RHYTHMS NET CONNECTIONS INC
424B3, 2000-10-30
TELEPHONE COMMUNICATIONS (NO RADIOTELEPHONE)
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<PAGE>

                                                Filed pursuant to Rule 424(b)(3)
                                            Registration Statement No. 333-38334


                  PROSPECTUS SUPPLEMENT DATED OCTOBER 30, 2000
                      (TO PROSPECTUS DATED AUGUST 25, 2000)


        3,000,000 SHARES OF 6 3/4% CUMULATIVE CONVERTIBLE PREFERRED STOcK
           AND 7,050,000 SHARES OF COMMON STOCK ISSUABLE ON CONVERSION
                OF 6 3/4% CUMULATIVE CONVERTIBLE PREFERRED STOcK


                          RHYTHMS NETCONNECTIONS, INC.

                    -----------------------------------------


         You should read this Prospectus Supplement and the accompanying
prospectus carefully before you invest. Both documents contain information you
should consider when making your investment decision.

         SEE "RISK FACTORS" BEGINNING ON PAGE 1 OF THE PROSPECTUS TO READ ABOUT
FACTORS YOU SHOULD CONSIDER BEFORE BUYING SHARES OF OUR SERIES F PREFERRED STOCK
OR COMMON STOCK.

                              SELLING STOCKHOLDERS

                  The following tables update information contained in the
prospectus, dated August 25, 2000, regarding the current holders of the Series F
preferred stock, and the underlying common stock issuable upon conversion of the
Series F preferred stock.

                                 PREFERRED STOCK

<TABLE>
<CAPTION>
                                                              Shares owned            Shares           Shares owned
                                                               before the          offered for          after this
                                                                offering               sale              offering
                                                            -----------------     ---------------    -----------------
<S>                                                         <C>                   <C>                <C>
Augusta Partners, L.P.                                           75,000                 75,000               -0-
American Variable Insurance Series, Growth-Income
     Fund (1)                                                   188,000                188,000               -0-
Bear, Stearns & Co. Inc.                                         20,000                 20,000               -0-
BNP Arbitrage SNC                                                45,531                 45,531               -0-
BNP Copper Neff Convertible Strategies Fund, L.P.                 2,969                  2,969               -0-
Chase Securities, Inc. (2)                                       26,000                 26,000               -0-
CIBC World Markets International Arbitrage Corp.                 55,000                 55,000               -0-
Clinton Riverside Convertible Portfolio Limited                  40,000                 40,000               -0-
Dallas Police & Fire Pension System                              19,500                 19,500               -0-
</TABLE>

