SC 13D/A 1 eh1901355_13da5-hostess.htm AMENDMENT NO. 5 Unassociated Document

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
 
SCHEDULE 13D

Under the Securities Exchange Act of 1934
(Amendment No. 5)*

Hostess Brands, Inc.
(Name of Issuer)
 
Class A Common Stock, $0.0001 par value
(Title of Class of Securities)
 
382866101
(CUSIP Number)
 
C. Dean Metropoulos
Chairman and Chief Executive Officer of Metropoulos & Co.
200 Greenwich Avenue
Greenwich, Connecticut 06830
Fax: (203) 629-6660
 
With a copy to:
Paul, Weiss, Rifkind, Wharton & Garrison LLP
1285 Avenue of the Americas
New York, NY  10019-6064
Attention: John C. Kennedy
Fax: (212) 757-3990
Email: jkennedy@paulweiss.com
(Name, Address and Telephone Number of Person
Authorized to Receive Notices and Communications)
 
December 16, 2019
(Date of Event which Requires Filing of this Statement)

If the filing person has previously filed a statement on Schedule 13G to report the acquisition which is the subject of this Schedule 13D, and is filing this schedule because of Rule 13d-1(e), 13d-1(f) or 13d-1(g), check the following box. ☐
Note:  Schedules filed in paper format shall include a signed original and five copies of the schedule, including all exhibits.  See Rule 13d-7 for other parties to whom copies are to be sent.
*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 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 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).
 
CUSIP No.  382866101
 SCHEDULE 13D
Page 2 of 6

 
1
NAME OF REPORTING PERSON OR
I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
 
C. Dean Metropoulos
  
2
CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP
 
 
(a)  ☒
(b)  ☐
3
SEC USE ONLY
 
 
  
4
SOURCE OF FUNDS
 
OO
  
5
CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS 2(d) or 2(e)
 
 
 ☐
6
CITIZENSHIP OR PLACE OF ORGANIZATION
 
United States
  
NUMBER OF
SHARES
BENEFICIALLY
OWNED BY EACH
REPORTING PERSON
WITH
7
SOLE VOTING POWER
 
1,003,539(1)
8
SHARED VOTING POWER
 
8,955,184(2)
9
SOLE DISPOSITIVE POWER
 
1,003,539(1)
10
SHARED DISPOSITIVE POWER
 
8,955,184(2)
11
AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
 
9,958,723
  
12
CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES
 
 
 o
13
PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
 
7.6%(3)
  
14
TYPE OF REPORTING PERSON
 
IN
  
 

1
Represents the 1,003,539 shares of Class A Common Stock (as defined in the Statement) of the Issuer owned directly by Mr. Metropoulos in his individual capacity, which includes (i) 1,000,000 shares of Class A Common Stock that would result from the exercise of 2,000,000 warrants of the Issuer entitling the holder thereof to purchase one-half of one share of Class A Common Stock at an exercise price of $5.75 per half share (the “Warrants”) held by Mr. Metropoulos and (ii) 3,539 shares of Class A Common Stock represented by 3,539 restricted stock units of the Issuer entitling the holder thereof to the right to receive shares of Class A Common Stock on a one-for-one basis.
2
Represents 8,955,184 Units (as defined herein) that are exchangeable for shares of Class A Common Stock of the Issuer, on a one-for-one basis, in accordance with the terms and subject to the restrictions set forth in the Exchange Agreement (as defined in the Statement), that may be deemed to be beneficially owned by Mr. Metropoulos in his capacity as the managing member of Hostess CDM Co-Invest, LLC and each of its series.  Mr. Metropoulos also has an indirect pecuniary interest in 1,833,285 of such Units.
3
All ownership percentages set forth in this Schedule 13D are calculated using a denominator of 131,402,265, the sum of (i) 120,947,081 shares of Class A Common Stock outstanding as of November 5, 2019, as reported in the Quarterly Report on Form 10-Q filed by the Issuer on November 6, 2019, (ii) 1,000,000 shares of Class A Common Stock that the Reporting Persons (as defined in the Statement) would receive in the event all of the Warrants beneficially owned by the Reporting Persons were exercised and no other outstanding Warrants are exercised and (iii) 9,455,184 shares of Class A Common Stock that would result in the event all of issued and outstanding shares of the Issuer’s Class B common stock as of November 5, 2019, as reported in the Quarterly Report on Form 10-Q filed by the Issuer on November 6, 2019, par value $0.0001 per share (the “Class B Common Stock”) and an equivalent number of Class B Units in Hostess Holdings L.P. (the “Class B Units” and, together with the Class B Common Stock, the “Units”) beneficially owned by the Reporting Persons were exchanged for shares of Class A Common Stock at the current exchange rate of one share of Class A Common Stock per one Unit.
 
