
LSB said Tuesday afternoon that it was working with the NYSE to address the price adjustment. It said Wednesday that the Group Info Notice incorrectly said the dividend applied to about 79.4 million shares, but that it actually applied to only about 30.4 million shares, as the roughly 49.1 million shares issued to an Eldridge affiliate weren't issued before the record date. The NYSE issued a correct notice on Tuesday, according to LSB.
The NYSE didn't immediately respond to a request for comment.
LSB said last month that, after the exchange and dividend, Eldridge would own about a 61% stake. S&P Global said it expected the transaction "will lead to a significant improvement in LSB's credit metrics and provide the company with additional financial flexibility."
LSB shares were recently down 4% to $9.34.
Write to Josh Beckerman at email@example.com
(END) Dow Jones Newswires
October 13, 2021 14:49 ET (18:49 GMT)Copyright (c) 2021 Dow Jones & Company, Inc.