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FORM 3 OMB APPROVAL
- -------- UNITED STATES SECURITIES AND EXCHANGE COMMISSION ---------------------------
WASHINGTON, D.C. 20549 OMB Number: 3235-0104
Expires: September 30, 1998
INITIAL STATEMENT OF BENEFICIAL OWNERSHIP OF SECURITIES Estimated average burden
hours per response... 0.5
Filed pursuant to Section 16(a) of the Securities Exchange Act of 1934, Section 17(a) of the Public Utility
Holding Company Act of 1935 or Section 30(f) of the Investment Company Act of 1940
(Print or Type Responses)
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1. Name and Address of Reporting | 2. Date of Event Re- | 4. Issuer Name AND Ticker or Trading Symbol
Person* | quiring Statement | SPECIAL METALS CORPORATION (SMCX)
VALHI, INC. (1) | (Month/Day/Year) |-----------------------------------------------------------------
- ---------------------------------------| | 5. Relationship of Reporting | 6. If Amendment, Date of
(Last) (First) (Middle) | 11/27/98 | Person(s) to Issuer | Original (Month/Day/Year)
|-------------------------| (Check all applicable) |
5430 LBJ FREEWAY, SUITE 1700 | 3. I.R.S. Identi- | ___ Director __X__ 10% Owner |-----------------------------
- ---------------------------------------| fication Number of | ___ Officer _____ Other | 7. Individual or Joint/
(Street) | Reporting Person, | (give title (specify | Group Filing (Check
| if an entity | below) below) | Applicable Line)
| (voluntary) | | ___ Form filed by One
| | | Reporting Person
| | ------------------------- | _X_ Form filed by More than
DALLAS, TEXAS 75240 | | | One Reporting Person
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(City) (State) (Zip) | TABLE I - NON-DERIVATIVE SECURITIES BENEFICIALLY OWNED
|
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1. Title of Security | 2. Amount of Securities | 3. Ownership | 4. Nature of Indirect Beneficial
(Instr. 4) | Beneficially Owned | Form: Direct | Ownership (Instr. 5)
| (Instr. 4) | (D) or Indirect |
| | (I) (Instr. 5) |
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Reminder: Report on a separate line for each class of securities beneficially owned directly or indirectly. (Over)
* If the form is filed by more than one reporting person, see Instruction 5(b)(v). SEC 1473 (7-97)
POTENTIAL PERSONS WHO ARE TO RESPOND TO THE COLLECTION OF INFORMATION IN THIS FORM ARE NOT REQUIRED
TO RESPOND UNLESS THE FORM DISPLAYS A CURRENTLY VALID OMB CONTROL NUMBER.
Page 1 of 8
FORM 3 (CONTINUED)
TABLE II - DERIVATIVE SECURITIES BENEFICIALLY OWNED (E.G., PUTS, CALLS, WARRANTS, OPTIONS, CONVERTIBLE SECURITIES)
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1.Title of Derivative Security | 2.Date Exer- | 3.Title and Amount of Securities | 4.Conver- | 5. Owner- | 6. Nature of
(Instr. 4) | cisable and | Underlying Derivative Security | sion or | ship | Indirect
| Expiration | (Instr. 4) | Exercise | Form of | Beneficial
| Date | | Price of | Deriv- | Ownership
| (Month/Day/ | | Deriv- | ative | (Instr. 5)
| Year) | | ative | Security: |
|---------------|----------------------------------| Security | Direct |
|Date |Expir- | | Amount | | (D) or |
|Exer- |ation | Title | or | | Indirect |
|cisable|Date | | Number | | (I) |
| | | | of | | (Instr. 5)|
| | | | Shares | | |
| | | | | | |
- -------------------------------|-------|-------|------------------------|---------|-----------|--------------|---------------------
| | | | | | |
6.625% SERIES A SENIOR | | | | | | |
PREFERRED STOCK (LIQUIDATION | | | | | | |
AMOUNT $50 PER SHARE), PAR | |4/27/06| COMMON STOCK, PAR |4,848,484| | |
VALUE $0.01 PER SHARE | (2) | (2) | VALUE $0.01 PER SHARE | (2) | (2) | I |By TFMC (3)
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Explanation of Responses:
See the continuation pages for footnotes.
/s/ J. Mark Hollingsworth, Vice President 12/7/98
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**Signature of Reporting Person Date
** Intentional misstatements or omissions of facts constitute Federal Criminal Violations.
See 18 U.S.C. 1001 and 15 U.S.C. 78ff(a).
Note: File three copies of this Form, one of which must be manually signed. If space is insufficient,
See Instruction 6 for procedure.
Potential persons who are to respond to the collection of information contained in this form are not
required to respond unless the form displays a currently valid OMB Number.
Page 2 of 8
SEC 1473 (7-97)
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FORM 3 CONTINUATION PAGE| |Page 3
of 8 pages
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Name and Address of Reporting Person: |Date of Event Requiring
Statement
|(Month/Day/Year):
VALHI, INC. |
5430 LBJ FREEWAY, Suite 1700 |
DALLAS, TEXAS 75240 | November 27, 1998
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Issuer and Ticker or Trading Symbol:
Special Metals Corporation (SMCX)
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Footnotes:
(1) The following entities ("Additional Reporting Persons") join
in this filing with Valhi, Inc. as the designated filer:
Valmont Insurance Company
Valhi Group, Inc.
