SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
SCHEDULE 13G
UNDER THE SECURITIES EXCHANGE ACT OF 1934*
Terra Industries Inc.
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(Name of Issuer)
Common Shares
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(Title of Class of Securities)
880915103
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(CUSIP Number)
March 5, 2010
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(Date of Event Which Requires Filing of this Statement)
Check the appropriate box to designate the rule pursuant to which this Schedule
is filed:
|_| Rule 13d-1(b)
|X| Rule 13d-1(c)
|_| Rule 13d-1(d)
---------------------
* 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 the 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 11 Pages
----------------------------
CUSIP No. 880915103
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1 NAME OF REPORTING PERSONS
Mason Capital Management LLC, in its capacity as investment manager
for certain investment funds and managed accounts
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2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP
(See Instructions) (a) |_|
(b) |X|
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3 SEC USE ONLY
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4 CITIZENSHIP OR PLACE OF ORGANIZATION
Delaware
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NUMBER OF 5 SOLE VOTING POWER
SHARES
BENEFICIALLY 5,770,062
OWNED BY -----------------------------------------------------------
EACH 6 SHARED VOTING POWER
REPORTING
PERSON WITH -0-
-----------------------------------------------------------
7 SOLE DISPOSITIVE POWER
5,770,062
-----------------------------------------------------------
8 SHARED DISPOSITIVE POWER
-0-
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9 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
5,770,062 Common Shares
--------------------------------------------------------------------------------
10 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (9) EXCLUDES |_|
CERTAIN SHARES (See Instructions)
--------------------------------------------------------------------------------
11 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (9)
5.8%
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12 TYPE OF REPORTING PERSON (See Instructions)
OO
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Page 2 of 11 Pages
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CUSIP No. 880915103
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1 NAME OF REPORTING PERSONS
Kenneth M. Garschina
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2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP
(See Instructions) (a) |_|
(b) |X|
--------------------------------------------------------------------------------
3 SEC USE ONLY
--------------------------------------------------------------------------------
4 CITIZENSHIP OR PLACE OF ORGANIZATION
United States
--------------------------------------------------------------------------------
NUMBER OF 5 SOLE VOTING POWER
SHARES
BENEFICIALLY -0-
OWNED BY -----------------------------------------------------------
EACH 6 SHARED VOTING POWER
REPORTING
PERSON WITH 5,770,062
-----------------------------------------------------------
7 SOLE DISPOSITIVE POWER
-0-
-----------------------------------------------------------
8 SHARED DISPOSITIVE POWER
5,770,062
--------------------------------------------------------------------------------
9 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
5,770,062 Common Shares
--------------------------------------------------------------------------------
10 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (9) EXCLUDES |_|
CERTAIN SHARES (See Instructions)
--------------------------------------------------------------------------------
11 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (9)
5.8%
--------------------------------------------------------------------------------
12 TYPE OF REPORTING PERSON (See Instructions)
IN
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Page 3 of 11 Pages
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CUSIP No. 880915103
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1 NAME OF REPORTING PERSONS
Michael E. Martino
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2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP
(See Instructions) (a) |_|
(b) |X|
--------------------------------------------------------------------------------
3 SEC USE ONLY
--------------------------------------------------------------------------------
4 CITIZENSHIP OR PLACE OF ORGANIZATION
United States
--------------------------------------------------------------------------------
NUMBER OF 5 SOLE VOTING POWER
SHARES
BENEFICIALLY -0-
OWNED BY -----------------------------------------------------------
EACH 6 SHARED VOTING POWER
REPORTING
PERSON WITH 5,770,062
-----------------------------------------------------------
7 SOLE DISPOSITIVE POWER
-0-
-----------------------------------------------------------
8 SHARED DISPOSITIVE POWER
5,770,062
--------------------------------------------------------------------------------
9 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
5,770,062 Common Shares
--------------------------------------------------------------------------------
10 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (9) EXCLUDES |_|
CERTAIN SHARES (See Instructions)
--------------------------------------------------------------------------------
11 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (9)
5.8%
--------------------------------------------------------------------------------
12 TYPE OF REPORTING PERSON (See Instructions)
IN
--------------------------------------------------------------------------------
Page 4 of 11 Pages
SCHEDULE 13G
ITEM 1(a). NAME OF ISSUER:
--------------
Terra Industries Inc.
