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Rule 424(B)(3)
File No. 333-13285
This Third Supplement to Prospectus amends and supplements the Prospectus
dated March 9, 1998, as amended and supplemented (the "Prospectus"), of PennCorp
Financial Group, Inc. (the "Company") relating to the offer and sale by the
Selling Securityholders (as defined in the Prospectus) of (i) (x) up to
2,875,000 shares of $3.50 Series II Convertible Preferred Stock, par value $0.01
per share (the "Convertible Preferred Stock"), of the Company and (y) up to
4,118,911 shares of common stock, par value $0.01 per share (the "Common
Stock"), of the Company or such other number of shares of Common Stock resulting
from an adjustment to the conversion price of the Convertible Preferred Stock
pursuant to the antidilution provisions of the Certificate of Designation
governing the Convertible Preferred Stock issuable upon conversion of the
Convertible Preferred Stock, and (ii) the offer and sale by the Company of the
Common Stock issuable upon conversion of the Convertible Preferred Stock.
The following table sets forth certain information as of December 4, 1997
(except as otherwise indicated) as to the security ownership of the Selling
Securityholders. Except as set forth below, none of the Selling Securityholders
has had a material relationship with the Company or any of its predecessors or
affiliates within the past three years. The table includes information furnished
to the Company by The Trust Depository Company, the transfer agent for the
Convertible Preferred Stock and the Common Stock and by or on behalf of the
Selling Securityholders.
<TABLE>
<CAPTION>
SHARES OF CONVERTIBLE
PREFERRED STOCK
BENEFICIALLY OWNED PRIOR SHARES OF COMMON
TO THIS OFFERING NUMBER OF SHARES OF STOCK UNDERLYING
-------------------------- CONVERTIBLE CONVERTIBLE PREFERRED STOCK,
PERCENT OF PREFERRED STOCK ALL OF WHICH
TOTAL INCLUDED IN THIS ARE INCLUDED IN
NAME NUMBER OUTSTANDING OFFERING THIS OFFERING
---- ------- ----------- ------------------- ----------------------------
<S> <C> <C> <C> <C>
Alpine Associates............. 254,700(1) 8.9 254,700 364,900
Lipper Convertibles LP........ 244,300(3) 8.5 244,300 350,000
Highbridge International
LDC......................... 243,140(21) 8.5 243,140 348,338
Forest Fulcrum Fund LP........ 175,500(5) 6.1 175,500 251,433
General Motors Employees
Domestic Group Trust, Mellon
Bank, N.A., as trustee...... 224,550(2) 7.8 224,550 321,705
Salomon Smith Barney(*)....... 163,380(18) 5.7 163,380 234,069
WG Trading Co LP.............. 146,250(18) 5.1 146,250 209,527
MFS Total Return Fund......... 140,100(6) 4.9 140,100 200,716
Swiss Bank Corporation --
London Branch............... 127,500(5) 4.4 127,500 182,665
Forest Global Convert Fd Ser
A-S......................... 117,700(8) 4.1 117,700 168,624
Cincinnati Insurance
Company..................... 100,000(2) 3.5 100,000 143,266
GPZ Trading................... 98,000(9) 3.4 98,000 140,401
Putnam Convertible Income --
Growth Trust................ 83,700(10) 2.9 83,700 119,914
Pacific Horizon Capital Income
Fund........................ 75,000(11) 2.6 75,000 107,450
Donaldson, Lufkin & Jenrette
Securities
Corporation(**)............. 71,800(12) 2.5 71,800 102,865
Paloma Securities L.L.C. ..... 68,160 2.4 68,160 97,650
Oppenheimer Bond Fund for
Growth...................... 60,000(6) 2.1 60,000 85,960
Silverton International Fund
Limited..................... 52,440 1.8 52,440 75,129
Cincinnati Life Insurance
Company..................... 50,000(2) 1.7 50,000 71,633
</TABLE>
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<TABLE>
<CAPTION>
SHARES OF CONVERTIBLE
PREFERRED STOCK
BENEFICIALLY OWNED PRIOR SHARES OF COMMON
TO THIS OFFERING NUMBER OF SHARES OF STOCK UNDERLYING
-------------------------- CONVERTIBLE CONVERTIBLE PREFERRED STOCK,
PERCENT OF PREFERRED STOCK ALL OF WHICH
TOTAL INCLUDED IN THIS ARE INCLUDED IN
NAME NUMBER OUTSTANDING OFFERING THIS OFFERING
---- ------- ----------- ------------------- ----------------------------
<S> <C> <C> <C> <C>
Golden Rule Insurance
Company..................... 44,000 1.5 44,000 63,037
Motors Insurance
Corporation................. 43,450(2) 1.5 43,450 62,249
Aim Balanced Fund............. 40,000 1.4 40,000 57,307
Alexandra Global Investment
Fund I, Ltd. ............... 37,500(1) 1.3 37,500 53,725
BNP Arbitrage SNC............. 27,000(22) 0.9 27,000 38,682
