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SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
SCHEDULE 13D
UNDER THE SECURITIES EXCHANGE ACT OF 1934
FREEPORT-MCMORAN SULPHUR INC.
(Name of Issuer)
COMMON STOCK, $0.01 PAR VALUE
(Title of Class of Securities)
356 71 R104
(CUSIP Number)
THOMAS O. HICKS
200 CRESCENT COURT
SUITE 1600
DALLAS, TEXAS 75201
(214) 740-7300
(Name, Address and Telephone Number of Person Authorized to Receive
Notices and Communications)
Copy to:
MICHAEL D. WORTLEY
VINSON & ELKINS L.L.P.
3700 TRAMMELL CROW CENTER
2001 ROSS AVENUE
DALLAS, TEXAS 75201
(214) 220-7732
AUGUST 31, 1998
(Date of Event which Requires Filing of this Statement on Schedule 13D)
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<TABLE>
<CAPTION>
CUSIP NO. 356 71 R104 Schedule 13D Page 2 of 7
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<S> <C> <C>
1 Name of Reporting Person, S.S. or I.R.S. Identification No. of
Above Person
HM 4 FSC, L.P.
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2 Check the appropriate box if a member of a group (a) |_|
(b) |_|
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3 SEC Use Only
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4 Source of Funds
AF
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5 Check Box if Disclosure of Legal Proceedings is Required |_|
Pursuant to Items 2(d) or 2(e)
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6 Citizenship or Place of Organization
State of Texas
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Number of Shares 7 Sole Voting Power
0
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Beneficially 8 Shared Voting Power
Owned 1,171,900
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by Each Reporting 9 Sole Dispositive Power
0
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Person With 10 Shared Dispositive Power
1,171,900
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11 Aggregate Amount Beneficially Owned by Each Reporting
Person
1,171,900
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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)
12.03%
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14 Type of Reporting Person
PN
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</TABLE>
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<TABLE>
<CAPTION>
CUSIP NO. 356 71 R104 Schedule 13D Page 3 of 7
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<S> <C> <C>
1 Name of Reporting Person, S.S. or I.R.S. Identification No. of
Above Person
Hicks, Muse Fund IV LLC
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2 Check the appropriate box if a member of a group (a) |_|
(b) |_|
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3 SEC Use Only
- ----------------------- -----------------------------------------------------------------------------
4 Source of Funds
AF
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5 Check Box if Disclosure of Legal Proceedings is Required |_|
Pursuant to Items 2(d) or 2(e)
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6 Citizenship or Place of Organization
State of Texas
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Number of Shares 7 Sole Voting Power
0
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Beneficially 8 Shared Voting Power
Owned 1,171,900
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by Each Reporting 9 Sole Dispositive Power
0
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Person With 10 Shared Dispositive Power
1,171,900
- ----------------------- -----------------------------------------------------------------------------
11 Aggregate Amount Beneficially Owned by Each Reporting
Person
1,171,900
- ----------------------- -----------------------------------------------------------------------------
12 Check Box if the Aggregate Amount in Row (11) Excludes |_|
Certain Shares
- ----------------------- -----------------------------------------------------------------------------
13 Percent of Class Represented by Amount in Row (11)
12.03%
- ----------------------- -----------------------------------------------------------------------------
14 Type of Reporting Person
OO
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</TABLE>
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<TABLE>
<CAPTION>
CUSIP NO. 356 71 R104 Schedule 13D Page 4 of 7
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<S> <C> <C>
1 Name of Reporting Person, S.S. or I.R.S. Identification No. of
Above Person
Thomas O. Hicks
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2 Check the appropriate box if a member of a group (a) |_|
(b) |_|
- ----------------------- ----------------------------------------------------------------------
3 SEC Use Only
- ----------------------- ----------------------------------------------------------------------
4 Source of Funds
AF
- ----------------------- ----------------------------------------------------------------------
5 Check Box if Disclosure of Legal Proceedings is Required |_|
Pursuant to Items 2(d) or 2(e)
- ----------------------- ----------------------------------------------------------------------
6 Citizenship or Place of Organization
State of Texas
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Number of Shares 7 Sole Voting Power
0
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Beneficially 8 Shared Voting Power
Owned 1,171,900
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by Each Reporting 9 Sole Dispositive Power
0
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Person With 10 Shared Dispositive Power
1,171,900
- ----------------------- ----------------------------------------------------------------------
11 Aggregate Amount Beneficially Owned by Each Reporting
Person
1,171,900
- ----------------------- ----------------------------------------------------------------------
12 Check Box if the Aggregate Amount in Row (11) Excludes |_|
Certain Shares
- ----------------------- ----------------------------------------------------------------------
13 Percent of Class Represented by Amount in Row (11)
12.03%
- ----------------------- ----------------------------------------------------------------------
14 Type of Reporting Person
IN
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</TABLE>
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Schedule 13D Page 5 of 7
ITEM 1. SECURITY AND ISSUER.
