<PAGE>
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
SCHEDULE 13D
Under the Securities Exchange Act of 1934
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)
August 17, 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 Rule 13d-1 (b)(3) or (4), check the following
box |_|.
Note: Six copies of this statement, including all exhibits, should be filed
with the Commission. See Rule 13d-1(a) 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 6
Page 1 of 12 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.
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 423,000
Shares
Beneficially 8 Shared Voting Power
Owned By 0
Each
Reporting 9 Sole Dispositive Power
Person 423,000
With
10 Shared Dispositive Power
0
11 Aggregate Amount Beneficially Owned by Each Reporting Person
423,000
12 Check Box If the Aggregate Amount in Row (11) Excludes Certain
Shares* |_|
13 Percent of Class Represented By Amount in Row (11)
7.3%
14 Type of Reporting Person*
IA, PN
Page 2 of 12 Pages
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Item 1. Security and Issuer
-------------------
This statement on Schedule 13D relates to shares of Common Stock, par
value $.01 per share (the "Common Stock"), of Surety Capital Corporation, a
Delaware corporation (the "Issuer"). The principal executive offices of the
Issuer are located at 1845 Precinct Line Road, Suite 100, Hurst, TX 76054.
Item 2. Identity and Background
-----------------------
This statement on Schedule 13D is being filed by Carlson Capital,
L.P. (the "Reporting Person"). The business address of the Reporting Person is
301 Commerce Street, Suite 3300, Fort Worth, TX 76102.
The Reporting Person acts as investment adviser to several private
investment funds and managed accounts which are the ultimate beneficial owners
of the shares to which this statement relates. No such client of the Reporting
Person owns 5% or more of the outstanding Common Stock.
The general partner of the Reporting Person is Asgard Investment
Corp., a Delaware corporation, whose business and principal office is 301
Commerce Street, Suite 3300, Fort Worth, TX 76102. The officers of Asgard
Investment Corp. are as follows: Clint D. Carlson, President, and Nancy
Carlson, Treasurer and Secretary. The sole director of Asgard Investment Corp.
is Clint D. Carlson. The business address of both Clint D. Carlson and Nancy
Carlson is 301 Commerce Street, Suite 3300, Fort Worth, TX 76102. The present
occupation of Clint D. Carlson is President of Asgard Investment Corp. and
Chief Executive Officer of Carlson Capital, L.P. The present occupation of
Nancy Carlson is Secretary and Treasurer of Carlson Capital L.P. and Asgard
Investment Corp. Both Clint D. Carlson and Nancy Carlson are U.S. citizens.
During the last five years, none of the Reporting Person, Asgard
Investment Corp., Clint D. Carlson or Nancy Carlson has been convicted in a
criminal proceeding (excluding traffic violations or similar misdemeanors) or
was a party to a civil proceeding of a judicial or administrative body of
competent jurisdiction resulting in a judgment, decree or final order
enjoining future violations of, or prohibiting or mandating activities subject
to, federal or state securities laws or finding any violation with respect to
such laws.
The filing of this statement on Schedule 13-D by the Reporting Person
shall not be construed as an admission that the Reporting Person was, for the
purposes of Section 13(d) of the Act, the beneficial owner of any securities
covered by this statement on Schedule 13-D, and the Reporting Person disclaims
such beneficial ownership.
Item 3. Source and Amount of Funds or Other Consideration
-------------------------------------------------
All of the shares of Common Stock of the Issuer deemed beneficially
held by the Reporting Person were purchased with the working capital of the
investment funds and managed accounts.
Page 3 of 12 Pages
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Item 4. Purpose of Transaction
----------------------
The purpose of the acquisition and disposition by the Reporting
Person of the shares of Common Stock is for investment, although 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
------------------------------------
(a) This statement on Schedule 13D relates to 423,000 shares of Common
Stock deemed beneficially owned by the Reporting Person, which
constitute approximately 7.3% of the issued and outstanding shares of
Common Stock.
(b) The Reporting Person has sole voting and dispositive power with
respect to 423,000 shares of Common Stock.
(c) Within the past sixty days, accounts managed by the Reporting Person
purchased and sold 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.
