Filed pursuant to Rule 424(b)(3) and 424(c)
Registration No. 333-68922
PROSPECTUS SUPPLEMENT NO. 2
(TO PROSPECTUS DATED OCTOBER 19, 2001)
$567,285,000
LEGG MASON, INC.
LIQUID YIELD OPTION-TM- NOTES DUE 2031
(ZERO COUPON--SENIOR)
AND
COMMON STOCK ISSUABLE UPON CONVERSION OF THE LYONS
---------------------
This document supplements the prospectus dated October 19, 2001 of Legg
Mason, Inc. relating to the resale by certain holders of LYONs who are named as
selling security holders of up to $567,285,000 aggregate principal amount at
maturity of LYONs and the shares of common stock issuable upon conversion of the
LYONS.
You should read this prospectus supplement in conjunction with the
prospectus dated October 19, 2001. This prospectus supplement is qualified by
reference to the prospectus dated October 19, 2001, except to the extent that
the information in this prospectus supplement supersedes the information
contained in the October 19, 2001 prospectus.
The table of selling security holders beginning on page 39 of the prospectus
is hereby amended to add the entities named below as selling security holders:
PRINCIPAL AMOUNT NUMBER OF
AT MATURITY OF SHARES OF
LYONS BENEFICIALLY PERCENTAGE COMMON STOCK PERCENTAGE OF
OWNED THAT OF LYONS THAT MAY BE COMMON STOCK
NAME AND ADDRESS: MAY BE SOLD OUTSTANDING SOLD(1)(4) OUTSTANDING(2)
----------------- ------------------ ----------- ------------ --------------
Morgan Stanley & Co................... $20,800,000 * 160,289 *
1585 Broadway
New York, NY 10036
After giving effect to the addition of the foregoing selling security
holders, the table of selling security holders reads as follows:
SELLING SECURITY HOLDERS
PRINCIPAL AMOUNT NUMBER OF
AT MATURITY OF SHARES OF
LYONS BENEFICIALLY PERCENTAGE COMMON STOCK PERCENTAGE OF
OWNED THAT OF LYONS THAT MAY BE COMMON STOCK
NAME AND ADDRESS: MAY BE SOLD OUTSTANDING SOLD(1)(4) OUTSTANDING(2)
----------------- ------------------ ----------- ------------ --------------
AIG SoundShore Opportunity Holding
Fund Ltd. .......................... $ 3,264,000 * 25,153 *
c/o DKR Management Company, Inc.
1281 East Main Street
3rd Floor
Stamford, CT 06902
AIG SoundShore Strategic Holding Fund
Ltd. ............................... $ 1,836,000 * 14,149 *
c/o DKR Management Company, Inc.
1281 East Main Street
3rd Floor
Stamford, CT 06902
Allstate Insurance Company............ $ 2,200,000 * 16,954 *
3075 Sanders Road
Suite G6B
Northbrook, IL 60062
Allstate Life Insurance Company....... $ 5,050,000 * 38,916 *
3075 Sanders
Road Suite G6B
Northbrook, IL 60062
Argent Classic Convertible Arbitrage
Fund (Bermuda) Ltd.................. $ 6,800,000 1.20% 52,402 *
73 Front Street
Hamilton HM 12
Bermuda
Argent Classic Convertible Arbitrage
Fund L.P. .......................... $ 5,000,000 * 38,531 *
500 West Putnam Avenue
3rd Floor
Greenwich, CT 06830-6086
Argent Classic Arbitrage Fund Ltd..... $ 5,000,000 * 38,531 *
500 West Putnam Avenue
3rd Floor
Greenwich, CT 06830-6086
Continental Assurance Company......... $ 4,700,000 * 36,219 *
On Behalf of its Separate Account
(E)
CNA Plaza, 23 South
Chicago, IL 60685
Continental Casualty Company.......... $ 28,500,000 * 219,627 *
CNA Plaza, 23 South
Chicago, IL 60685
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PRINCIPAL AMOUNT NUMBER OF
AT MATURITY OF SHARES OF
LYONS BENEFICIALLY PERCENTAGE COMMON STOCK PERCENTAGE OF
OWNED THAT OF LYONS THAT MAY BE COMMON STOCK
NAME AND ADDRESS: MAY BE SOLD OUTSTANDING SOLD(1)(4) OUTSTANDING(2)
----------------- ------------------ ----------- ------------ --------------
Deephaven Domestic Convertible
Trading Ltd. ....................... $ 9,750,000 1.72% 75,135 *
130 Cheshire Lane
Suite 102
Minnetonka, MN 55305
Global Bermuda Limited Partnership.... $ 5,500,000 * 42,384 *
601 Carlson Parkway
Suite 200
Minnetonka, MN 55305
KBC Financial Products................ $ 2,500,000 * 19,266 *
140 East 45th Street
2 Grand Central Tower
42nd Floor
New York, NY 10017
Lakeshore International Ltd........... $ 27,550,000 4.86% 212,306 *
601 Carlson Parkway
Suite 200
Minnetonka, MN 55305
Lydian Overseas Partners Master
Fund................................ $ 19,300,000 3.40% 148,730 *
Lydian Asset Management L.P.
