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Filed Pursuant to Rule 424(B)(3)
File No. 333-13285
This First Supplement to Prospectus amends and supplements the Prospectus
dated March 9, 1998 (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
TO OFFERING NUMBER OF SHARES OF
------------------------- CONVERTIBLE
PERCENT OF PREFERRED STOCK SHARES OF COMMON
TOTAL INCLUDED IN THIS STOCK UNDERLYING
NAME NUMBER OUTSTANDING OFFERING CONVERTIBLE PREFERRED STOCK
---- --------- ----------- ------------------- ---------------------------
<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
General Motors Employees
Domestic Group Trust, Mellon
Bank, N.A., as trustee........ 224,550(2) 7.8 224,550 321,705
Highbridge International LDC.... 218,140(4) 7.6 218,140 312,521
Forest Fulcrum Fund LP.......... 175,500(5) 6.1 175,500 251,433
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
Salomon Smith Barney (*)........ 124,850(7) 4.3 124,850 178,868
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
TO OFFERING NUMBER OF SHARES OF
------------------------- CONVERTIBLE
PERCENT OF PREFERRED STOCK SHARES OF COMMON
TOTAL INCLUDED IN THIS STOCK UNDERLYING
NAME NUMBER OUTSTANDING OFFERING CONVERTIBLE PREFERRED STOCK
---- --------- ----------- ------------------- ---------------------------
<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 1.3 37,500 53,725
State of Connecticut Combined
Investment Funds.............. 33,000(8) 1.1 33,000 47,278
The Alpine Group................ 22,500 0.8 22,500 32,235
Delta Air Lines Master Trust.... 22,000(2) 0.8 22,000 31,519
Toronto Dominion (New York),
Inc........................... 19,780(13) 0.7 19,780 28,338
Vanguard Convertible Securities
Fund, Inc..................... 19,400 0.7 19,400 27,794
Raytheon Company Master Pension
Trust......................... 18,400 0.6 18,400 26,360
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(5) 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
State Employees Retirement Fund
of the State of Delaware...... 9,600(12) 0.3 9,600 13,754
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
Combined Insurance Company of
America....................... 8,500 0.3 8,500 12,178
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 Levage 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(16) 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
</TABLE>
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<TABLE>
<CAPTION>
SHARES OF CONVERTIBLE
PREFERRED STOCK
BENEFICIALLY OWNED PRIOR
TO OFFERING NUMBER OF SHARES OF
------------------------- CONVERTIBLE
PERCENT OF PREFERRED STOCK SHARES OF COMMON
TOTAL INCLUDED IN THIS STOCK UNDERLYING
NAME NUMBER OUTSTANDING OFFERING CONVERTIBLE PREFERRED STOCK
---- --------- ----------- ------------------- ---------------------------
<S> <C> <C> <C> <C>
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
OCM Convertible Limited
Partnership................... 3,100(8) 0.1 3,100 4,441
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(17) *** 650 931
Putnam Funds Trust -- Putnam
High Yield Total Return
Fund.......................... 435(10) *** 435 623
Unnamed holders of the
Convertible Preferred Stock or
any future transferees,
pledgees, donees or successors
of or from such unnamed
holders(18)................... 51,395 1.8 51,395 73,607
--------- ----- --------- ---------
Total........................... 2,875,000 100.0 2,875,000 4,118,911
========= ===== ========= =========
</TABLE>
- ---------------
* 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) January 30, 1998.
(17) All such shares are held in The Northwestern Mutual Life Insurance Company
Group Annuity Separate Account.
(18) As of November 28, 1997.
(19) No such holder may offer Convertible Preferred Stock pursuant to this
Prospectus until such holder is included as a Selling Securityholder in a
supplement to this Prospectus.
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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 First Supplement to Prospectus is March 24, 1998.
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