UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
SCHEDULE 13G
(Rule 13d-102)
INFORMATION TO BE INCLUDED IN STATEMENTS FILED PURSUANT TO
RULES 13d-1(b) AND (c) AND AMENDMENTS THERETO FILED
PURSUANT TO 13d-2(b)
(Amendment No. 1)*
Online System Services, Inc.
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(Name of Issuer)
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Common Stock, without par value
(Title of Class of Securities)
682731-10-4
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(CUSIP Number)
January 11, 1999
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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
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).
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SCHEDULE 13G
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CUSIP No. 682731-10-4
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1 NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
West End Capital LLC
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2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP*
(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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5 SOLE VOTING POWER
485,183
Number of -------------------------------------------------------
Shares 6 SHARED VOTING POWER
Beneficially 0
Owned By -------------------------------------------------------
Each 7 SOLE DISPOSITIVE POWER
Reporting 485,183
Person -------------------------------------------------------
With 8 SHARED DISPOSITIVE POWER
0
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9 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
485,183
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10 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (9) EXCLUDES CERTAIN SHARES*
[ ]
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11 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (9)
9.4%
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12 TYPE OF REPORTING PERSON*
OO
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*SEE INSTRUCTION BEFORE FILLING OUT!
Page 2 of 13
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SCHEDULE 13G
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CUSIP No. 682731-10-4
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1 NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
Arrow Investors LLC
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2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP*
(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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5 SOLE VOTING POWER
50,000
Number of -------------------------------------------------------
Shares 6 SHARED VOTING POWER
Beneficially 0
Owned By -------------------------------------------------------
Each 7 SOLE DISPOSITIVE POWER
Reporting 50,000
Person -------------------------------------------------------
With 8 SHARED DISPOSITIVE POWER
0
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9 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
50,000
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10 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (9) EXCLUDES CERTAIN SHARES*
[ ]
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11 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (9)
1.0%
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12 TYPE OF REPORTING PERSON*
OO
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*SEE INSTRUCTION BEFORE FILLING OUT!
Page 3 of 13
<PAGE>
SCHEDULE 13G
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CUSIP No. 682731-10-4
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1 NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
Archer Investors LLC
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2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP*
(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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5 SOLE VOTING POWER
385,183
Number of -------------------------------------------------------
Shares 6 SHARED VOTING POWER
Beneficially 0
Owned By -------------------------------------------------------
Each 7 SOLE DISPOSITIVE POWER
Reporting 385,183
Person -------------------------------------------------------
With 8 SHARED DISPOSITIVE POWER
0
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9 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
385,183
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10 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (9) EXCLUDES CERTAIN SHARES*
[ ]
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11 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (9)
7.6%
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12 TYPE OF REPORTING PERSON*
OO
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*SEE INSTRUCTION BEFORE FILLING OUT!
Page 4 of 13
<PAGE>
SCHEDULE 13G
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CUSIP No. 682731-10-4
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1 NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
WEC Asset Management LLC
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2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP*
(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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5 SOLE VOTING POWER
242,131
Number of -------------------------------------------------------
Shares 6 SHARED VOTING POWER
Beneficially 0
Owned By -------------------------------------------------------
Each 7 SOLE DISPOSITIVE POWER
Reporting 242,131
Person -------------------------------------------------------
With 8 SHARED DISPOSITIVE POWER
0
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9 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
242,131
- --------------------------------------------------------------------------------
10 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (9) EXCLUDES CERTAIN SHARES*
[ ]
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11 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (9)
4.9%
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12 TYPE OF REPORTING PERSON*
OO
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*SEE INSTRUCTION BEFORE FILLING OUT!
Page 5 of 13
<PAGE>
SCHEDULE 13G
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CUSIP No. 682731-10-4
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1 NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
Arrow Investors II LLC
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2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP*
(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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5 SOLE VOTING POWER
242,131
Number of -------------------------------------------------------
Shares 6 SHARED VOTING POWER
Beneficially 0
Owned By -------------------------------------------------------
Each 7 SOLE DISPOSITIVE POWER
Reporting 242,131
Person -------------------------------------------------------
With 8 SHARED DISPOSITIVE POWER
0
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9 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
242,131
- --------------------------------------------------------------------------------
10 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (9) EXCLUDES CERTAIN SHARES*
[ ]
- --------------------------------------------------------------------------------
11 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (9)
4.9%
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12 TYPE OF REPORTING PERSON*
OO
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*SEE INSTRUCTION BEFORE FILLING OUT!
Page 6 of 13
<PAGE>
Schedule 13G
Item 1.
(a) Name of Issuer:
Online System Services, Inc.
(b) Address of Issuer's Principal Executive Offices:
Online System Services, Inc.
1800 Glenarm Place, 8th Floor
Denver, Colorado 80202
Item 2.
