<PAGE>
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
SCHEDULE 13D
Under the Securities Exchange Act of 1934
(Amendment No. 1 )*
SURETY CAPITAL CORPORATION
--------------------------
(Name of Issuer)
Common Stock, $.01 par value
------------------------------
(Title of Class of Securities)
868666207
--------------
(CUSIP Number)
Christopher M. Wells
Coudert Brothers
1114 Avenue of the Americas
New York, New York 10036
-------------------------------------------------
(Name, Address and Telephone Number of Person
Authorized to Receive Notices and Communications)
November 30, 1998
------------------------------------
(Date of Event which Requires Filing
of this Statement)
If the filing person has previously filed a statement on Schedule 13G to report
the acquisition which is the subject of this Schedule 13D, and is filing this
schedule because of ss.ss.240.13d-1(e), 240.13d-1(f) or 240.13d-1(g), check the
following box / /.
Note: Six copies of this statement, including all exhibits, should be filed with
the Commission. See Rule ss.240.13d-7(b) for other parties to whom copies are to
be sent.
*The remainder of this cover page shall be filled out for a reporting person's
initial filing on this form with respect to the subject class of securities, and
for any subsequent amendment containing information which would alter disclosure
provided in a prior cover page.
The information required on the remainder of this cover page shall not be deemed
to be "filed" for the purpose of Section 18 of the Securities Exchange Act of
1934 ("Act") or otherwise subject to the liabilities of that section of the Act
but shall be subject to all other provisions of the Act (however, see the
Notes).
Exhibit Index: Page 5
Page 1 of 11 Pages
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SCHEDULE 13D
CUSIP No. 868666207
1 Name of Reporting Person
S.S. or I.R.S. Identification No. of Above Person
Carlson Capital, L.P.
#75-249-4317
2 Check the Appropriate Box If a Member of a Group*
a. / /
b. /X/
3 SEC Use Only
4 Source of Funds*
WC
5 Check Box If Disclosure of Legal Proceedings Is Required Pursuant to
Items 2(d) or 2(e) / /
6 Citizenship or Place of Organization
United States
7 Sole Voting Power
Number of 483,500
Shares
Beneficially 8 Shared Voting Power
Owned By 0
Each
Reporting 9 Sole Dispositive Power
Person 483,500
With
10 Shared Dispositive Power
0
11 Aggregate Amount Beneficially Owned by Each Reporting Person
483,500
12 Check Box If the Aggregate Amount in Row (11) Excludes Certain
Shares* / /
13 Percent of Class Represented By Amount in Row (11)
8.4%
14 Type of Reporting Person*
IA, PN
Page 2 of 11 Pages
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This Amendment No. 1 to the original statement of beneficial ownership
on Schedule 13D filed by the Reporting Person on August 27, 1998 has been
prepared to report the purchase by the Reporting Person of additional shares of
the Issuer. Defined terms used herein that are not otherwise defined herein have
the meanings ascribed to them in the Reporting Person's original Schedule 13D
filing.
Item 3. Source and Amount of Funds or Other Consideration
-------------------------------------------------
Item 3 is hereby amended as follows:
All of the $158,816 used to make the purchase of the 60,500 additional
Shares acquired by the Reporting Person came from the working capital of the
investment funds and managed accounts directed by the Reporting Person.
Item 4. Purpose of Transaction
----------------------
Item 4 is hereby amended and restated as follows:
All Common Stock held by the Reporting Person is being held for
investment purposes. Consistent with such purposes, the Reporting Person has
had, and expects to continue to have, discussions with management of the Issuer
and has been contacted by one other shareholder of the Issuer concerning various
operational and financial aspects of the Issuer's business. The Reporting Person
may, in the future, have discussions with management and other shareholders of
the Issuer concerning various ways of maximizing long-term shareholder value.
Subject to economic considerations and market conditions, the Reporting Person
may, from time to time, acquire additional shares of Common Stock in the open
market or in privately negotiated transactions or may dispose of such securities
or the securities it presently owns in the open market or in private
transactions. The Reporting Person may engage in activities intended to
influence the business strategy or management of the Issuer.
Except as indicated above, the Reporting Person has no plans or
proposals which relate to or would result in any of the events, actions or
conditions specified in paragraphs (a) through (j) of Item 4 of this Schedule
13-D.