CUSIP No.  382866101
 SCHEDULE 13D
Page 3 of 6

 
1
NAME OF REPORTING PERSON OR
I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
 
Hostess CDM Co-Invest, LLC
  
2
CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP
 
 
(a)  ☒
(b)  ☐
3
SEC USE ONLY
 
 
  
4
SOURCE OF FUNDS
 
OO
  
5
CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS 2(d) or 2(e)
 
 
 ☐
6
CITIZENSHIP OR PLACE OF ORGANIZATION
 
Delaware
  
NUMBER OF
SHARES
BENEFICIALLY
OWNED BY EACH
REPORTING PERSON
WITH
7
SOLE VOTING POWER
 
0
8
SHARED VOTING POWER
 
8,955,184(4)
9
SOLE DISPOSITIVE POWER
 
0
10
SHARED DISPOSITIVE POWER
 
8,955,184(4)
11
AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
 
8,955,184
  
12
CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES
 
 
 o
13
PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
 
6.8%
  
14
TYPE OF REPORTING PERSON
 
OO
  
 

4
Represents 8,955,184 Units that are exchangeable for shares of Class A Common Stock of the Issuer, on a one-for-one basis, in accordance with the terms and subject to the restrictions set forth in the Exchange Agreement, which are directly owned by Hostess CDM Co-Invest, LLC and may be deemed to be beneficially owned by Mr. Metropoulos in his capacity as the managing member of Hostess CDM Co-Invest, LLC. Mr. Metropoulos also has an indirect pecuniary interest in 1,833,285 of such Units.
CUSIP No.  382866101
 SCHEDULE 13D
Page 4 of 6
 

Item 1.          Security and Issuer.

This Amendment No. 5 to Schedule 13D (this “Amendment”) amends and supplements the Schedule 13D originally filed with the United States Securities and Exchange Commission (the “SEC”) on November 14, 2016, as amended by Amendment No. 1, dated April 24, 2017, Amendment No. 2, dated May 20, 2019, Amendment No. 3, dated August 15, 2019, and Amendment No. 4, dated September 13, 2019 (the “Statement”), relating to the Class A common stock, par value $0.0001 per share (the “Class A Common Stock”), of Hostess Brands, Inc. (the “Issuer”). Capitalized terms used herein without definition shall have the meaning set forth in the Statement.

As of December 13, 2019, as reflected in this Amendment, the Reporting Persons beneficially owned 9,958,723 shares of Class A Common Stock (the “Subject Shares”), representing approximately 7.6% of the issued and outstanding Class A Common Stock.

Item 2.          Identity and Background.

No material change.

Item 3.          Source or Amount of Funds or Other Consideration.

No material change.

Item 4.          Purpose of Transaction.

Item 4 of the Schedule 13D is hereby supplemented as follows:

On December 16, 2019, the former 10b5-1 Plan was terminated and Hostess CDM Co-Invest entered into a new pre-arranged stock trading plan with J.P. Morgan Securities LLC (“JPMS”) pursuant to Rule 10b5-1 under the Securities Exchange Act of 1934, as amended (the “New 10b5-1 Plan”). The description of the New 10b5-1 Plan set forth in Item 6 below is incorporated herein by reference in its entirety.

