<PAGE> 1
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
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SCHEDULE 13D/A
(RULE 13d-101)
UNDER THE SECURITIES EXCHANGE ACT OF 1934
(AMENDMENT NO. 2)*
SURETY CAPITAL CORPORATION
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(Name of Issuer)
Common Stock, par value $.01 per share
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(Title of Class of Securities)
868666207
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(CUSIP number)
Howard B. Adler, Esq.
Gibson, Dunn & Crutcher LLP
1050 Connecticut Avenue, N.W.
Washington, D.C. 20036
(202) 955-8589
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(Name, address and telephone number of person
authorized to receive notices and communications)
February 4, 1999
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(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(e), 13d-1(f) or 13d-1(g), check the
following box [ ].
Note. Schedules filed in paper format shall include a signed original
and five copies of the schedule, including all exhibits. See Rule 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 disclosures 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).
(Page 1 of 10 Pages)
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<TABLE>
<CAPTION>
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CUSIP NO. 868666207 13D/A PAGE 2 OF 10 PAGES
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<S> <C>
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1 NAME OF REPORTING PERSONS
S.S. OR I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS
CARLSON CAPITAL, L.P. I.R.S. IDENTIFICATION NO. 75-249-4317
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2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) [ ]
(b) [X]
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3 SEC USE ONLY
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4 SOURCE OF FUNDS*
WC
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5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEM 2(d) OR 2(e) [ ]
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6 CITIZENSHIP OR PLACE OF ORGANIZATION
UNITED STATES
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7 SOLE VOTING POWER
399,200
NUMBER OF -------------------------------------------------------------------------------------------------------
SHARES 8 SHARED VOTING POWER
BENEFICIALLY 0
OWNED BY
EACH -------------------------------------------------------------------------------------------------------
REPORTING 9 SOLE DISPOSITIVE POWER
PERSON WITH 399,200
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10 SHARED DISPOSITIVE POWER
0
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11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
399,200
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12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES* [ ]
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13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
6.9%
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14 TYPE OF REPORTING PERSON*
IA, PN
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</TABLE>
(Page 2 of 10 Pages)
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This Amendment No. 2 to the original statement of beneficial ownership
on Schedule 13D filed by the Reporting Person on August 27, 1998, as amended by
Amendment No. 1 on November 30, 1998, has been prepared to report the
purchase and sale 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 or Amendment No. 1 filing, as applicable.
ITEM 3. SOURCE AND AMOUNT OF FUNDS OR OTHER CONSIDERATION
Item 3 is hereby amended to include the following:
All of the funds used to make the purchase of additional Shares
acquired by the Reporting Person (as set forth on Exhibit A annexed hereto and
incorporated by reference herein) 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 discussions with management of the Issuer and has been contacted by other
shareholders of the Issuer concerning various operational and financial aspects
of the Issuer's business and various ways of maximizing long-term shareholder
value. The Reporting Person expects to continue to have such discussions with
management and other shareholders in the future. 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
13D.
ITEM 5. INTEREST IN SECURITIES OF THE ISSUER
Items 5(a), (b) and (c) are hereby amended as follows:
(a) This statement on Schedule 13D relates to 399,200 shares of
Common Stock deemed beneficially owned by the Reporting Person, which
constitute approximately 6.9% of the issued and outstanding shares of Common
Stock.
(b) The Reporting Person has sole voting and dispositive power
with respect to 399,200 shares of Common Stock.
(c) Since Amendment No. 1 to the original Schedule 13D, 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 and sales
were made on the open market.
ITEM 7. MATERIAL TO BE FILED AS EXHIBITS
Exhibit A: Transactions in Shares of Common Stock since
Amendment No. 1 to the Schedule 13D.
(Page 3 of 10 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.
<TABLE>
<S> <C> <C>
Dated: February 8, 1999
CARLSON CAPITAL, L.P.