101 East 52nd Street,
36th Floor
New York, NY 10022
Morgan Stanley & Co. ................. $ 25,800,000 * 198,820 *
1585 Broadway
New York, NY 10036
Newport Investments, Inc. ............ $ 750,000 * 5,780 *
130 Cheshire Lane
Suite 102
Minnetonka, MN 55305
RAM Trading Ltd. ..................... $ 10,000,000 1.76% 77,062 *
c/o SAM Investments
650 Warrenville Road
Suite 408
Lisle, IL 60532
RCG Latitude Master Fund.............. $ 3,500,000 * 26,972 *
666 Third Ave.,
26th Floor
New York, NY 10019
Salomon Smith Barney Inc. ............ $ 8,350,000 1.47% 64,347 *
390 Greenwich St.
Convertibles, 3rd Floor
New York, NY 10013
SAM Investments LDC................... $ 75,000,000 13.22% 577,965 *
650 Warrenville Road
Suite 408
Lisle, IL 60532
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PRINCIPAL AMOUNT NUMBER OF
AT MATURITY OF SHARES OF
LYONS BENEFICIALLY PERCENTAGE COMMON STOCK PERCENTAGE OF
OWNED THAT OF LYONS THAT MAY BE COMMON STOCK
NAME AND ADDRESS: MAY BE SOLD OUTSTANDING SOLD(1)(4) OUTSTANDING(2)
----------------- ------------------ ----------- ------------ --------------
Tribeca Investments, L.L.C. .......... $ 83,900,000 14.79% 646,550 1.00%
399 Park Ave.
New York, NY 10043
UBS AG London Branch.................. $ 58,765,000 10.36% 452,855 *
100 Liverpool Street
London EC2M 2RH
United Kingdom
Worldwide Transactions Ltd. .......... $ 735,000 * 5,664 *
48 Par La Ville Rd.
Suite 778
Hamilton, HMII Bermuda
Any other holder of LYON's or future
transferee, pledgee, donee or
successor of any holder(3).......... $173,535,000 30.59% 1,337,296 2.05%
------------------------
* Less than 1%.
(1) Assumes conversion of all of the holder's LYONS at a conversion rate of
7.7062 shares of common stock per $1,000 principal amount at maturity of the
LYONS. However, this conversion rate will be subject to adjustment as
described under "Description of LYONS--Conversion Rights." As a result, the
amount of common stock issuable upon conversion of the LYONs may increase or
decrease in the future.
(2) Calculated based on 63,828,321 shares of common stock outstanding as of
August 30, 2001. In calculating this amount, we treated as outstanding that
number of shares of common stock issuable upon conversion of all of a
particular holder's LYONS. However, we did not assume the conversion of any
other holder's LYONS.
(3) Information about other selling security holders will be set forth in
prospectus supplements, if required.
(4) Assumes that the holders of LYONS, or any future transferees, pledgees,
donees or successors of or from any such holder of LYONS, do not
beneficially own any common stock other than the common stock issuable upon
conversion of the LYONS at the initial conversion rate.
We prepared this table based on the information supplied to us as of
November 8, 2001, by the selling security holders named in the table. The
selling security holders listed in the above table may have sold or transferred,
in transactions exempt from the registration requirements of the Securities Act,
some or all of their LYONS since the date on which the information is presented
in the above table. Information about the selling security holders may change
over time. Any changed information supplied to us will be set forth in future
prospectus supplements.
Because the selling security holders may offer all or some of their LYONS or
the underlying common stock from time to time, we cannot estimate the amount of
the LYONS or the underlying
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common stock that will be held by the selling security holders upon the
termination of any particular offering. See "Plan of Distribution."
------------------------
INVESTING IN THE LYONS INVOLVES RISKS THAT ARE DESCRIBED IN THE "RISK
FACTORS" SECTION BEGINNING ON PAGE 9 OF THE PROSPECTUS.
------------------------
NEITHER THE SECURITIES AND EXCHANGE COMMISSION NOR ANY STATE SECURITIES
COMMISSION HAS APPROVED OR DISAPPROVED OF THESE SECURITIES OR PASSED UPON THE
ADEQUACY OR ACCURACY OF THIS PROSPECTUS. ANY REPRESENTATION TO THE CONTRARY IS A
CRIMINAL OFFENSE.
------------------------
The date of this prospectus supplement is November 9, 2001.
-TM-Trademark of Merrill Lynch & Co., Inc.
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