The transactions contemplated by the New 10b5-1 Plan will result in the disposition of securities of the Issuer.
 
CUSIP No.  382866101
 SCHEDULE 13D
Page 5 of 6
 
Item 5.          Interest in Securities of the Issuer.

Item 5 is hereby amended and restated as follows:

The information contained on the cover pages of this Schedule 13D and the information set forth or incorporated in Items 3, 4 and 6 is hereby incorporated by reference in its entirety into this Item 5.

(a) and (b)

All ownership percentages set forth in this Schedule 13D are calculated using a denominator of 131,402,265, the sum of (i) 120,947,081 shares of Class A Common Stock outstanding as of November 5, 2019, as reported in the Quarterly Report on Form 10-Q filed by the Issuer on November 6, 2019, (ii) 1,000,000 shares of Class A Common Stock that the Reporting Persons (as defined in the Statement) would receive in the event all of the Warrants beneficially owned by the Reporting Persons were exercised and no other outstanding Warrants are exercised and (iii) 9,455,184 shares of Class A Common Stock that would result in the event all of issued and outstanding shares of the Issuer’s Class B Common Stock as of November 5, 2019, as reported in the Quarterly Report on Form 10-Q filed by the Issuer on November 6, 2019, par value $0.0001 per share and an equivalent number of Class B Units in Hostess Holdings L.P. beneficially owned by the Reporting Persons were exchanged for shares of Class A Common Stock at the current exchange rate of one share of Class A Common Stock per one Unit.

Hostess CDM Co-Invest

Hostess CDM Co-Invest directly holds 8,955,184 Units that it may exchange for, at the option of the Issuer, the number of shares of Class A Common Stock specified in that certain Exchange Agreement, dated November 4, 2016, among the Issuer, Hostess Holdings L.P., Mr. Metropoulos, Hostess CDM Co-Invest and CDM Class C (the “Exchange Agreement”) or the cash equivalent of such shares of Class A Common Stock, on the terms and conditions set forth therein. Pursuant to Rule 13d-3 under the Act, Hostess CDM Co-Invest is the beneficial owner of 8,955,184 shares of Class A Common Stock underlying such Units, representing approximately 6.8% of the issued and outstanding shares of Class A Common Stock, and shares the power to vote and dispose of such Class A Common Shares with its managing member, Mr. Metropoulos.

Mr. Metropoulos

Mr. Metropoulos does not directly hold any shares of Class A Common Stock.

Mr. Metropoulos directly holds 2,000,000 Warrants entitling him to purchase one-half of one share of Class A Common Stock per warrant at $5.75 per half share. Pursuant to Rule 13d-3 under the Act, Mr. Metropoulos is the beneficial owner of 1,000,000 shares of Class A Common Stock underlying such Warrants and has the sole power to vote and dispose of such Class A Common Shares.

Mr. Metropoulos also directly holds 3,539 restricted stock units of the Issuer entitling the holder thereof to the right to receive shares of Class A Common Stock on a one-for-one basis. Collectively, Mr. Metropoulos is the direct beneficial owner of 1,003,539 shares of Class A Common Stock, representing approximately 0.7% of the issued and outstanding shares of Class A Common Stock.

Mr. Metropoulos, as the managing member of Hostess CDM Co-Invest has the ability to direct the management and the business of Hostess CDM Co-Invest, including the power to vote and dispose of securities held by Hostess CDM Co-Invest. Mr. Metropoulos may, therefore, be deemed to beneficially own 8,955,184 shares of Class A Common Stock, representing approximately 6.8% of the issued and outstanding shares of Class A Common Stock, directly held by Hostess CDM Co-Invest.