                                       S-1

<PAGE>

<TABLE>
<CAPTION>
                                                              Shares owned            Shares           Shares owned
                                                               before the          offered for          after this
                                                                offering               sale              offering
                                                            -----------------     ---------------    -----------------
<S>                                                         <C>                   <C>                <C>
D.E. Shaw Investments, L.P.                                      30,000                 30,000               -0-
D.E. Shaw Valence, L.P.                                          45,000                 45,000               -0-
Deutsche Bank Securities Inc.                                   620,000                620,000               -0-
Donaldson, Lufkin & Jenrette Securities Corp.                    47,000                 47,000               -0-
Fifth Third Bank                                                 10,000                 10,000               -0-
Goldman Sachs & Co. for the account of Ardsley O
     Sphere Fund, Ltd.                                          105,000                105,000               -0-
Goldman Sachs & Co. for the account of Ardsley
     Partners Fund I, L.P.                                       65,000                 65,000               -0-
Goldman Sachs & Co. for the account of Ardsley
     Partners Fund II, L.P.                                      95,000                 95,000               -0-
Goldman Sachs & Co. for the account of Ardsley
     Partners Institutional Fund, L.P.                           65,000                 65,000               -0-
Goldman Sachs & Co. for the account of HH Managed
     Account 1 Limited                                           60,000                 60,000               -0-
Grace Brothers, Ltd.                                             15,000                 15,000               -0-
Houston Firemen's Relief and Pension Fund "B"                     2,500                  2,500               -0-
Houston Municipal Employees Pension Fund                          4,500                  4,500               -0-
The Income Fund of America (1)                                  250,000                250,000               -0-
JAS Securities                                                   25,000                 25,000               -0-
JMG Capital Partners, L.P.                                       15,000                 15,000               -0-
JMG Triton Offshore Fund, Ltd.                                   90,000                 90,000               -0-
J.M. Hull Associates                                              3,800                  3,800               -0-
JP Morgan Securities                                             75,000                 75,000               -0-
KBC Financial Products                                           15,000                 15,000               -0-
Lehman Brothers Inc.                                             20,000                 20,000               -0-
LLT Limited                                                       8,000                  8,000               -0-
Loomis Sayles High Yield Income Fund                              1,000                  1,000               -0-
Lyxor Master Fund                                                22,000                 22,000               -0-
Mainstay Convertible Fund                                        45,000                 45,000               -0-
Mainstay VP Convertible Portfolio                                20,000                 20,000               -0-
McMahan Securities Company L.P.                                   5,550                  5,550               -0-
Merrill Lynch, Pierce, Fenner & Smith , Inc. (5)                128,990                128,990               -0-
Morgan Stanley & Co.                                             10,000                 10,000               -0-
New York Life Separate Account #7                                10,000                 10,000               -0-
Philip J. Hempleman                                              30,000                 30,000               -0-
Quattro Fund, LLC                                                 4,500                  4,500               -0-
RAM Trading Ltd.                                                140,000                140,000               -0-
Salomon Smith Barney Inc. (3)                                    50,710                 50,710               -0-
SAM Investments LDC                                             150,000                150,000               -0-
San Diego County Employees Retirement Association                20,000                 20,000               -0-
Southport Management Partners, L.P.                              25,000                 25,000               -0-
Southport Partners International, Ltd.                           62,000                 62,000               -0-
St. Claire International                                          5,000                  5,000               -0-
State of Connecticut Fund "F"                                     7,500                  7,500               -0-
Triton Capital Investments, Ltd.                                 28,000                 28,000               -0-
Value Line Convertible Fund, Inc.                                 5,000                  5,000               -0-
White River Securities LLC                                       20,000                 20,000               -0-
Zurich HFR Master Hedge Fund Index Ltd.                           5,000                  5,000               -0-

</TABLE>

                                       S-2

<PAGE>

                                  COMMON STOCK

<TABLE>
<CAPTION>
                                                                Shares Owned            Shares           Shares owned
                                                                 Before the          offered for          after this
                                                                  Offering               sale              offering
                                                                -------------       -------------    -----------------
<S>                                                             <C>                 <C>              <C>
Augusta Partners, L.P.                                               176,250             176,250              -0- *
American Variable Insurance Series, Growth-Income
     Fund (1)                                                      7,180,000             441,800        6,738,200 (4)
Bear, Stearns & Co. Inc.                                              47,000              47,000              -0- *
BNP Arbitrage SNC                                                    104,648             104,648              -0- *
BNP Copper Neff Convertible Strategies Fund, L.P.                      6,978               6,978              -0- *
Chase Securities, Inc. (2)                                            61,100              61,100              -0- *
CIBC World Markets International Arbitrage Corp.                     129,250             129,250              -0- *
Clinton Riverside Convertible Portfolio Limited                       94,000              94,000              -0- *
Dallas Police & Fire Pension System                                   45,825              45,825              -0- *
D.E. Shaw Investments, L.P.                                           70,500              70,500              -0- *
D.E. Shaw Valence, L.P.                                              105,750             105,750              -0- *
Deutsche Bank Securities Inc.                                      1,460,825           1,457,000            3,825 *
Donaldson, Lufkin & Jenrette Securities Corp.                        110,450             110,450              -0- *
Fifth Third Bank                                                      23,500              23,500              -0- *
Goldman Sachs & Co. for the account of Ardsley O
     Sphere Fund, Ltd.                                               246,750             246,750              -0- *
Goldman Sachs & Co. for the account of Ardsley
     Partners Fund I, L.P.                                           152,750             152,750              -0- *
Goldman Sachs & Co. for the account of Ardsley
     Partners Fund II, L.P.                                          223,250             223,250              -0- *
Goldman Sachs & Co. for the account of Ardsley
     Partners Institutional Fund, L.P.                               152,750             152,750              -0- *
Goldman Sachs & Co. for the account of HH Managed
     Account 1 Limited                                               141,000             141,000              -0- *
Grace Brothers, Ltd.                                                  35,250              35,250              -0- *
Houston Firemen's Relief and Pension Fund "B"                          5,875               5,875              -0- *
Houston Municipal Employees Pension Fund                              10,575              10,575              -0- *
The Income Fund of America (1)                                     7,325,700             587,500        6,738,200 (4)
JAS Securities                                                        58,750              58,750              -0- *
JMG Capital Partners, L.P.                                            35,250              35,250              -0- *
JMG Triton Offshore Fund, Ltd.                                       211,500             211,500              -0- *
J.M. Hull Associates                                                   8,930               8,930              -0- *
JP Morgan Securities                                                 176,250             176,250              -0- *
KBC Financial Products                                                60,250              35,250           25,000 *
Lehman Brothers Inc.                                                  47,000              47,000              -0- *
LLT Limited                                                           18,800              18,800              -0- *
Loomis Sayles High Yield Income Fund                                   2,350               2,350              -0- *
Lyxor Master Fund                                                     51,700              51,700              -0- *
Mainstay Convertible Fund                                            105,750             105,750              -0- *
Mainstay VP Convertible Portfolio                                     47,000              47,000              -0- *
McMahan Securities Company L.P.                                       12,925              12,925              -0- *
Merrill Lynch, Pierce, Fenner & Smith , Inc. (5)                   3,031,265           3,031,265              -0- *
Morgan Stanley & Co.                                                  23,500              23,500              -0- *
New York Life Separate Account #7                                     23,500              23,500              -0- *
Philip J. Hempleman                                                   70,500              70,500              -0- *
Quattro Fund, LLC                                                     28,200              10,575           17,625 *
RAM Trading Ltd.                                                     329,000             329,000              -0- *
Salomon Smith Barney Inc. (3)                                        119,169             119,169              -0- *
SAM Investments LDC                                                  352,500             352,500              -0- *
San Diego County Employees Retirement Association                     47,000              47,000              -0- *
</TABLE>

