-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, S7PZZICNIFWYMIxdBsmq0oSNda8HssfSoCCIZvrcK9C5fW00PkkkXU0VYyLdKrow 8TRdI8ukMbw1JlJBDigYfQ== 0000898822-98-000372.txt : 19980407 0000898822-98-000372.hdr.sgml : 19980407 ACCESSION NUMBER: 0000898822-98-000372 CONFORMED SUBMISSION TYPE: SC 13D/A PUBLIC DOCUMENT COUNT: 2 FILED AS OF DATE: 19980406 SROS: NONE GROUP MEMBERS: GOLDMAN SACHS GROUP LP GROUP MEMBERS: GOLDMAN, SACHS & CO. GROUP MEMBERS: THE GOLDMAN SACHS GROUP, L.P. GROUP MEMBERS: WATER STREET CORPORATE RECOVERY FUND I, L.P. SUBJECT COMPANY: COMPANY DATA: COMPANY CONFORMED NAME: INSILCO CORP/DE/ CENTRAL INDEX KEY: 0000863204 STANDARD INDUSTRIAL CLASSIFICATION: HOUSEHOLD FURNITURE [2510] IRS NUMBER: 060635844 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: SC 13D/A SEC ACT: SEC FILE NUMBER: 005-44625 FILM NUMBER: 98588193 BUSINESS ADDRESS: STREET 1: 425 METRO PL N STE 500 STREET 2: STE 500 CITY: DUBLIN STATE: OH ZIP: 43017 BUSINESS PHONE: 6147920468 MAIL ADDRESS: STREET 1: 425 METRO PLACE NORTH STREET 2: FIFTH FLOOR SUITE 500 CITY: DUBLIN STATE: OH ZIP: 43017 FILED BY: COMPANY DATA: COMPANY CONFORMED NAME: GOLDMAN SACHS GROUP LP CENTRAL INDEX KEY: 0000904571 STANDARD INDUSTRIAL CLASSIFICATION: UNKNOWN SIC - 0000 [0000] IRS NUMBER: 133501777 STATE OF INCORPORATION: NY FISCAL YEAR END: 1130 FILING VALUES: FORM TYPE: SC 13D/A BUSINESS ADDRESS: STREET 1: 85 BROAD ST CITY: NEW YORK STATE: NY ZIP: 10004 BUSINESS PHONE: 2129021000 MAIL ADDRESS: STREET 1: 85 BROAD STREET CITY: NEW YORK STATE: NY ZIP: 10004 SC 13D/A 1 AMENDMENT NO. 10 UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 SCHEDULE 13D UNDER THE SECURITIES EXCHANGE ACT OF 1934 (Amendment No. 10) Insilco Corporation ------------------------------------------------------------------------------ (Name of Issuer) Common Stock (Par Value $.001 Per Share) ------------------------------------------------------------------------------ (Title of Class of Securities) 457659704 ------------------------------------------------------------------------------ (CUSIP Number) David J. Greenwald, Esq. Goldman, Sachs & Co. 85 Broad Street New York, NY 10004 (212) 902-1000 ------------------------------------------------------------------------------ (Name, Address and Telephone Number of Person Authorized to Receive Notices and Communications) April 1, 1998 ------------------------------------------------------------------------------ (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(b)(3) or (4), check the following box: [ ]. PAGE 1 OF 8 PAGES - ------------------- CUSIP NO. 457659704 - ------------------- - ------------------------------------------------------------------------------ 1. NAME OF REPORTING PERSON S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON Water Street Corporate Recovery Fund I, L.P. - ------------------------------------------------------------------------------ 2. CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a) [ ] (b) [ ] - ------------------------------------------------------------------------------ 3. SEC USE ONLY - ------------------------------------------------------------------------------ 4. SOURCE OF FUNDS OO; WC - ------------------------------------------------------------------------------ 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 7. SOLE VOTING POWER Shares -0- ------------------------------------------------------------------- Beneficially 8. SHARED VOTING POWER Owned By 1,863,878 ------------------------------------------------------------------- Each 9. SOLE DISPOSITIVE POWER Reporting -0- ------------------------------------------------------------------- Person With 10. SHARED DISPOSITIVE POWER 1,863,878 - -------------------------------------------------------------------------------- 11. AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON 1,863,878 - ------------------------------------------------------------------------------ 12. CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES [ ] - ------------------------------------------------------------------------------ 13. PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) 46.4% - ------------------------------------------------------------------------------ 14. TYPE OF REPORTING PERSON PN - ------------------------------------------------------------------------------ PAGE 2 OF 8 PAGES - ------------------- CUSIP NO. 457659704 - ------------------- - ------------------------------------------------------------------------------ 1. NAME OF REPORTING PERSON S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON The Goldman Sachs Group, L.P. - ------------------------------------------------------------------------------ 2. CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a) [ ] (b) [ ] - ------------------------------------------------------------------------------ 3. SEC USE ONLY - ------------------------------------------------------------------------------ 4. SOURCE OF FUNDS WC - ------------------------------------------------------------------------------ 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 7. SOLE VOTING POWER Shares 