Item 5. Interest in Securities of the Issuer
------------------------------------
Items 5(a), (b), (c) and (d) are amended to read as follows:
(a) This statement on Schedule 13D relates to 483,500 shares of Common
Stock deemed beneficially owned by the Reporting Person, which
constitute approximately 8.4% of the issued and outstanding shares of
Common Stock.
(b) The Reporting Person has sole voting and dispositive power with respect
to 483,500 shares of Common Stock.
(c) Since the original Schedule 13D filing, accounts managed by the
Reporting Person purchased shares of Common Stock on the dates, in the
amounts and at the prices set forth on Exhibit A annexed hereto and
incorporated by reference herein. All of such purchases were made on
the open market, except for 6,820 shares which were purchased by the
Reporting Person from Account No. 4 on behalf of Account No. 3 on
September 4, 1998.
Page 3 of 11 Pages
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(d) The private investment funds and managed accounts to which the
Reporting Person serves as investment adviser and/or general partner
and for whose accounts the Common Stock is held have the right to
receive dividends from or proceeds from the sale of the Common Stock.
Item 7. Material to be Filed as Exhibits
--------------------------------
Item 7 is amended to include the following:
Exhibit A: Transactions in Shares of Common Stock since the original
--------- Schedule 13D filing.
SIGNATURE
---------
After reasonable inquiry and to the best of my knowledge and belief, I
certify that the information set forth in this statement is true, complete and
correct.
Dated: December 7, 1998
CARLSON CAPITAL, L.P.
By: /s/ Clint D. Carlson
--------------------------------------------------
Clint D. Carlson, President of the General Partner
Page 4 of 11 Pages
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EXHIBIT A
---------
Transactions in Shares of Common Stock
Since Previous Schedule 13D Filing
----------------------------------
Transactions by Account No. 1
- -----------------------------
================================================================================
Trade Type Trade Date Quantity Price
- --------------------------------------------------------------------------------
BUY 08/31/98 760.00 2.2165
- --------------------------------------------------------------------------------
BUY 09/01/98 70.00 2.2500
- --------------------------------------------------------------------------------
BUY 09/03/98 15.00 2.3750
- --------------------------------------------------------------------------------
BUY 09/04/98 75.00 2.3750
- --------------------------------------------------------------------------------
BUY 10/02/98 415.00 2.5000
- --------------------------------------------------------------------------------
BUY 11/30/98 400.00 2.3750
- --------------------------------------------------------------------------------
BUY 12/01/98 75.00 2.3750
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Page 5 of 11 Pages
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EXHIBIT A
---------
Transactions in Shares of Common Stock
Since Previous Schedule 13D Filing
----------------------------------
Transactions by Account No. 2
- -----------------------------
================================================================================
Trade Type Trade Date Quantity Price
- --------------------------------------------------------------------------------
BUY 08/31/98 6,160.00 2.2165
- --------------------------------------------------------------------------------
BUY 09/01/98 540.00 2.2500
- --------------------------------------------------------------------------------
BUY 09/03/98 145.00 2.3750
- --------------------------------------------------------------------------------
BUY 09/03/98 500.00 2.3750
- --------------------------------------------------------------------------------
BUY 09/04/98 570.00 2.3750
- --------------------------------------------------------------------------------
BUY 09/09/98 750.00 2.6250
- --------------------------------------------------------------------------------
BUY 10/27/98 2,425.00 2.5000
- --------------------------------------------------------------------------------
BUY 11/30/98 2,340.00 2.3750
- --------------------------------------------------------------------------------
BUY 12/01/98 445.00 2.3750
================================================================================
Page 6 of 11 Pages
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EXHIBIT A
---------
Transactions in Shares of Common Stock
Since Previous Schedule 13D Filing
----------------------------------
Transactions by Account No. 3
- -----------------------------
================================================================================
Trade Type Trade Date Quantity Price
- --------------------------------------------------------------------------------
BUY 08/31/98 5,740.00 2.2165
- --------------------------------------------------------------------------------
BUY 09/01/98 550.00 2.2500
- --------------------------------------------------------------------------------
BUY 09/03/98 145.00 2.3750
- --------------------------------------------------------------------------------
BUY 09/03/98 500.00 2.3750
- --------------------------------------------------------------------------------
BUY 09/04/98 6,820.00 2.5000
- --------------------------------------------------------------------------------
