<PAGE>
PROSPECTUS SUPPLEMENT FILED PURSUANT TO RULE 424(b)(3)
TO PROSPECTUS DATED AUGUST 7, 2000 REGISTRATION NO. 333-41848
EFFICIENT NETWORKS, INC.
$400,000,000
5% Convertible Subordinated Notes Due 2005 and
the Common Stock Issuable Upon Conversion of the Notes
This prospectus supplement relates to the resale by the selling
securityholders of 5% convertible subordinated notes due 2005 of Efficient
Networks, Inc. and the shares of common stock of Efficient Networks, Inc.
issuable upon the conversion of their notes.
This prospectus supplement should be read in conjunction with the
prospectus dated August 7, 2000, which is to be delivered with this prospectus
supplement. All capitalized terms used but not defined in the prospectus
supplement shall have the meanings given to them in the prospectus.
The following table sets forth information as of the date hereof concerning
beneficial ownership of the principal amount of the notes and the underlying
common stock beneficially owned by each selling securityholder as listed below.
All information concerning beneficial ownership has been supplied to us by the
selling securityholders named in the table below.
<TABLE>
<CAPTION>
Principal Amount Number of
at Maturity of Shares of
Notes Beneficially Percentage Of Common Stock Percentage of
Owned That May Be Notes That May Be Common Stock
Name Sold Outstanding Sold(1) Outstanding (2)
------------------------------------------------- ------------------- -------------- ---------------- -----------------
<S> <C> <C> <C> <C>
401 Savings Plan of the Chase Manhattan Bank & 115,000 * 635 *
Certified Affiliated Coj........................
AFTRA Health Fund................................ 2,000,000 * 11,050 *
AIM Strategic Income Fund........................ 2,000,000 * 11,050 *
Alta Partners Holdings, LDC...................... 5,969,000 1.5 % 32,978 *
Anschutz Foundation.............................. 150,000 * 829 *
Argent Classic Convertible Arbitrage Fund
(Bermuda) L.P................................... 15,000,000 3.8 % 82,873 *
Argent Classic Convertible Arbitrage Fund L.P.... 4,000,000 1.0 % 22,099 *
Argent Convertible Arbitrage Fund Ltd............ 1,000,000 * 5,525 *
Arkansas Public Employees Retirement System...... 1,030,000 * 5,691 *
Arkansas Teachers Retirement System.............. 3,512,000 * 19,403 *
Banc of America Advisors, Inc./Nation's Annuity
Trust........................................... 75,000 * 414 *
Banc of America Securities LLC................... 8,550,000 2.1 % 47,238 *
Baptist Health of South Florida.................. 212,000 * 1,171 *
BBT Fund, L.P.................................... 18,000,000 4.5 % 99,448 *
BNY Hamilton Equity Income Fund.................. 5,000,000 1.3 % 27,624 *
Boston Museum of Fine Arts....................... 115,000 * 635 *
Brown & Williamson Master Retirement Trust....... 380,000 * 2,099 *
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Principal Amount Number of
at Maturity of Shares of
Notes Beneficially Percentage Of Common Stock Percentage of
Owned That May Be Notes That May Be Common Stock
Name Sold Outstanding Sold(1) Outstanding (2)
------------------------------------------------- ------------------- -------------- ---------------- -----------------
<S> <C> <C> <C> <C>
Brown & Williamson Tobacco Master Retirement
Trust........................................... 500,000 * 2,762 *
California Public Employees' Retirement System
Nominee Name: Surfboard & Co................... 3,000,000 * 16,575 *
Carnegie Mellon University....................... 370,000 * 2,044 *
Castle Convertible Fund, Inc..................... 500,000 * 2,762 *
Champion International Corporation............... 618,000 * 3,414 *
Children's Medical Center........................ 200,000 * 1,105 *
Christian Science Trustees for Gifts / Endowment. 535,000 * 2,956 *
Chrysler Corporation Master Retirement Trust..... 3,325,000 * 18,370 *