The class of equity securities to which this statement on Schedule 13D
relates is the common stock, par value $0.01 per share (the "Common Stock"), of
Freeport-McMoRan Sulphur Inc., a Delaware corporation (the "Company). The
address of the Company's principal executive offices is 1615 Poydras Street, New
Orleans 70112.
ITEM 2. IDENTITY AND BACKGROUND.
(a) through (f)
This Schedule 13D is being filed by HM 4 FSC, L.P., a Texas limited
partnership (the "Purchaser"), Hicks, Muse Fund IV LLC, a Texas limited
liability company ("HM IV"), and Thomas O. Hicks, a United States citizen
("Hicks"). Purchaser, HM IV and Hicks are collectively referred to herein as the
"Reporting Persons."
HM IV is the general partner of the Purchaser. Hicks is the sole member
of HM IV. The Purchaser is a newly formed limited partnership whose principal
business is purchasing, acquiring, holding, voting, and selling or otherwise
disposing of capital stock and stock equivalents of the Company (see Item 4).
The Purchaser is the successor by merger to HMFSC LLC, a Texas limited liability
company, the sole member of which was HM IV, which acquired the 1,171,900 shares
of Common Stock (the "Shares") that are the subject of this report on August 31,
1998 and was merged with and into the Purchaser on September 10, 1998.
References to the activities of the Purchaser in this report include the
activities of HMFSC LLC prior to September 10, 1998.
The principal business and office address of each Reporting Person is
200 Crescent Court, Suite 1600, Dallas, Texas 75201. Hicks is a controlling
person, the Chairman of the Board and Chief Executive Officer of Hicks, Muse,
Tate & Furst Incorporated ("HMT&F"), a private investment firm specializing in
acquisitions, recapitalizations and other principal investing activities.
None of the Reporting Persons, during the last five years, has (i) been
convicted in a criminal proceeding (excluding traffic violations or similar
misdemeanors) or (ii) been party to a civil proceeding of a judicial or
administrative body of competent jurisdiction and as a result of which such
person was or is subject to a judgment, decree of 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.
ITEM 3. SOURCES AND AMOUNT OF FUNDS OR OTHER CONSIDERATION.
The Purchaser utilized a loan of $10,511,943 from Hicks, Muse & Co.
Partners, L.P., a Texas limited partnership that is an affiliate of the
Purchaser ("HMCo"), to purchase the 1,171,900 shares of Common Stock
beneficially owned by the Purchaser and pay related fees and expenses. HMCo
obtained the funds loaned to the Purchaser from its working capital. The
Purchaser intends to repay the loan from HMCo within the next 30 days with
capital contributions from its partners.
ITEM 4. PURPOSE OF THE TRANSACTION.
The purpose of the acquisition of the Shares was to implement the
Reporting Persons' plan to obtain a substantial, but not majority, investment
interest in the Company.