ITEM 1(b). ADDRESS OF ISSUER'S PRINCIPAL EXECUTIVE OFFICES:
-----------------------------------------------
Terra Centre
600 Fourth Street
PO Box 6000
Sioux City, IA 51102-6000
ITEM 2(a). NAME OF PERSON FILING:
---------------------
This Schedule is being filed jointly by the following reporting
persons (hereinafter sometimes collectively referred to as the "Reporting
Persons") pursuant to an Agreement of Joint Filing attached hereto as Exhibit A:
(i) Mason Capital Management LLC, a Delaware limited
liability company ("Mason Management");
(ii) Kenneth M. Garschina; and
(iii) Michael E. Martino.
Mason Management, Mr. Garschina and Mr. Martino are filing this
Schedule with respect to 5,770,062 Common Shares (the "Common Shares") directly
owned by Mason Capital L.P., a Delaware limited partnership ("Mason Capital
LP"), Mason Capital Master Fund, L.P., a Cayman Islands exempted limited
partnership ("Mason Capital Master Fund"), and certain other funds and accounts
(the "Managed Accounts").
Mason Management is the investment manager of each of Mason
Capital LP, Mason Capital Master Fund and the Managed Accounts, and Mason
Management may be deemed to have beneficial ownership over the Common Shares
reported in this Schedule by virtue of the authority granted to Mason Management
by Mason Capital LP, Mason Capital Master Fund and the Managed Accounts to vote
and dispose of such shares.
Mr. Garschina and Mr. Martino are managing principals of Mason
Management.
ITEM 2(b). ADDRESS OF PRINCIPAL BUSINESS OFFICE OR, IF NONE, RESIDENCE:
------------------------------------------------------------
The principal business office address of Mason Management, Mr.
Garschina and Mr. Martino is:
110 East 59th Street
New York, New York 10022
Page 5 of 11 Pages
ITEM 2(c). CITIZENSHIP:
-----------
The place of organization or citizenship of each Reporting
Person is as follows:
Name of Reporting Person Place of Organization/Citizenship
------------------------ ---------------------------------
Mason Capital Management LLC Delaware
Kenneth M. Garschina United States
Michael E. Martino United States
ITEM 2(d). TITLE OF CLASS OF SECURITIES:
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Common Shares
ITEM 2(e). CUSIP NUMBER:
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880915103
ITEM 3. IF THIS STATEMENT IS FILED PURSUANT TO ss.ss. 240.13d-1(b), OR
--------------------------------------------------------------
240.13d-2(b) OR (c), CHECK WHETHER THE PERSON FILING IS A:
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Not applicable.
ITEM 4. OWNERSHIP.
---------
Provide the following information regarding the aggregate number
and percentage of the class of securities of the issuer identified in Item 1.
(i) Mason Capital Management LLC
----------------------------
(a) Amount beneficially owned: 5,770,062.
(b) Percent of class: 5.8%.
(c) Number of shares as to which the person has:
(i) Sole power to vote or direct the vote
5,770,062.
(ii) Shared power to vote or direct the vote -0-.
(iii) Sole power to dispose or direct the
disposition of 5,770,062.
(iv) Shared power to dispose or direct the
disposition of -0-.
Page 6 of 11 Pages
(ii) Kenneth M. Garschina
--------------------
(a) Amount beneficially owned: 5,770,062.
(b) Percent of class: 5.8%.
(c) Number of shares as to which the person has:
(i) Sole power to vote or direct the vote -0-.
(ii) Shared power to vote or direct the vote
5,770,062.
(iii) Sole power to dispose or direct the
disposition of -0-.
(iv) Shared power to dispose or direct the
disposition of 5,770,062.
(iii) Michael E. Martino
------------------
(a) Amount beneficially owned: 5,770,062.
(b) Percent of class: 5.8%.
(c) Number of shares as to which the person has:
(i) Sole power to vote or direct the vote -0-.
(ii) Shared power to vote or direct the vote
5,770,062.
(iii) Sole power to dispose or direct the
disposition of -0-.
(iv) Shared power to dispose or direct the
disposition of 5,770,062.
The number of shares beneficially owned and the percentage of
outstanding shares represented thereby for each Reporting Person have been
computed in accordance with Rule 13d-3 under the Securities Exchange Act of
1934, as amended. The percentages of ownership described above are based on
100,105,516 Common Shares outstanding as of February 25, 2010, as reported in
the issuer's Annual Report on Form 10-K filed with the Securities and Exchange
Commission on February 25, 2010.
ITEM 5. OWNERSHIP OF FIVE PERCENT OR LESS OF A CLASS.
--------------------------------------------
If this statement is being filed to report the fact that as of
the date hereof the reporting person has ceased to be the beneficial owner of
more than five percent of the class of securities, check the following |_|.