City of Richmond Retirement System............... 110,000 * 608 *
City of Worcester Retirement System.............. 150,000 * 829 *
Clinton Riverside Convertible Portfolio Limited.. 2,000,000 * 11,050 *
Commonwealth of Pennsylvania Public School
Employees' Retirement System.................... 2,200,000 * 12,155 *
Cornell University Endowment - Domestic Sector... 1,350,000 * 7,459 *
Credit Suisse First Boston Corporation........... 37,150,000 9.3 % 205,249 *
Dallas Police & Fire Pension System.............. 800,000 * 4,420 *
David Lipscomb University General Endowment...... 385,000 * 2,127 *
Delaware Pers.................................... 1,545,000 * 8,536 *
Delta Air Lines Master Trust..................... 1,250,000 * 6,906 *
Detroit Edison Employees' Retirement Trust....... 700,000 * 3,867 *
Detroit Medical Center Endowment / Depreciation
Fund............................................ 120,000 * 663 *
Detroit Medical Center Pension Plan.............. 230,000 * 1,271 *
Deutsche Bank Securities Inc..................... 1,500,000 * 8,287 *
Dow Corning Retirement Plan...................... 250,000 * 1,381 *
EA/Cayman Unit Trust - EA/Mackay High Yield
Cayman Unit Trust............................... 2,205,000 * 12,182 *
Engineers Joint Pension Fund..................... 476,000 * 2,630 *
EQAT Alliance Growth & Income Account............ 12,915,000 3.2 % 71,354 *
EQAT Alliance Growth Investors................... 6,950,000 1.7 % 38,398 *
Equitable Life Assurance Separate Account -
Balanced........................................ 380,000 * 2,099 *
Equitable Life Assurance Separate Account -
Convertibles.................................... 7,745,000 1.9 % 42,790 *
Fiduciary Trust Company International............ 750,000 * 4,144 *
Fire & Police Pension Fund, San Atonio........... 300,000 * 1,657 *
Firemen's Annuity & Benefit Fund of Chicago -
Medium Grade Portfolio.......................... 180,000 * 994 *
Forrestal Funding Master Trust................... 5,155,000 1.3 % 28,481 *
General Motors Pension Fund - High Yield Sector.. 1,500,000 * 8,287 *
Goldman Sachs & Company.......................... 1,000,000 * 5,525 *
Granville Capital Corporation.................... 4,000,000 1.0 % 22,099 *
Halliburton Company - High Yield Sector.......... 750,000 * 4,144 *
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Principal Amount Number of
at Maturity of Shares of
Notes Beneficially Percentage Of Common Stock Percentage of
Owned That May Be Notes That May Be Common Stock
Name Sold Outstanding Sold(1) Outstanding (2)
------------------------------------------------- ------------------- -------------- ---------------- -----------------
<S> <C> <C> <C> <C>
Health Services Retirement Plan.................. 200,000 * 1,105 *
Houston Firemen's Relief and Pension Fund "B".... 1,500,000 * 8,287 *
Houston Municipal Employees Pension System....... 1,250,000 * 6,906 *
HT Insight Convertible Securities Fund........... 250,000 * 1,381 *
IBM Retirement Plan.............................. 410,000 * 2,265 *
ICI American Holdings Trust...................... 825,000 * 4,558 *
JMG Capital Partners, LP......................... 12,000,000 3.0 % 66,298 *
JMG Triton Offshore Fund Ltd..................... 11,055,000 2.8 % 61,077 *
KBC Financial Products........................... 4,000,000 1.0 % 22,099 *
Loomis Sayles Bond Fund.......................... 1,000,000 * 5,525 *
Loomis Sayles High Yield Fixed Income Fund....... 300,000 * 1,657 *
Loomis Sayles High Yield Fund.................... 100,000 * 552 *
Loomis Sayles International High Yield Fund...... 400,000 * 2,210 *
Lyxor Master Fund................................ 500,000 * 2,762 *
Maine State Retirement System.................... 1,350,000 * 7,459 *
Mainstay Convertible Fund........................ 5,750,000 1.4 % 31,768 *
Mainstay Global High Yield Fund.................. 50,000 * 276 *
Mainstay Funds, on behalf of High Yield