(d) Not applicable.
(e) Not applicable.
Item 6. Contracts, Arrangements, Understandings or Relationships with Respect
to Securities of the Issuer
Except as set forth above in Item 2, there exist no contracts,
arrangements, understandings or relationships (legal or otherwise) among the
persons named in Item 2 and between such persons and any other persons with
respect to any securities of the Issuer, including but not limited to transfer
or voting of any securities, finders' fees, joint ventures, loan or option
arrangements, put or calls, guarantees of profits, division of profits or
loss, or the giving or withholding of proxies.
Item 7. Material to be Filed as Exhibits
--------------------------------
Exhibit A: Transactions in Shares of Common Stock Within Past 60 Days.
Page 4 of 12 Pages
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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: August 26, 1998
CARLSON CAPITAL, L.P
By:/s/ Clint D. Carlson
-------------------------
Clint D. Carlson, President of the General Partner
Page 5 of 12 Pages
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EXHIBIT A
---------
Transactions in Shares of Common Stock
Within the Past Sixty Days
--------------------------
Transactions by Account No. 1
- -----------------------------
================================================================================
Trade Type Trade Date Quantity Price
- -----------------------------------------------------------------------------
BUY 06/18/98 525.00 4.3750
- -----------------------------------------------------------------------------
BUY 06/18/98 1,565.00 4.3750
- -----------------------------------------------------------------------------
BUY 06/22/98 520.00 4.3750
- -----------------------------------------------------------------------------
BUY 6/23/98 1,045.00 4.2000
- -----------------------------------------------------------------------------
SELL 6/23/98 -50.00 4.1250
- -----------------------------------------------------------------------------
BUY 06/25/98 85.00 4.0000
- -----------------------------------------------------------------------------
BUY 06/30/98 620.00 4.0313
- -----------------------------------------------------------------------------
BUY 08/17/98 2,190.00 2.0536
- -----------------------------------------------------------------------------
BUY 08/18/98 2,030.00 2.4065
- -----------------------------------------------------------------------------
BUY 08/20/98 195.00 2.6250
- -----------------------------------------------------------------------------
BUY 08/21/98 610.00 2.5733
- -----------------------------------------------------------------------------
BUY 08/24/98 140.00 2.6250
=============================================================================
Page 6 of 12 Pages
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EXHIBIT A
---------
Transactions in Shares of Common Stock
Within the Past Sixty Days
--------------------------
Transactions by Account No. 2
- -----------------------------
================================================================================
Trade Type Trade Date Quantity Price
- ---------------------------------------------------------------------------
BUY 06/18/98 2,985.00 4.3750
- ---------------------------------------------------------------------------
BUY 06/18/98 8,955.00 4.3750
- ---------------------------------------------------------------------------
BUY 06/22/98 2,985.00 4.3750
- ---------------------------------------------------------------------------
BUY 06/23/98 5,955.00 4.2000
- ---------------------------------------------------------------------------
SELL 06/23/98 -305.00 4.1250
- ---------------------------------------------------------------------------
BUY 06/25/98 510.00 4.0000
- ---------------------------------------------------------------------------
BUY 06/30/98 3,595.00 4.0313
- ---------------------------------------------------------------------------
BUY 07/15/98 250.00 4.6250
- ---------------------------------------------------------------------------
BUY 08/17/98 13,310.00 2.0536
- ---------------------------------------------------------------------------
BUY 08/18/98 12,000.00 2.4065
- ---------------------------------------------------------------------------
BUY 08/20/98 1,155.00 2.6250
- ---------------------------------------------------------------------------
BUY 08/21/98 280.00 2.5733
- ---------------------------------------------------------------------------
BUY 08/24/98 890.00 2.6250
===========================================================================
Page 7 of 12 Pages
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EXHIBIT A
---------
Transactions in Shares of Common Stock
Within the Past Sixty Days
--------------------------
Transactions by Account No. 3
- -----------------------------
================================================================================
Trade Type Trade Date Quantity Price
- -------------------------------------------------------------------------------
BUY 06/18/98 1,405.00 4.3750