Page 7 of 11 Pages
ITEM 6. OWNERSHIP OF MORE THAN FIVE PERCENT ON BEHALF OF ANOTHER PERSON.
---------------------------------------------------------------
The right to receive dividends from, or the proceeds from the
sale of, all Common Shares reported in this Schedule as beneficially owned by
Mason Management, Mr. Garschina and Mr. Martino is held by Mason Capital LP,
Mason Capital Master Fund or the Managed Accounts, as the case may be, all of
which are the advisory clients of Mason Management. To the knowledge of the
Reporting Persons, none of these advisory clients holds such right with respect
to more than five percent of the outstanding Common Shares. Mason Management,
Mr. Garschina and Mr. Martino disclaim beneficial ownership of all Common Shares
reported in this Schedule pursuant to Rule 13d-4 under the Securities Exchange
Act of 1934, as amended.
ITEM 7. IDENTIFICATION AND CLASSIFICATION OF THE SUBSIDIARY WHICH
---------------------------------------------------------
ACQUIRED THE SECURITIES BEING REPORTED ON BY THE PARENT
--------------------------------------------------------
HOLDING COMPANY OR CONTROL PERSON.
----------------------------------
Not applicable.
ITEM 8. IDENTIFICATION AND CLASSIFICATION OF MEMBERS OF THE GROUP.
---------------------------------------------------------
Not applicable.
ITEM 9. NOTICE OF DISSOLUTION OF GROUP.
------------------------------
Not applicable.
Page 8 of 11 Pages
ITEM 10. CERTIFICATION.
-------------
By signing below I certify that, to the best of my knowledge and
belief, the securities referred to above were not acquired and are not held for
the purpose of or with the effect of changing or influencing the control of the
issuer of the securities and were not acquired and are not held in connection
with or as a participant in any transaction having that purpose or effect.
SIGNATURE
---------
After reasonable inquiry and to the best of the knowledge and
belief of the undersigned Reporting Person, the undersigned Reporting Person
certifies that the information set forth in this statement with respect to it is
true, complete and correct.
Dated: March 15, 2010
MASON CAPITAL MANAGEMENT LLC
By: /s/ John Grizzetti
----------------------------
John Grizzetti
Chief Financial Officer
Page 9 of 11 Pages
ITEM 10. CERTIFICATION.
-------------
By signing below I certify that, to the best of my knowledge and
belief, the securities referred to above were not acquired and are not held for
the purpose of or with the effect of changing or influencing the control of the
issuer of the securities and were not acquired and are not held in connection
with or as a participant in any transaction having that purpose or effect.
SIGNATURE
---------
After reasonable inquiry and to the best of the knowledge and
belief of the undersigned Reporting Person, the undersigned Reporting Person
certifies that the information set forth in this statement with respect to him
is true, complete and correct.
Dated: March 15, 2010
/s/ Kenneth M. Garschina
----------------------------
Kenneth M. Garschina
Page 10 of 11 Pages
ITEM 10. CERTIFICATION.
-------------
By signing below I certify that, to the best of my knowledge and
belief, the securities referred to above were not acquired and are not held for
the purpose of or with the effect of changing or influencing the control of the
issuer of the securities and were not acquired and are not held in connection
with or as a participant in any transaction having that purpose or effect.
SIGNATURE
---------
After reasonable inquiry and to the best of the knowledge and
belief of the undersigned Reporting Person, the undersigned Reporting Person
certifies that the information set forth in this statement with respect to him
is true, complete and correct.
Dated: March 15, 2010
/s/ Michael E. Martino
----------------------------
Michael E. Martino
Page 11 of 11 Pages
EXHIBIT A
AGREEMENT OF JOINT FILING
TERRA INDUSTRIES INC.
COMMON SHARES
In accordance with Rule 13d-1(k) under the Securities Exchange Act of
1934, as amended, the undersigned hereby confirm the agreement by and among them
to the joint filing on behalf of them of a Statement on Schedule 13G and any and
all amendments thereto, with respect to the above referenced securities and that
this Agreement be included as an Exhibit to such filing.
This Agreement may be executed in any number of counterparts, each of
which shall be deemed to be an original and all of which together shall be
deemed to constitute one and the same Agreement.
IN WITNESS WHEREOF, the undersigned hereby execute this Agreement as of
this 15th day of March, 2010.
MASON CAPITAL MANAGEMENT LLC
By: /s/ John Grizzetti
----------------------------
John Grizzetti
Chief Financial Officer
/s/ Kenneth M. Garschina
----------------------------
Kenneth M. Garschina
/s/ Michael E. Martino
----------------------------
Michael E. Martino