(a) The Reporting Persons may purchase additional shares of
Common Stock in open market or private transactions from stockholders of the
Company. The Reporting Persons also may offer to purchase additional shares of
Common Stock or Common Stock equivalents directly from the Company at prices and
upon such other terms as may be negotiated by the Reporting Persons and the
Company. It is the present intention of the Reporting Persons that any
additional shares of Common Stock or Common Stock equivalents of the Company
acquired by the Purchaser, when added to the Shares, would not constitute on a
fully-diluted basis a majority ownership interest in the outstanding shares of
Common Stock.
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Schedule 13D Page 6 of 7
(b), (c), (d), (e), (f), (g), (h), (i) and (j) Except for the
Reporting Persons present intention to vote the Shares in favor of the proposed
merger of the Company with and into Brimstone LLC pursuant to the terms of that
certain Agreement and Plan of Mergers dated as of August 1, 1998 by and among
McMoran Exploration Co., McMoran Oil and Gas Co., MOXY LLC, the Company and
Brimstone LLC, the Reporting Persons have no plans or proposals which relate to
or would result in (i) an extraordinary corporate transaction, such as a merger,
reorganization or liquidation, involving the Company or any of its subsidiaries,
(ii) a sale or transfer of a material amount of assets of the Company or any of
its subsidiaries, (iii) any change in the present board of directors or
management of the Company, (iv) any material change in the present
capitalization or dividend policy of the Company, (v) any other material change
to the Company's business or corporate structure, (vi) any changes in the
Company's certificate of incorporation or bylaws or, subject to the matters
discussed in paragraphs (a) and (d) of this Item 4, other actions which may
impede the acquisition or control of the Company by any person, (vii) the Common
Stock ceasing to be authorized to be quoted on the NASDAQ National Market
System, (viii) the Common Stock becoming eligible for termination of
registration pursuant to Section 12(g)(4) of the Securities Exchange Act of
1934, or (ix) any action similar to any of the foregoing.
ITEM 5. INTEREST IN SECURITIES OF THE ISSUER.
(a) and (b) The Purchaser is the record owner of 1,171,900
shares of Common Stock, or 12.03% of the outstanding shares of Common Stock. As
a result of the relationship of Hicks to HM IV and of HM IV to the Purchaser,
each Reporting Person may be deemed to have shared power to vote, or direct the
vote of, and to dispose, or direct the disposition of, the Shares. Hicks and HM
IV each disclaim beneficial ownership of the Shares.
(c) Within the last 60 days, the Purchaser acquired the number
of the Shares indicated, on the date, for the per share price and in the manner
indicated as follows:
NUMBER PRICE
OF SHARES DATE ACQUIRED PER SHARE($)(1) MANNER
--------- ------------- --------------- --------------------
609,388 August 31, 1998 $9.00 open market purchase
562,512 August 31, 1998 $8.9375 open market purchase
- --------------------
(1) Inclusive of brokerage commissions or dealer mark-ups.
(d) No other person is known to have the right to receive or
the power to direct the receipt of dividends from, or the proceeds from the sale
of, the Shares.
(e) Not applicable.
ITEM 6. CONTRACTS, ARRANGEMENTS, UNDERSTANDINGS OR RELATIONSHIPS WITH
RESPECT TO SECURITIES OF THE ISSUER.
None.
ITEM 7. MATERIAL TO BE FILED AS EXHIBITS
99.1 Power of Attorney for Thomas O. Hicks. (Filed as Exhibit
99.5 to Schedule 13D regarding Coho Energy, Inc. filed with
the Securities and Exchange Commission on May 20, 1998 and
incorporated herein by reference.)
99.2 Joint Filing Agreement, dated September 10, 1998, among HM 4
FSC, L.P., Hicks, Muse Fund IV LLC, and Thomas O. Hicks.
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Schedule 13D Page 7 of 7
SIGNATURES
After due inquiry and to the best of my knowledge and belief, the
undersigned certify that the information set forth in this statement is true,
complete and correct.