(a) Names of Persons Filing:
West End Capital LLC ("West End")
Arrow Investors LLC ("Arrow")
Archer Investors LLC ("Archer")
WEC Asset Management LLC ("Asset Management")
Arrow Investors II LLC ("Arrow II")
(b) Address of Principal Business Office or, if none, Residence:
West End Capital LLC Arrow Investors LLC
One World Trade Center c/o West End Capital LLC
New York, New York 10048 One World Trade Center
New York, New York 10048
Archer Investors LLC WEC Asset Management LLC
c/o West End Capital LLC One World Trade Center
One World Trade Center New York, New York 10048
New York, New York 10048
Arrow Investors II LLC
c/o WEC Asset Management LLC
One World Trade Center
New York, New York 10048
(c) Citizenship:
West End, Asset Management, Arrow, Archer and Arrow II are
each organized under the laws of Delaware
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(d) Title of Class of Securities:
Common Stock, without par value.
(e) CUSIP Number:
682731-10-4
Item 3. If this statement is filed pursuant to Rules 13d-1(b), or 13d-2(b),
check whether the person filing is a:
(a) [ ] Broker or dealer registered under Section 15 of the
Exchange Act.
(b) [ ] Bank as defined in Section 3(a)(6) of the Exchange Act.
(c) [ ] Insurance company as defined in Section 3(a)(19) of the
Exchange Act.
(d) [ ] Investment company registered under Section 8 of the
Investment Company Act.
(e) [ ] An investment adviser in accordance with Rule
13d-1(b)(1)(ii)(E);
(f) [ ] An employee benefit plan or endowment fund in accordance
with Rule 13d-1(b)(1)(ii)(F);
(g) [ ] A parent holding company or control person in accordance
with Rule 13d-1(b)(1)(ii)(G);
(h) [ ] A savings association as defined in Section 3(b) of the
Federal Deposit Insurance Act;
(i) [ ] A church plan that is excluded from the definition of an
investment company under Section 3(c)(14) of the Investment
Company Act;
(j) [ ] Group, in accordance with Rule 13d-1(b)(1)(ii)(J).
If this statement is filed pursuant to Rule 13d-1(c), check this box [ ].
Item 4. Ownership.
A. Arrow Investors LLC
(a) Amount beneficially owned: As of January 11, 1999, 50,000 shares of
Common Stock issuable upon exercise of warrants held by Arrow.
(b) Percent of class: 1.0%
(c) (i) Sole power to vote or direct the vote: 50,000
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(ii) Shared power to vote or direct the vote: -0-
(iii) Sole power to dispose or direct the disposition: 50,000
(iv) Shared power to dispose or direct the disposition: -0-
B. Archer Investors LLC
(a) Amount beneficially owned: As of January 11, 1999, 385,183 shares of
Common Stock, consisting of 245,183 shares of Common Stock issuable
upon conversion of the Company's Series A Preferred Stock held by
Archer and 140,000 shares of Common Stock issuable upon exercise of
warrants held by Archer. Pursuant to the terms of the Company's Series
A Preferred Stock, at no time shall any holder (including its
affiliates) convert any shares of Series A Preferred Stock as shall
result in such holder's (together with its affiliate's) ownership,
after such conversion, exceeding 9.9% of the Company's outstanding
common stock.
(b) Percent of class: 7.6%
(c) (i) Sole power to vote or direct the vote: 385,183
(ii) Shared power to vote or direct the vote: -0-
(iii) Sole power to dispose or direct the disposition: 385,183
(iv) Shared power to dispose or direct the disposition: -0-
C. West End Capital LLC
(a) Amount beneficially owned: As of January 11, 1999, 485,183 shares of
Common Stock, consisting of 50,000 shares of Common Stock issuable
upon exercise of warrants held by West End, 50,000 shares of Common
Stock issuable upon exercise of warrants held by Arrow, 245,183 shares
of Common Stock issuable upon conversion of the Company's Series A
Preferred Stock held by Archer and 140,000 shares of Common Stock
issuable upon exercise of warrants held by Archer. West End, as the
manager of each of Arrow Investors LLC and Archer Investors LLC, may
be deemed to beneficially own the shares which each of Arrow and
Archer may obtain upon conversion of the Series A Preferred Stock (in
the case of Archer) and exercise of the warrants. Notwithstanding the
foregoing, pursuant to Rule 13d-4 under the Securities Exchange Act of
1934, as amended, West End disclaims beneficial ownership of the
shares of Common Stock issuable upon conversion of the Series A
Preferred Stock and exercise of the warrants held by Arrow and Archer.
Pursuant to the terms of the Company's Series A Preferred Stock, at no
time shall any holder (including its affiliates) convert any shares of
Series A
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Preferred Stock as shall result in such holder's (together with its
affiliate's) ownership, after such conversion, exceeding 9.9% of the
Company's outstanding common stock.
(b) Percent of class: 9.4%
(c) (i) Sole power to vote or direct the vote: 485,183
(ii) Shared power to vote or direct the vote: -0-
(iii) Sole power to dispose or direct the disposition: 485,183
(iv) Shared power to dispose or direct the disposition: -0-
D. Arrow Investors II LLC
(a) Amount beneficially owned: As of January 11, 1999, 242,131 shares
of Common Stock, consisting of 145,278 shares of Common Stock
issuable upon conversion of the Company's Series C Preferred
Stock held by Arrow II and 96,853 shares of Common Stock issuable
upon exercise of warrants held by Arrow II. Pursuant to the terms
of the Company's Series C Preferred Stock, at no time shall any
holder (including its affiliates) convert any shares of Series C
Preferred Stock as shall result in such holder's (together with
its affiliate's) ownership, after such conversion, exceeding 9.9%
of the Company's outstanding common stock.