                                       S-3

<PAGE>

<TABLE>
<CAPTION>
                                                                Shares Owned            Shares           Shares owned
                                                                 Before the          offered for          after this
                                                                  Offering               sale              offering
                                                                -------------       -------------    -----------------
<S>                                                             <C>                 <C>              <C>
Southport Management Partners, L.P.                                   58,750              58,750              -0- *
Southport Partners International, Ltd.                               145,700             145,700              -0- *
St. Claire International                                              11,750              11,750              -0- *
State of Connecticut Fund "F"                                         17,625              17,625              -0- *
Triton Capital Investments, Ltd.                                      65,800              65,800              -0- *
Value Line Convertible Fund, Inc.                                     11,750              11,750              -0- *
White River Securities LLC                                            47,000              47,000              -0- *
Zurich HFR Master Hedge Fund Index Ltd.                               11,750              11,750              -0- *
</TABLE>

*    Represents less than one percent of total shares outstanding as of
     August 14, 2000.

(1)  Capital Research and Management Company serves as the investment adviser
     to this selling stockholder.

(2)  Chase Securities, Inc. served as co-underwriter for Rhythms Netconnections'
     private placements of 12 3/4% Senior Notes and 14% Senior Notes.

(3)  Salomon Smith Barney Inc. served as co-underwriter for Rhythms
     Netconnections' private placements of Series F preferred stock, 12 3/4%
     Senior Notes and 14% Senior Notes.

(4)  Includes a total of 6,738,200 shares of common stock, representing 8.5% of
     the total shares outstanding as of August 14, 2000, beneficially owned by
     other investment funds in which Capital Research and Management Company
     serves as investment adviser.

(5)  Merrill Lynch, Pierce, Fenner & Smith, Inc. served as co-underwriter for
     Rhythms Netconnections' private placements of Series F preferred stock, 13
     1/2% Senior Discount Notes, 12 3/4% Senior Notes and 14% Senior Notes and
     served as co-underwriter for Rhythms Netconnections' public offering of
     Common Stock.

                                     GENERAL

         You should rely only on the information provided or incorporated by
reference in this prospectus supplement and the prospectus. We have not
authorized anyone else to provide you with different information. You should not
assume that the information in this prospectus supplement is accurate as of any
date other than the date on the front of these documents.

         NEITHER THE SECURITIES AND EXCHANGE COMMISSION NOR ANY OTHER REGULATORY
BODY HAS APPROVED OR DISAPPROVED OF THESE SECURITIES OR PASSED UPON THE ACCURACY
OR ADEQUACY OF THIS PROSPECTUS. ANY REPRESENTATION TO THE CONTRARY IS A CRIMINAL
OFFENSE.

           The date of this Prospectus Supplement is October 30, 2000.

                                       S-4




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