BUY 09/04/98 575.00 2.3750
- --------------------------------------------------------------------------------
BUY 10/12/98 200.00 2.3750
- --------------------------------------------------------------------------------
BUY 10/21/98 3,000.00 2.5000
- --------------------------------------------------------------------------------
BUY 10/22/98 4,000.00 2.5000
- --------------------------------------------------------------------------------
BUY 10/23/98 2,000.00 2.3750
- --------------------------------------------------------------------------------
BUY 10/27/98 3,310.00 2.5000
- --------------------------------------------------------------------------------
BUY 11/30/98 3,245.00 2.3750
- --------------------------------------------------------------------------------
BUY 12/01/98 615.00 2.3750
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Page 7 of 11 Pages
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EXHIBIT A
---------
Transactions in Shares of Common Stock
Since Previous Schedule 13D Filing
----------------------------------
Transactions by Account No. 4
- -----------------------------
================================================================================
Trade Type Trade Date Quantity Price
- --------------------------------------------------------------------------------
SELL 09/04/98 6,820.00 2.500
================================================================================
Page 8 of 11 Pages
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EXHIBIT A
---------
Transactions in Shares of Common Stock
Since Previous Schedule 13D Filing
----------------------------------
Transactions by Account No. 5
- -----------------------------
================================================================================
Trade Type Trade Date Quantity Price
- --------------------------------------------------------------------------------
BUY 08/31/98 4,880.00 2.2165
- --------------------------------------------------------------------------------
BUY 09/01/98 460.00 2.2500
- --------------------------------------------------------------------------------
BUY 09/03/98 125.00 2.3750
- --------------------------------------------------------------------------------
BUY 09/04/98 490.00 2.3750
- --------------------------------------------------------------------------------
BUY 09/09/98 750.00 2.6250
- --------------------------------------------------------------------------------
BUY 10/27/98 2,085.00 2.5000
- --------------------------------------------------------------------------------
BUY 11/30/98 2,770.00 2.3750
- --------------------------------------------------------------------------------
BUY 12/01/98 530.00 2.3750
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Page 9 of 11 Pages
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EXHIBIT A
---------
Transactions in Shares of Common Stock
Since Previous Schedule 13D Filing
----------------------------------
Transactions by Account No. 6
- -----------------------------
================================================================================
Trade Type Trade Date Quantity Price
- --------------------------------------------------------------------------------
BUY 08/31/98 1,320.00 2.2165
- --------------------------------------------------------------------------------
BUY 09/01/98 125.00 2.2500
- --------------------------------------------------------------------------------
BUY 09/03/98 30.00 2.3750
- --------------------------------------------------------------------------------
BUY 09/04/98 130.00 2.3750
- --------------------------------------------------------------------------------
BUY 10/20/98 1,000.00 2.3125
- --------------------------------------------------------------------------------
BUY 10/22/98 1,000.00 2.5000
- --------------------------------------------------------------------------------
BUY 10/27/98 870.00 2.5000
- --------------------------------------------------------------------------------
BUY 11/30/98 375.00 2.3750
- --------------------------------------------------------------------------------
BUY 12/01/98 70.00 2.3750
================================================================================
Page 10 of 11 Pages
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EXHIBIT A
---------
Transactions in Shares of Common Stock
Since Previous Schedule 13D Filing
----------------------------------
Transactions by Account No. 7
- -----------------------------
================================================================================
Trade Type Trade Date Quantity Price ($)
- --------------------------------------------------------------------------------
BUY 08/31/98 1,640.00 2.2165
- --------------------------------------------------------------------------------
BUY 09/01/98 155.00 2.2500
- --------------------------------------------------------------------------------
BUY 09/03/98 40.00 2.3750
- --------------------------------------------------------------------------------
BUY 09/04/98 160.00 2.3750
- --------------------------------------------------------------------------------
BUY 10/27/98 895.00 2.5000
- --------------------------------------------------------------------------------
BUY 11/30/98 870.00 2.3750
- --------------------------------------------------------------------------------
BUY 12/01/98 165.00 2.3750
================================================================================
Page 11 of 11 Pages