334 ------------------------------------------------------------------- Beneficially 8. SHARED VOTING POWER Owned By 1,863,878 ------------------------------------------------------------------- Each 9. SOLE DISPOSITIVE POWER Reporting 334 ------------------------------------------------------------------- Person With 10. SHARED DISPOSITIVE POWER 1,863,878 - -------------------------------------------------------------------------------- 11. AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON 1,864,212 - ------------------------------------------------------------------------------ 12. CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES [ ] - ------------------------------------------------------------------------------ 13. PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) 46.4% - ------------------------------------------------------------------------------ 14. TYPE OF REPORTING PERSON HC; PN - ------------------------------------------------------------------------------ PAGE 3 OF 8 PAGES - ------------------- CUSIP NO. 457659704 - ------------------- - ------------------------------------------------------------------------------ 1. NAME OF REPORTING PERSON S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON Goldman, Sachs & Co. - ------------------------------------------------------------------------------ 2. CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a) [ ] (b) [ ] - ------------------------------------------------------------------------------ 3. SEC USE ONLY - ------------------------------------------------------------------------------ 4. SOURCE OF FUNDS WC - ------------------------------------------------------------------------------ 5. CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS 2(D) OR 2(E) [X] - ------------------------------------------------------------------------------ 6. CITIZENSHIP OR PLACE OF ORGANIZATION Delaware - -------------------------------------------------------------------------------- Number of 7. SOLE VOTING POWER Shares -0- ------------------------------------------------------------------- Beneficially 8. SHARED VOTING POWER Owned By 1,863,878 ------------------------------------------------------------------- Each 9. SOLE DISPOSITIVE POWER Reporting -0- ------------------------------------------------------------------- Person With 10. SHARED DISPOSITIVE POWER 1,863,878 - -------------------------------------------------------------------------------- 11. AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON 1,863,878 - ------------------------------------------------------------------------------ 12. CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES [ ] - ------------------------------------------------------------------------------ 13. PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) 46.4% - ------------------------------------------------------------------------------ 14. TYPE OF REPORTING PERSON BD; PN; IA - ------------------------------------------------------------------------------ PAGE 4 OF 8 PAGES AMENDMENT NO. 10 TO SCHEDULE 13D RELATING TO THE COMMON STOCK OF INSILCO CORPORATION Water Street Corporate Recovery Fund I, L.P. ("Water Street"), Goldman, Sachs & Co. ("Goldman Sachs") and The Goldman Sachs Group, L.P. ("GS Group" and, collectively with Water Street and Goldman Sachs, the "Reporting Persons")* hereby file this Amendment No. 10 (this "Amendment No. 10") to the Statement on Schedule 13D filed with respect to the Common Stock, par value $.001 per share (the "Common Stock"), of Insilco Corporation, a Delaware corporation (the "Company"), as most recently amended by Amendment No. 9 thereto dated March 24, 1998 (as amended, the "Schedule 13D"). Unless otherwise indicated, all capitalized terms not otherwise defined herein shall have the same meanings as those set forth in the Schedule 13D. This Amendment No. 10 is being filed to report the exercise of options to purchase shares of Common Stock beneficially owned by the Reporting Persons. Item 3. Source and Amount of Funds or Other Consideration. Item 3 is hereby amended and supplemented as follows: On April 1, 1998, options to purchase 80,000 shares of Common Stock beneficially owned by the Reporting Persons (the "Stock Options") were exercised. $1,880,000 of available working capital funds were used for the exercise of the Stock Options, $680,000 to acquire 40,000 shares at an exercise price of $17.00 per share and $1,200,000 to acquire 40,000 shares at an exercise price of $30.00 per share. Item 4. Purpose of Transaction. Item 4 is hereby amended and supplemented as follows: As described in Item 3 of this Amendment No. 10, on April 1, 1998, the Stock Options, which were scheduled to expire on April 2, 1998, were exercised. Item 5. Interest in Securities of the Issuer. Item 5(a) is hereby amended and restated as follows: (a) As of the date hereof, Water Street beneficially owns an aggregate of 1,863,878 shares of Common Stock. Based upon the foregoing, Water Street beneficially owns approximately 46.4% of the Common Stock reported by the Company to be outstanding as of