Dated: September 10, 1998 HM 4 FSC, L.P.
By: Hicks, Muse Fund IV LLC, its sole
general partner
By: /s/ MICHAEL D. SALIM
--------------------------------
Name: Michael D. Salim
Title: Chief Financial Officer and
Senior Vice President
Dated: September 10, 1998 HICKS, MUSE FUND IV LLC
By: /s/ MICHAEL D. SALIM
-----------------------------------
Name: Michael D. Salim
Title: Chief Financial Officer and
Senior Vice President
Dated: September 10, 1998 THOMAS O. HICKS
/s/ DAVID W. KNICKEL
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By: David W. Knickel, Attorney-in-Fact
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Schedule 13D
EXHIBIT INDEX
99.1 Power of Attorney for Thomas O. Hicks. (Filed as Exhibit 99.5
to Schedule 13D regarding Coho Energy, Inc. filed with the
Securities and Exchange Commission on May 20, 1998 and
incorporated herein by reference.)
99.2 Joint Filing Agreement, dated September 10, 1998, among HM 4
FSC, L.P., Hicks, Muse Fund IV LLC, and Thomas O. Hicks.
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EXHIBIT 99.2
AGREEMENT AMONG FILING PARTIES
THIS AGREEMENT is made and entered into on September 10, 1998, by and
among HM 4 FSC, L.P., a Texas limited partnership, Hicks, Muse Fund IV LLC, a
Texas limited liability company, and Thomas O. Hicks, an individual
(collectively referred to herein as the "Filing Parties").
WHEREAS, Rule 13d-1(f)(1)(iii) under the Securities Exchange Act of
1934, as amended (the "Act"), requires that, when a Schedule 13D is filed on
behalf of more than one person, an agreement be executed and filed as an exhibit
to the Schedule 13D reflecting that the Schedule 13D is being filed on behalf of
all such persons:
NOW, THEREFORE, in consideration of the premises and the mutual
promises stated herein, the Filing Parties hereby agree as follows:
1. Each Filing Party agrees that a single Schedule 13D (and any
amendments thereto) shall be filed jointly on behalf of all the Filing Parties
with respect to the shares of common stock, $.01 par value per share, of
Freeport McMoRan Sulphur Inc., a Delaware corporation.
2. Each Filing Party acknowledges and agrees that, pursuant to Rule
13d-1(f)(1) under the Act, each Filing Party individually is (i) eligible to use
the Schedule 13D and (ii) responsible for the timely filing of such Schedule 13D
and any amendments thereto and for the completeness and accuracy of the
information concerning such Filing Party contained in such Schedule 13D. None of
the Filing Parties, however, shall be responsible for the completeness or
accuracy of information concerning any other Filing Party contained in such
Schedule 13d, or any amendments thereto, unless such Filing Party knows or has
reason to believe that such information is incomplete or inaccurate.
3. This agreement shall not be assignable by any Filing Party. Any
assignment in violation of the foregoing shall be null and void.
4. This agreement shall terminate upon the written notice of
termination given by any Filing Party to the other Filing Parties.
5. This agreement may be executed in several counterparts, each of
which shall be deemed to be an original copy hereof.
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IN WITNESS WHEREOF, the undersigned hereby executed this Agreement
Among Filing Parties as of the date or dates indicated below.
THOMAS O. HICKS
Date: September 10, 1998 /s/ DAVID W. KNICKEL
--------------------------------------
By: David W. Knickel, Attorney-in-Fact
HM 4 FSC, L.P.
By: Hicks, Muse Fund IV LLC, its sole
general partner
Date: September 10, 1998 By: /s/ MICHAEL D. SALIM
--------------------------------
Name: Michael D. Salim
Title: Chief Financial Officer and
Senior Vice President
HICKS, MUSE FUND IV LLC
Date: September 10, 1998 By: /s/ MICHAEL D. SALIM
-----------------------------------
Name: Michael D. Salim
Title: Chief Financial Officer and
Senior Vice President
2
