Commercial Solvents Corp. Deal - Lehman Brothers Collection
Commercial Solvents Corp.
|Company Deal||Commercial Solvents Corporation: 278,400 shares of series A preferred stock, 4.5% cumulative convertible exchange offer to holders of common stock of Northwest Nitro-Chemicals Ltd.|
|Transaction Type||Cumulative Convertible Preferred Stock|
|Deal Description||Commercial Solvents Corporation offered shares of its series A preferred stock in exchange for shares of Northwest common stock in a ratio of one share of the CSC Series for 12 shares of Northwest common stock. Prior to the deal, CSC owned 51% of Northwest's outstanding common stock, 83.4% of its outstanding preferred stock, and 11.8% of its subordinate debentures. At the time of this deal, CSC's management believed that Northwest's potential for growth and development would be best achieved if CSC was in a position to apply the full effects of CSC's manpower, agricultural chemicals experience, and other resources in the areas of finance, research, production, and marketing to the operations of Northwest. CSC would be in the best position to do so if Northwest became a wholly owned CSC subsidiary.|
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