March 24, 1998 (as represented by the Company in the Merger Agreement). As of the date hereof, GS Group owns an aggregate of 334 shares of Common Stock and, in addition, each of GS Group and Goldman Sachs may be deemed to be the beneficial owner of the 1,863,878 shares of Common Stock beneficially owned by Water Street, representing in the aggregate approximately 46.4% of the outstanding Common Stock. Each of __________________________ * Neither the present filing nor anything contained herein shall be construed as an admission that Water Street, Goldman Sachs or GS Group constitute a "person" for any purpose other than Section 13(d) of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), or that Water Street, Goldman Sachs and GS Group constitute a "group" for any purpose. PAGE 5 OF 8 PAGES GS Group and Goldman Sachs disclaims beneficial ownership of the shares of Common Stock held by Water Street to the extent the partnership interests in Water Street are held by persons other than GS Group, Goldman Sachs or their affiliates. To the knowledge of the Reporting Persons, each of the persons listed on Schedule I owns 167 shares of Common Stock. Each of the Reporting Persons disclaims beneficial ownership with respect to such shares. Item 5(c) is hereby amended and supplemented as follows: (c) Except for the exercise of the Stock Options described herein, there have been no transactions in the Common Stock by the persons named in Item 5(a) hereto since the filing of Amendment No. 9 to this Schedule 13D. Item 7. Material to be Filed as Exhibits. Item 7 is hereby amended and supplemented by adding thereto the following: (13) Engagement Letter, dated as of March 23, 1998, between Insilco Corporation and Goldman Sachs. PAGE 6 OF 8 PAGES SIGNATURE After reasonable inquiry and to the best of my knowledge and belief, I certify that the information set forth in this statement is true, complete and correct. WATER STREET CORPORATE RECOVERY FUND I, L.P. By: Goldman, Sachs & Co., its General Partner By: /s/ Richard A. Friedman ---------------------------- Name: Richard A. Friedman Title: Managing Director GOLDMAN, SACHS & CO. By: /s/ Richard A. Friedman ----------------------------- Name: Richard A. Friedman Title: Managing Director THE GOLDMAN SACHS GROUP, L.P. By: The Goldman Sachs Corporation, its general partner By: /s/ Richard A. Friedman ---------------------------- Name: Richard A. Friedman Title: Executive Vice President Dated: April 6, 1998 PAGE 7 OF 8 PAGES INDEX TO EXHIBITS Exhibit No. Exhibit Page (13) Engagement Letter, dated as of March 23, 1998, between Insilco Corporation and Goldman Sachs. PAGE 8 OF 8 PAGES EX-99 2 EXHIBIT 13 -- ENGAGEMENT LETTER EXHIBIT 13 [GOLDMAN, SACHS & CO. LETTERHEAD] PERSONAL AND CONFIDENTIAL March 23, 1998 Robert L. Smialek Chairman, President and CEO Insilco Corporation 425 Metro Place North, 5th Floor Dublin, Ohio 43017 Dear Bob: We refer to the engagement letter dated November 27, 1996 between Insilco Corporation (the "Company") and Goldman, Sachs & Co. ("Goldman Sachs") regarding the possible sale of all or a portion of the Company (the "Engagement Letter"), as amended by two letters dated July 10, 1997. This letter is intended to amend and confirm certain mutual understandings with respect to our acting as your financial advisor in connection with the sale of the Company to Silkworm Acquisition Corporation, an affiliate of DLJ Merchant Banking Partners II, Inc. (the "Transaction"), as contemplated by the Engagement Letter. We will charge a transaction fee of $2,000,000 for advice in connection with the Transaction, which shall be payable in cash upon consummation of the Transaction. We hereby confirm our mutual understanding that the third through the eighth paragraphs of the Engagement Letter shall be inapplicable to the Transaction. The Engagement Letter shall otherwise remain in effect with respect to the transactions contemplated thereby, provided that the Engagement Letter shall be terminated on payment of the transaction fee described above, and the Company shall have no further fee obligations to Goldman Sachs pursuant to such Engagement Letter. In connection with engagements such as this it is our firm policy to receive indemnification. The Company agrees that the provisions with respect to our indemnity and other matters set forth in Annex A of the Engagement Letter shall apply to our engagement pursuant to this letter and any matter contemplated hereby, subject to the qualifications set forth in the twelfth paragraph of the Engagement Letter. Insilco Corporation March 23, 1998 Page Two Please confirm that the foregoing is in accordance with your understanding by signing and returning to us the enclosed copy of this letter, which shall become a binding agreement upon our receipt. Very truly yours, Confirmed: /s/ Goldman, Sachs & Co. - --------------------------- (GOLDMAN, SACHS & CO.) INSILCO CORPORATION By: /s/ Robert L. Smialek ---------------------------- Name: Robert L. Smialek Title: President & Chief Executive Officer Date: 26 March, 1998 ---------------- -----END PRIVACY-ENHANCED MESSAGE-----