(b) Percent of class: 4.9%
(c) (i) Sole power to vote or direct the vote: 242,131
(ii) Shared power to vote or direct the vote: -0-
(iii) Sole power to dispose or direct the disposition: 242,131
(iv) Shared power to dispose or direct the disposition: -0-
E. WEC Asset Management LLC
(a) Amount beneficially owned: As of January 11, 1999, 242,131 shares
of Common Stock, consisting of 145,278 shares of Common Stock
issuable upon conversion of the Company's Series C Preferred
Stock held by Arrow II and 96,853 shares of Common Stock issuable
upon exercise of warrants held by Arrow II. Asset Management, as
the manager of Arrow II, may be deemed to beneficially own the
shares which each Arrow II may obtain upon conversion of the
Series C Preferred Stock and exercise of the warrants.
Notwithstanding the foregoing, pursuant to Rule 13d-4 under the
Securities Exchange Act of 1934, as amended, Asset Management
disclaims beneficial ownership of the shares of Common Stock
issuable upon conversion of the Series C Preferred Stock and
exercise of the warrants held by Arrow II. Pursuant to the terms
of
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<PAGE>
the Company's Series C Preferred Stock, at no time shall any
holder (including its affiliates) convert any shares of Series C
Preferred Stock as shall result in such holder's (together with
its affiliate's) ownership, after such conversion, exceeding 9.9%
of the Company's outstanding common stock.
(b) Percent of class: 4.9%
(c) (i) Sole power to vote or direct the vote: 242,131
(ii) Shared power to vote or direct the vote: -0-
(iii) Sole power to dispose or direct the disposition: 242,131
(iv) Shared power to dispose or direct the disposition: -0-
Item 5. Ownership of Five Percent or Less of a Class.
Not Applicable.
Item 6. Ownership of More than Five Percent on Behalf of Another Person.
West End Capital LLC, as the manager of each of Arrow and Archer, has
the power to dispose of and the power to vote the shares of Common
Stock beneficially owned by it and each of Arrow and Archer. WEC Asset
Management LLC, as the manager of Arrow II, has the power to dispose
of and the power to vote the shares of Common Stock beneficially owned
by Arrow II.
Item 7. Identification and Classification of the Subsidiary Which Acquired the
Security Being Reported on By the Parent Holding Company.
Not Applicable.
Item 8. Identification and Classification of Members of the Group.
Not Applicable.
Item 9. Notice of Dissolution of the Group.
Not Applicable.
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 such securities and were not acquired and
are not held in connection with or as a participant in any transaction
having that purpose or effect.
11
<PAGE>
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.
Date: January 21, 1999
WEST END CAPITAL LLC
By: /s/ Daniel J. Saks
--------------------------------------
Name: Daniel J. Saks
Title: Managing Director
ARROW INVESTORS LLC
By: West End Capital LLC, Manager
By: /s/ Daniel J. Saks
--------------------------------------
Name: Daniel J. Saks
Title: Managing Director
ARCHER INVESTORS LLC
By: West End Capital LLC, Manager
By: /s/ Daniel J. Saks
--------------------------------------
Name: Daniel J. Saks
Title: Managing Director
WEC ASSET MANAGEMENT LLC
By: /s/ Ethan E. Benovitz
--------------------------------------
Name: Ethan E. Benovitz
Title: Managing Director
ARROW INVESTORS II LLC
By: WEC Asset Management LLC, Manager
By: /s/ Ethan E. Benovitz
--------------------------------------
Name: Ethan E. Benovitz
Title: Managing Director
12
<PAGE>
JOINT FILING AGREEMENT
Each of the undersigned hereby agrees that the schedule 13G filed herewith
is filed jointly, pursuant to Rule 13d-1(k)(1) of the Securities Exchange Act of
1934, as amended, on behalf of each of them.
Date: January 21, 1999
WEST END CAPITAL LLC
By: /s/ Daniel J. Saks
--------------------------------------
Name: Daniel J. Saks
Title: Managing Director
ARROW INVESTORS LLC
By: West End Capital LLC, Manager
By: /s/ Daniel J. Saks
--------------------------------------
Name: /Daniel J. Saks/
Title: Managing Director
ARCHER INVESTORS LLC
By: West End Capital LLC, Manager
By: /s/ Daniel J. Saks
--------------------------------------
Name: Daniel J. Saks
Title: Managing Director
WEC ASSET MANAGEMENT LLC
By: /s/ Ethan E. Benovitz
--------------------------------------
Name: Ethan E. Benovitz
Title: Managing Director
ARROW INVESTORS II LLC
By: WEC Asset Management LLC, Manager
By: /s/ Ethan E. Benovitz
--------------------------------------
Name: Ethan E. Benovitz
Title: Managing Director
13