National City Lines, Inc.
NOA, Inc.
Dixie Holding Company
Dixie Rice Agricultural Corporation, Inc.
Southwest Louisiana Land Company, Inc.
Contran Corporation
By: /s/ J. Mark Hollingsworth
----------------------------------- Date: December
7, 1998
J. Mark Hollingsworth, as Assistant
Secretary of each of the Additional
Reporting Persons
Except for Valmont Insurance Company, The address for
Valmont
the address of each of the Additional Insurance Company
is:
Reporting Persons is:
5430 LBJ Freeway, Suite 1700 Five Burlington
Square
Dallas, Texas 75240 4th Floor
Burlington, Vermont
05401
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FORM 3 CONTINUATION PAGE| |Page 4
of 8 pages
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Name and Address of Reporting Person: |Date of Event Requiring
Statement
|(Month/Day/Year):
VALHI, INC. |
5430 LBJ FREEWAY, Suite 1700 |
DALLAS, TEXAS 75240 | November 27, 1998
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Issuer and Ticker or Trading Symbol:
Special Metals Corporation (SMCX)
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(2) The 6.625% Series A Senior Convertible Preferred Stock
(Liquidation Amount $50.00 Per Share), par value $0.01 per
share (the "Preferred Stock"), of the issuer will become
convertible into shares of common stock, par value $0.01 per
share (the "Common Stock"), of the issuer, subject to
certain conditions, on January 26, 1999, at the earliest,
and thereafter may be converted at any time prior to the
close of business on the business day immediately proceeding
a voluntary redemption the Preferred Stock by the issuer (as
permitted by the terms of the Preferred Stock) or the
mandatory redemption of the Preferred Stock by the issuer on
April 28, 2006. Each share of Preferred Stock is
convertible into such number of whole shares of Common Stock
as is equal to the aggregate liquidation amount of such
Preferred Stock surrendered for conversion divided by $16.50
per share, subject to certain adjustments. The liquidation
amount per share of Preferred Stock is $50.00 plus all
accumulated and unpaid dividends. This description of the
Preferred Stock is qualified in its entirety by reference to
the Certificate of Designations for the Preferred Stock that
the issuer filed on October 28, 1998 with the Secretary of
State of the State of Delaware, which Certificate of
Designations is filed as Exhibit 4.5 to the issuer's Current
Report on Form 8-K filed with the Securities and Exchange
Commission on November 12, 1998 and incorporated herein by
reference.
(3) TIMET Finance Management Company, a Delaware corporation,
directly holds the shares of Preferred Stock. See
Additional Information below for a description of the
relationship.
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FORM 3 CONTINUATION PAGE| |Page 5
of 8 pages
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Name and Address of Reporting Person: |Date of Event Requiring
Statement
|(Month/Day/Year):
VALHI, INC. |
5430 LBJ FREEWAY, Suite 1700 |
DALLAS, TEXAS 75240 | November 27, 1998
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Issuer and Ticker or Trading Symbol:
Special Metals Corporation (SMCX)
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Additional Information
Titanium Metals Corporation ("TIMET") is the direct holder
of 100% of the outstanding shares of TIMET Finance Management
Company ("TMFC") and may be deemed to control TFMC. Tremont
Corporation ("Tremont") is the direct holder of 33.5% of the
outstanding common stock of TIMET and has an option to purchase
an additional 4.8% of TIMET's outstanding common stock expiring
on February 15, 1999. Tremont may be deemed to control TIMET.
Valhi, Inc. ("Valhi"), the Harold Simmons Foundation, Inc. (the
"Foundation"), NL Industries, Inc. ("NL"), Valmont Insurance
Company ("Valmont") and The Combined Master Retirement Trust (the
"CMRT") are the direct holders of approximately 48.4%, 3.9%, 0.6%
0.5% and 0.1%, respectively, of the outstanding shares of common
stock of Tremont. Valhi may be deemed to control Tremont. Valhi
and Tremont are the direct holders of approximately 57.8% and
19.6%, respectively of the outstanding common stock of NL and
together may be deemed to control NL. Valhi is the direct holder
of 100% of the outstanding common stock of Valmont and may be
deemed to control Valmont. Valhi Group, Inc. ("VGI"), National
City Lines, Inc. ("National"), Contran Corporation ("Contran"),
the Foundation and the CMRT are the direct holders of 81.9%,
9.5%, 0.8%, 0.5% and 0.1% of the common stock of Valhi.