In the aggregate, Mr. Metropoulos is the beneficial owner of 9,958,723 shares of Class A Common Stock, representing approximately 7.6% of the issued and outstanding shares of Class A Common Stock.

(c)

On December 13, 2019, Hostess CDM Co-Invest sold 500,000 shares of Class A Common Stock in open market transactions at a weighted average price per share of $14.0552. The shares were sold in multiple transactions at prices ranging from $13.91 to $14.225, inclusive. Hostess CDM Co-Invest undertakes to provide to the Issuer, any security holder of the Issuer, or the staff of the Securities and Exchange Commission, upon request, full information regarding the number of shares sold at each separate price within such range.

Following the sale of the Class A Common Stock by Hostess CDM Co-Invest, Hostess CDM Co-Invest is the record holder of an aggregate of 8,955,184 shares of Class A Common Stock, which represents approximately 6.8% of the Issuer’s outstanding Class A Common Stock.

Other than these sales and the transactions described herein, there have been no other transactions in the securities of the Issuer effected by any Reporting Person within the last 60 days.

(d)          To the best knowledge of the Reporting Persons, no person other than the Reporting Persons has the right to receive or the power to direct the receipt of dividends from, or the proceeds from the sale of, the securities beneficially owned by the Reporting Persons identified in this Item 5.

Item 6.  Contracts, Arrangements, Understandings or Relationships with Respect to Securities of the Issuer.

Item 6 is hereby supplemented as follows:

New 10b5-1 Plan

Pursuant to the New 10b5-1 Plan, JPMS may sell up to 3,500,000 shares of Class A Common Stock beneficially owned by Hostess CDM Co-Invest. All sales under the New 10b5-1 Plan are to be made in the discretion of JPMS and in accordance with the terms, conditions and restrictions of the New 10b5-1 Plan. Pursuant to the 10b5-1 Plan, sales will commence on December 20, 2019 and will continue until December 11, 2020 or until all of the shares of Class A Common Stock to be sold under the New 10b5-1 Plan are sold or the New 10b5-1 Plan is otherwise terminated.

Item 7.  Material to Be Filed as Exhibits.

Not applicable.


 
CUSIP No.  382866101
 SCHEDULE 13D
Page 6 of 6
 
 
SIGNATURE
After reasonable inquiry and to the best of my knowledge and belief, the undersigned certifies that the information set forth in this statement is true, complete and correct.

Dated:  December 18, 2019
 
 
C. DEAN METROPOULOS
  
       
 
/s/ C. Dean Metropoulos
  
     
     
  HOSTESS CDM CO-INVEST, LLC  
 
 
  
        
  By: /s/ Michael Cramer  
  Name:
Michael Cramer
  
  Title:
President and Secretary
  
 
Exhibit A
 
JOINT FILING AGREEMENT
 
Pursuant to Rule 13(d)-1(k)(1) promulgated under the Securities Exchange Act of 1934, as amended, each of the undersigned acknowledges and agrees that the foregoing statement on Schedule 13D is filed on behalf of the undersigned and that all subsequent amendments to this statement on Schedule 13D shall be filed on behalf of the undersigned without the necessity of filing additional joint acquisition statements. Each of the undersigned acknowledges that it shall be responsible for the timely filing of such amendments, and for the completeness and accuracy of the information concerning it contained therein, but shall not be responsible for the completeness and accuracy of the information concerning the others, except to the extent that he or it knows or has reason to believe that such information is inaccurate.
 
Dated as of December 18, 2019
[Signature Page Follows]
 
IN WITNESS WHEREOF, the undersigned have executed this Joint Filing Agreement as of the date first set forth above.
 
 
C. DEAN METROPOULOS
  
       
 
/s/ C. Dean Metropoulos
  
     
     
  HOSTESS CDM CO-INVEST, LLC  
 
 
  
        
  By: /s/ Michael Cramer   
  Name:
Michael Cramer
  
  Title:
President and Secretary