- -------------------------------------------------------------------------------
BUY 06/18/98 4,235.00 4.3750
- -------------------------------------------------------------------------------
BUY 06/22/98 1,415.00 4.3750
- -------------------------------------------------------------------------------
BUY 06/23/98 2,830.00 4.2000
- -------------------------------------------------------------------------------
SELL 06/23/98 -140.00 4.1250
- -------------------------------------------------------------------------------
BUY 06/25/98 245.00 4.0000
- -------------------------------------------------------------------------------
BUY 06/30/98 1,700.00 4.0313
- -------------------------------------------------------------------------------
BUY 07/09/98 8,200.00 4.6000
- -------------------------------------------------------------------------------
BUY 07/10/98 820.00 4.5625
- -------------------------------------------------------------------------------
BUY 07/15/98 250.00 4.6250
- -------------------------------------------------------------------------------
BUY 07/17/98 3,375.00 4.3750
- -------------------------------------------------------------------------------
BUY 07/20/98 750.00 4.3750
- -------------------------------------------------------------------------------
BUY 07/23/98 7,500.00 4.3438
- -------------------------------------------------------------------------------
BUY 07/28/98 3,750.00 4,3125
- -------------------------------------------------------------------------------
BUY 07/29/98 150.00 4.2500
- -------------------------------------------------------------------------------
BUY 07/31/98 12,075.00 4.2737
- -------------------------------------------------------------------------------
BUY 08/06/98 15,150.00 3.5012
- -------------------------------------------------------------------------------
BUY 08/17/98 500.00 2.0625
- -------------------------------------------------------------------------------
BUY 08/17/98 19,590.00 2.0536
- -------------------------------------------------------------------------------
BUY 08/18/98 16,280.00 2.4065
- -------------------------------------------------------------------------------
BUY 08/20/98 1,570.00 2.6250
- -------------------------------------------------------------------------------
BUY 08/21/98 4,925.00 2.5733
- -------------------------------------------------------------------------------
BUY 08/24/98 1,130.00 2.6250
===============================================================================
Page 8 of 12 Pages
<PAGE>
EXHIBIT A
---------
Transactions in Shares of Common Stock
Within the Past Sixty Days
--------------------------
Transactions by Account No. 4
- -----------------------------
===============================================================================
Trade Type Trade Date Quantity Price
- -------------------------------------------------------------------------------
BUY 06/18/98 225.00 4.3750
- -------------------------------------------------------------------------------
BUY 06/18/98 675.00 4.3750
- -------------------------------------------------------------------------------
BUY 06/22/98 225.00 4.3750
- -------------------------------------------------------------------------------
BUY 06/23/98 460.00 4.2000
- -------------------------------------------------------------------------------
SELL 06/23/98 -20.00 4.1250
- -------------------------------------------------------------------------------
BUY 06/25/98 35.00 4.0000
- -------------------------------------------------------------------------------
BUY 06/30/98 270.00 4.0313
- -------------------------------------------------------------------------------
BUY 08/17/98 955.00 2.0536
- -------------------------------------------------------------------------------
BUY 08/18/98 880.00 2.4065
- -------------------------------------------------------------------------------
BUY 08/20/98 85.00 2.6230
===============================================================================
Page 9 of 12 Pages
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EXHIBIT A
---------
Transactions in Shares of Common Stock
Within the Past Sixty Days
--------------------------
Transactions by Account No. 5
- -----------------------------
============================================================================
Trade Type Trade Date Quantity Price
- ----------------------------------------------------------------------------
BUY 06/18/98 3,355.00 4.3750
- ----------------------------------------------------------------------------
BUY 06/18/98 10,055.00 4.3750
- ----------------------------------------------------------------------------
BUY 06/22/98 3,350.00 4.3750
- ----------------------------------------------------------------------------
BUY 06/23/98 6,695.00 4.2000
- ----------------------------------------------------------------------------
SELL 06/23/98 -335.00 4.1250
- ----------------------------------------------------------------------------
BUY 06/25/98 575.00 4.0000
- ----------------------------------------------------------------------------
BUY 06/30/98 4,020.00 4.0313