/s/ Clint D. Carlson
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By: Clint D. Carlson, President of the General Partner
</TABLE>
(Page 4 of 10 Pages)
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EXHIBIT A
Transactions in Shares of Common Stock
Since Amendment No. 1 to Schedule 13D
Transactions by Account No. 1
<TABLE>
<CAPTION>
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Trade Type Trade Date Quantity Price ($)
---------- ---------- -------- ---------
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<S> <C> <C> <C>
BUY 12/03/98 155.00 2.3750
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BUY 12/04/98 65.00 2.3750
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BUY 12/07/98 35.00 2.3750
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BUY 12/08/98 5.00 2.3750
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</TABLE>
(Page 5 of 10 Pages)
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EXHIBIT A
Transactions in Shares of Common Stock
Since Amendment No. 1 to Schedule 13D
Transactions by Account No. 2
<TABLE>
<CAPTION>
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Trade Type Trade Date Quantity Price ($)
---------- ---------- -------- ---------
----------------------------------------------------------------------------------------
<S> <C> <C> <C>
BUY 12/03/98 910.00 2.3750
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BUY 12/04/98 405.00 2.3750
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BUY 12/07/98 130.00 2.3750
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BUY 12/08/98 110.00 2.3750
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BUY 12/31/98 1,000.00 2.0000
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SELL 02/03/99 -9,635.00 2.6520
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SELL 02/04/99 -19,855.00 3.0939
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SELL 02/04/99 -3,600.00 2.9688
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</TABLE>
(Page 6 of 10 Pages)
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EXHIBIT A
Transactions in Shares of Common Stock
Since Amendment No. 1 to Schedule 13D
Transactions by Account No. 3
<TABLE>
<CAPTION>
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Trade Type Trade Date Quantity Price ($)
---------- ---------- -------- ---------
----------------------------------------------------------------------------------------
<S> <C> <C> <C>
BUY 12/03/98 1,265.00 2.3750
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BUY 12/04/98 590.00 2.3750
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BUY 12/07/98 130.00 2.3750
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BUY 12/08/98 210.00 2.3750
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</TABLE>
(Page 7 of 10 Pages)
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EXHIBIT A
Transactions in Shares of Common Stock
Since Amendment No. 1 to Schedule 13D
Transactions by Account No. 5
<TABLE>
<CAPTION>
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Trade Type Trade Date Quantity Price ($)
---------- ---------- -------- ---------
----------------------------------------------------------------------------------------
<S> <C> <C> <C>
BUY 12/03/98 1,085.00 2.3750
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BUY 12/04/98 470.00 2.3750
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BUY 12/07/98 150.00 2.3750
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BUY 12/08/98 140.00 2.3750
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SELL 02/03/99 -10,760.00 2.6520
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SELL 02/04/99 -22,345.00 3.0939
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SELL 02/04/99 -4,060.00 2.9688
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</TABLE>
(Page 8 of 10 Pages)
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EXHIBIT A
Transactions in Shares of Common Stock
Since Amendment No. 1 to Schedule 13D
Transactions by Account No. 6
<TABLE>
<CAPTION>
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Trade Type Trade Date Quantity Price ($)
---------- ---------- -------- ---------
----------------------------------------------------------------------------------------
<S> <C> <C> <C>
BUY 12/03/98 145.00 2.3750
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BUY 12/04/98 120.00 2.3750
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SELL 02/03/99 -3,065.00 2.6520
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SELL 02/04/99 -6,065.00 3.0939
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SELL 02/04/99 -1,100.00 2.9688
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</TABLE>
(Page 9 of 10 Pages)
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EXHIBIT A
Transactions in Shares of Common Stock
Since Amendment No. 1 to Schedule 13D
Transactions by Account No. 7
<TABLE>
<CAPTION>
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Trade Type Trade Date Quantity Price ($)
---------- ---------- -------- ---------
----------------------------------------------------------------------------------------
<S> <C> <C> <C>
BUY 12/03/98 340.00 2.3750
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BUY 12/04/98 150.00 2.3750
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BUY 12/07/98 55.00 2.3750
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BUY 12/08/98 35.00 2.3750
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SELL 02/03/99 -3,440.00 2.6520
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SELL 02/04/99 -6,835.00 3.0939
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SELL 02/04/99 -1,240.00 2.9688
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</TABLE>
(Page 10 of 10 Pages)