Together, VGI, National and Contran may be deemed to control
Valhi. National, NOA, Inc. ("NOA") and Dixie Holding Company
("Dixie Holding") are the direct holders of approximately 73.3%,
11.4% and 15.3%, respectively, of the outstanding common stock of
VGI. Together, National, NOA, and Dixie Holding may be deemed to
control VGI. Contran and NOA are the direct
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FORM 3 CONTINUATION PAGE| |Page 6
of 8 pages
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Name and Address of Reporting Person: |Date of Event Requiring
Statement
|(Month/Day/Year):
VALHI, INC. |
5430 LBJ FREEWAY, Suite 1700 |
DALLAS, TEXAS 75240 | November 27, 1998
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Issuer and Ticker or Trading Symbol:
Special Metals Corporation (SMCX)
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holders of approximately 85.7% and 14.3%, respectively, of the
outstanding common stock of National and together may be deemed
to control National. Contran and Southwest Louisiana Land
Company, Inc. ("Southwest") are the direct holders of
approximately 49.9% and 50.1%, respectively, of the outstanding
common stock of NOA and together may be deemed to control NOA.
Dixie Rice Agricultural Corporation, Inc. ("Dixie Rice") is the
holder of 100% of the outstanding common stock of Dixie Holding
and may be deemed to control Dixie Holding. Contran is the
holder of approximately 88.8% and 66.3% of the outstanding common
stock of Southwest and Dixie Rice, respectively, and may be
deemed to control Southwest and Dixie Rice.
Substantially all of Contran's outstanding voting stock is
held by trusts established for the benefit of certain of Mr.
Harold C. Simmons' children and grandchildren (the "Trusts"), of
which Mr. Simmons is the sole trustee. As sole trustee of each
of the Trusts, Mr. Simmons has the power to vote and direct the
disposition of the shares of Contran stock held by each of the
Trusts. Mr. Simmons, however, disclaims beneficial ownership of
such shares.
The CMRT directly holds approximately 0.1% of each of the
outstanding shares of Tremont and Valhi common stock. The CMRT
is a trust formed by Valhi to permit the collective investment by
trusts that maintain the assets of certain employee benefit plans
adopted by Valhi and related companies. Mr. Simmons is the sole
trustee of the CMRT and the sole member of the trust investment
committee for the CMRT. Mr. Simmons is a participant in one or
more of the employee benefit plans that invest through the CMRT.
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FORM 3 CONTINUATION PAGE| |Page 7
of 8 pages
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Name and Address of Reporting Person: |Date of Event Requiring
Statement
|(Month/Day/Year):
VALHI, INC. |
5430 LBJ FREEWAY, Suite 1700 |
DALLAS, TEXAS 75240 | November 27, 1998
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Issuer and Ticker or Trading Symbol:
Special Metals Corporation (SMCX)
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The Foundation directly holds approximately 3.9% of the
outstanding Tremont common stock and 0.5% of the outstanding
Valhi common stock. The Foundation is a tax-exempt foundation
organized for charitable purposes. Harold C. Simmons is the
chairman of the board and chief executive officer of the
Foundation and may be deemed to control the Foundation.
The Contran Deferred Compensation Trust No. 2 (the "CDCT No.
2") directly holds approximately 0.2% of Valhi common stock.
Boston Safe Deposit and Trust Company serves as the trustee of
the CDCT No. 2. Contran established the CDCT No. 2 as an
irrevocable "rabbi trust" to assist Contran in meeting certain
deferred compensation obligations that it owed to Harold C.
Simmons. If the CDCT No. 2 assets are insufficient to satisfy
such obligations, Contran is obligated to satisfy the balance of
such obligations as they come due. Due to the terms of the CDCT
No. 2, Contran (i) retains the power to vote the shares of Valhi
common stock held directly by the CDCT No. 2, (ii) retains
dispositive power over such shares and (iii) may be deemed the
indirect beneficial owner of such shares.
Valmont and NL directly own 1,000,000 shares and 1,186,200
shares, respectively, of Valhi common stock. Pursuant to
Delaware law, Valhi treats the shares of Valhi common stock owned
by Valmont and NL as treasury stock for voting purposes and for
the purposes of this Statement are not deemed outstanding.
Mr. Harold C. Simmons is chairman of the board and chief
executive officer of Valhi, VGI, National, NOA, Dixie Holding,
Dixie Rice, Southwest and Contran.
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FORM 3 CONTINUATION PAGE| |Page 8
of 8 pages
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Name and Address of Reporting Person: |Date of Event Requiring
Statement
|(Month/Day/Year):
VALHI, INC. |
5430 LBJ FREEWAY, Suite 1700 |
DALLAS, TEXAS 75240 | November 27, 1998
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Issuer and Ticker or Trading Symbol:
Special Metals Corporation (SMCX)
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Mr. Simmons is also chairman of the board of NL and a
director of Tremont.
By virtue of the holding of the offices, the stock ownership
and his services as trustee, all as described above, (a) Mr.
Simmons may be deemed to control the entities described above
(except the issuer) and (b) Mr. Simmons and certain of such
entities may be deemed to possess indirect beneficial ownership
of Shares beneficially owned by TFMC. However, Mr. Simmons
disclaims beneficial ownership of the Shares beneficially owned,
directly or indirectly, by any of such entities.
Harold C. Simmons' spouse is the direct owner of 3,747
shares of Tremont common stock and 77,000 shares of Valhi common
stock. Mr. Simmons may be deemed to share indirect beneficial
ownership of such shares. Mr. Simmons disclaims all such
beneficial ownership.