- ----------------------------------------------------------------------------
BUY 08/17/98 3,500.00 2.0625
- ----------------------------------------------------------------------------
BUY 08/17/98 18,320.00 2.0536
- ----------------------------------------------------------------------------
BUY 08/18/98 13,230.00 2.4085
- ----------------------------------------------------------------------------
BUY 08/20/98 1,270.00 2.6250
- ----------------------------------------------------------------------------
BUY 08/21/98 4,000.00 2.5733
- ----------------------------------------------------------------------------
BUY 08/24/98 913.00 2.6250
============================================================================
Page 10 of 12 Pages
<PAGE>
EXHIBIT A
---------
Transactions in Shares of Common Stock
Within the Past Sixty Days
--------------------------
Transactions by Account No. 6
- -----------------------------
=============================================================================
Trade Type Trade Date Quantity Price
- -----------------------------------------------------------------------------
BUY 06/18/98 370.00 4.3750
- -----------------------------------------------------------------------------
BUY 06/18/98 1,110.00 4.3750
- -----------------------------------------------------------------------------
BUY 06/22/98 370.00 4.3750
- -----------------------------------------------------------------------------
BUY 06/23/98 750.00 4.2000
- -----------------------------------------------------------------------------
SELL 06/23/98 -35.00 4.1250
- -----------------------------------------------------------------------------
BUY 06/25/98 60.00 4.000
- -----------------------------------------------------------------------------
BUY 06/30/98 445.00 4.0313
- -----------------------------------------------------------------------------
BUY 07/09/98 1,800.00 4.6000
- -----------------------------------------------------------------------------
BUY 07/10/98 180.00 4.5625
- -----------------------------------------------------------------------------
BUY 07/17/98 1,125.00 4.3750
- -----------------------------------------------------------------------------
BUY 07/20/98 250.00 4.3750
- -----------------------------------------------------------------------------
BUY 07/23/98 2,500.00 4.3438
- -----------------------------------------------------------------------------
BUY 07/28/98 1,250.00 4.3125
- -----------------------------------------------------------------------------
BUY 07/29/98 50.00 4.2500
- -----------------------------------------------------------------------------
BUY 07/31/98 4,025.00 4.2737
- -----------------------------------------------------------------------------
BUY 08/06/98 5,050.00 3.5012
- -----------------------------------------------------------------------------
BUY 08/17/98 2,165.00 2,0536
- -----------------------------------------------------------------------------
BUY 08/18/98 3,170.00 2.4065
- -----------------------------------------------------------------------------
BUY 08/20/98 300.00 2.6250
- -----------------------------------------------------------------------------
BUY 08/21/98 953.00 2.5733
- -----------------------------------------------------------------------------
BUY 08/24/98 220.00 2.6250
=============================================================================
Page 11 of 12 Pages
<PAGE>
EXHIBIT A
---------
Transactions in Shares of Common Stock
Within the Past Sixty Days
--------------------------
Transactions by Account No. 7
- -----------------------------
================================================================================
Trade Type Trade Date Quantity Price
- ----------------------------------------------------------------------------
BUY 06/18/98 1,135.00 4.3750
- ----------------------------------------------------------------------------
BUY 06/18/98 3,405.00 4.3750
- ----------------------------------------------------------------------------
BUY 06/22/98 1,135.00 4.3750
- ----------------------------------------------------------------------------
BUY 06/23/98 2,265.00 4.2000
- ----------------------------------------------------------------------------
SELL 06/23/98 -115.00 4.1250
- ----------------------------------------------------------------------------
BUY 06/25/98 190.00 4.0000
- ----------------------------------------------------------------------------
BUY 06/30/98 1,350.00 4.0313
- ----------------------------------------------------------------------------
BUY 08/17/98 4,770.00 2.0536
- ----------------------------------------------------------------------------
BUY 08/18/98 4,410.00 2.4063
- ----------------------------------------------------------------------------
BUY 08/20/98 425.00 2.6250
- ----------------------------------------------------------------------------
BUY 08/21/98 1,330.00 2.5733
- ----------------------------------------------------------------------------
BUY 08/24/98 305.00 2.6250
============================================================================
Page 12 of 12 Pages