The Alpine Group.............. 22,500(1) 0.8 22,500 32,235
Toronto Dominion (New York),
Inc......................... 19,780(14) 0.7 19,780 28,338
KA Trading L.P. .............. 17,500(2) 0.6 17,500 25,072
KA Management Ltd. ........... 17,500(2) 0.6 17,500 25,072
Q Investments, L.P. .......... 16,250(14) 0.6 16,250 23,281
Xerox Corporation............. 16,000 0.6 16,000 22,923
New Hampshire State Retirement
System...................... 12,900(10) 0.4 12,900 18,481
LLT LTD....................... 12,000(14) 0.4 12,000 17,192
Promutual..................... 10,800(10) 0.4 10,800 15,473
Hartford Fire Insurance
Company..................... 10,350(10) 0.4 10,350 14,828
Orrington Investments L.P. ... 9,950(15) 0.3 9,950 14,255
Putnam Convertible
Opportunities and Income
Trust....................... 9,390(10) 0.3 9,390 13,453
R(2) Investments, LDC......... 8,750(14) 0.3 8,750 12,536
TQA Vantage Fund, L.P. ....... 8,000(6) 0.3 8,000 11,461
General Motors Foundation,
Inc. ....................... 7,000(2) 0.2 7,000 10,029
TQA Vantage Plus Fund,
Ltd. ....................... 6,000(6) 0.2 6,000 8,596
TQA Leverage Fund, L.P. ...... 6,000(6) 0.2 6,000 8,596
Orrington International Fund
Ltd. ....................... 5,700(15) 0.2 5,700 8,166
Putnam Balanced Retirement
Fund........................ 5,300(10) 0.2 5,300 7,593
The Northwestern Mutual Life
Insurance Company........... 5,000(1)(17) 0.2 5,000 7,163
Boston College Endowment...... 4,850(10) 0.2 4,850 6,949
No. Dakota State Land......... 4,700(6) 0.2 4,700 6,734
TCW Galileo CVT Fund.......... 4,500(6) 0.2 4,500 6,447
Bank of America Convertible
Securities Fund............. 4,500 0.2 4,500 6,447
Pacific Innovation Trust
Capital Income Fund......... 3,850(11) 0.1 3,850 5,516
Museum of Fine Arts, Boston... 2,960(10) 0.1 2,960 4,241
University of Rochester....... 2,600(10) 0.1 2,600 3,725
Employee Benefit Convertible
Securities Fund............. 2,500 0.1 2,500 3,582
Jefferies & Co. Inc. ......... 650(19) *** 650 931
Putnam Funds Trust -- Putnam
High Yield Total Return
Fund........................ 435(10) *** 435 623
</TABLE>
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* Smith Barney Inc. was an underwriter in connection with the Company's 1996
Common Stock offering and an initial purchaser in connection with the
Company's 1996 private placement of preferred stock. In addition, on
February 18, 1998, the Company engaged Salomon Smith Barney to review
strategic alternatives for maximizing stockholder value. See "Recent
Developments."
** Donaldson, Lufkin & Jenrette Securities Corporation was an underwriter in
connection with the Company's 1996 Common Stock offering and an initial
purchaser in connection with the Company's 1996 private placement of
preferred stock.
*** Less than 0.1% after rounding.
(1) As of November 25, 1997.
(2) As of November 26, 1997.
(3) As of December 5, 1997.
(4) As of December 10, 1997.
(5) As of December 1, 1997.
(6) As of December 8, 1997.
(7) As of February 11, 1998.
(8) As of March 19, 1998.
(9) As of December 3, 1997.
(10) As of December 11, 1997.
(11) As of January 5, 1998.
(12) As of December 9, 1997.
(13) As of December 4, 1997.
(14) As of December 2, 1997.
(15) As of February 20, 1998.
(16) As of January 30, 1998.
(17) All such shares are held in The Northwestern Mutual Life Insurance Company
Group Annuity Separate Account.
(18) As of March 25, 1998.
(19) As of November 28, 1997.
(20) As of January 8, 1998.
(21) As of May 13, 1998.
(22) As of April 28, 1998.
No holder may offer Convertible Preferred Stock and Common Stock issued
upon conversion thereof pursuant to this Prospectus until such holder is
included as a Selling Securityholder in a supplement to this Prospectus.
Because the Selling Securityholders may offer all or some of the shares of
Convertible Preferred Stock and Common Stock issued upon conversion thereof
pursuant to the offering contemplated by this Prospectus, and because there are
currently no agreements, arrangements or understandings with respect to the sale
of any of the shares of Convertible Preferred Stock or underlying Common Stock,
no estimate can be given as to the number of shares of Convertible Preferred
Stock and Common Stock that will be held by the Selling Securityholders after
completion of this offering. See "Plan of Distribution."
The date of this Third Supplement to Prospectus is May 19, 1998.
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