Corporate Bond Fund Series...................... 14,845,000 3.7 % 82,017 *
Mainstay Funds, Inc., on behalf of its Strategic
Value Fund...................................... 50,000 * 276 *
Mainstay Funds, Inc., on behalf of its Strategic
Income Fund..................................... 170,000 * 939 *
Mainstay VP Convertible Portfolio................ 2,750,000 * 15,193 *
Memphis Light, Gas & Water Retirement Fund....... 4,405,000 1.1 % 24,337 *
MetLife General Motors High Yield Pension........ 600,000 * 3,315 *
MetLife Pension DB Separate Account 249.......... 300,000 * 1,657 *
Metropolitan Life Loomis Sayles High Yield Bond
Portfolio....................................... 760,000 * 4,199 *
Minneapolis Teachers Retirement Fund............. 550,000 * 3,039 *
Mitsui Life Global Umbrella Fund................. 235,000 * 1,298 *
Morgan Stanley & Co.............................. 10,000,000 2.5 % 55,249 *
Morgan Stanley Dean Witter Convertible
Securities Trust................................ 5,500,000 1.4 % 30,387 *
Morgan Stanley Dean Witter Income Builder........ 3,000,000 * 16,575 *
Morgan Stanley Dean Witter Variable Income
Builder......................................... 2,000,000 * 11,050 *
Motion Picture Industry Health Plan - Active
Member Fund..................................... 385,000 * 2,127 *
Motion Picture Industry Health Plan - Retiree
Member Fund..................................... 195,000 * 1,077 *
Nations Master Investment Trust.................. 165,000 * 912 *
New York Life Insurance Company.................. 20,500,000 5.1 % 113,260 *
New York Life Insurance & Annuity Corporation.... 2,500,000 * 13,812 *
New York Life Separate Account #7................ 2,500,000 * 13,812 *
New York State Electric & Gas Corp. Retirement
Benefit Plan.................................... 200,000 * 1,105 *
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Principal Amount Number of
at Maturity of Shares of
Notes Beneficially Percentage Of Common Stock Percentage of
Owned That May Be Notes That May Be Common Stock
Name Sold Outstanding Sold(1) Outstanding (2)
------------------------------------------------- ------------------- -------------- ---------------- -----------------
<S> <C> <C> <C> <C>
Nicholas-Applegate Convertible Fund.............. 212,000 * 1,171 *
Nisource Corp Services Company................... 310,000 * 1,713 *
Norfolk County Retirement Board.................. 150,000 * 829 *
OCM Convertible Trust............................ 1,475,000 * 8,149 *
Oppenheimer Convertible Securities Fund.......... 6,000,000 1.5 % 33,149 *
Pacific Life Insurance Company................... 1,500,000 * 8,287 *
Partner Reinsurance Company Ltd.................. 660,000 * 3,646 *
Partners Healthcare System Inc................... 50,000 * 276 *
Partners Healthcare System Inc. Pension.......... 200,000 * 1,105 *
Pension Plan of Constellation Energy Group, Inc.. 205,000 * 1,133 *
Pension Reserves Investment Trust................ 3,250,000 * 17,956 *
Peter & Elizabeth Tower Foundation............... 35,000 * 193 *
Physicians Life.................................. 373,000 * 2,061 *
Pilgrim Convertible Fund......................... 4,931,000 1.2 % 27,243 *
Police Officers Pension System of the City of
Houston......................................... 505,000 * 2,790 *
Policemen's & Firefighters' Retirement Fund of
Lexington-Fayette Urban County Government....... 110,000 * 608 *
Putnam Asset Allocation Funds - Balanced
Portfolio....................................... 337,000 * 1,862 *
Putnam Asset Allocation Funds - Conservative
Portfolio....................................... 204,000 * 1,127 *
Putnam Convertible Income - Growth Trust......... 4,565,000 1.1 % 25,221 *
Putnam Convertible Opportunities and Income Trust 119,000 * 657 *
Putnam High Income Convertible Bond Fund......... 724,000 * 4,000 *
Reliant Energy Retirement Plan................... 1,050,000 * 5,801 *
Robertson Stephens............................... 17,000,000 4.3 % 93,923 *
San Diego City Retirement........................ 956,000 * 5,282 *
San Diego County Convertible..................... 2,482,000 * 13,713 *
San Diego County Employee's Retirement
Association..................................... 270,000 * 1,492 *
Scottish Widows Fund & Life Assurance Society.... 1,615,000 * 8,923 *
State Employees' Retirement Fund of the State of
Delaware........................................ 1,685,000 * 9,309 *
State of Connecticut Combined Investment Funds... 3,750,000 * 20,718 *
State of Connecticut Fund "F".................... 1,650,000 * 9,116 *
State of Oregon Equity........................... 6,500,000 1.6 % 35,912 *
State of Rhode Island Employees Retirement System 3,220,000 * 17,790 *
Teachers' Retirement System of Louisiana......... 820,000 * 4,530 *
Teamsters Affiliates Pension Plan................ 680,000 * 3,757 *
Teamsters Retirement & Family Protection Plan.... 35,000 * 193 *
The Frist Foundation............................. 1,220,000 * 6,740 *
The 1199 Health Care Employees Pension Fund...... 945,000 * 5,221 *
The City of Memphis Retirement System............ 490,000 * 2,707 *
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Principal Amount Number of
at Maturity of Shares of
Notes Beneficially Percentage Of Common Stock Percentage of
Owned That May Be Notes That May Be Common Stock
Name Sold Outstanding Sold(1) Outstanding (2)
------------------------------------------------- ------------------- -------------- ---------------- -----------------
<S> <C> <C> <C> <C>
Ubkam Arbitrage Fund............................. 4,100,000 1.0 % 22,652 *
Ubkam Global High Yield Fund..................... 5,400,000 1.4 % 29,834 *
United Food and Commercial Workers Tri-State
Pension Fund.................................... 200,000 * 1,105 *
United Mine Workers of America Health and
Retirement Fund................................. 1,000,000 * 5,525 *
Value Line Convertible Fund, Inc................. 500,000 * 2,762 *
Vanguard Convertible Securities Fund, Inc........ 3,835,000 * 21,188 *
Van Kampen Convertible Securities Fund........... 1,500,000 * 8,287 *
Van Kampen Harbor Fund........................... 9,500,000 2.4 % 52,486 *
Wake Forest University........................... 906,000 * 5,006 *
Wasserstein Perella Securities Inc............... 3,000,000 * 16,575 *
Winchester Convertible Plus Ltd.................. 410,000 * 2,265 *
Writers Guild - Industry Health Fund............. 295,000 * 1,630 *
Zeneca Holdings Trust............................ 790,000 * 4,365 *
</TABLE>
______________________
*Less than 1%
(1) Assumes conversion of all of the holder's notes at a conversion price of
$181.00 per share of common stock. However, this conversion price will be
subject to adjustment as described under "Description of Notes--Conversion
of Notes" in the prospectus. As a result, the amount of common stock
issuable upon conversion of the notes may increase or decrease in the
future.
(2) Calculated based on Rule 13d-3(d)(i) of the Exchange Act using 55,737,156
shares of common stock outstanding as of June 22, 2000. In calculating
this amount, we treated as outstanding the number of shares of common stock
issuable upon conversion of all of that particular holder's notes.
However, we did not assume the conversion of any other holder's notes.
----------------
The securities offered hereby involve a high degree of risk. See "Risk
Factors" beginning on page 7 of the prospectus for information that you should
consider before purchasing these securities.
----------------
Neither the Securities and Exchange Commission nor any state securities
commission has approved or disapproved of these securities or determined if this
prospectus is truthful or complete. Any representation to the contrary is a
criminal offense.
This Prospectus Supplement is dated September 6, 2000.
