<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
at Maturity of Number of
Notes Shares of
Beneficially Percentage Common Stock Percentage of
Owned That May of Notes That May Be Common Stock
Name Be Sold Outstanding Sold(1) Outstanding(2)
---- ---------------- ----------- ------------ --------------
<S> <C> <C> <C> <C>
401 Savings Plan of the
Chase Manhattan Bank &
Certified Affiliated
Coj. .................. 115,000 * 635 *
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 * 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 *
Brown & Williamson
Tobacco Master
Retirement Trust....... 500,000 * 2,762 *
California Public
Employees' Retirement
System Nominee Name:
Surfboard & Co......... 3,000,000 * 16,575 *
Cantor Fitzgerald &
Company................ 4,250,000 1.1% 23,481 *
Canyon Value Realization
(Cayman) Ltd........... 11,650,000 2.9% 64,365 *
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 *
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 *
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Principal Amount
at Maturity of Number of
Notes Shares of
Beneficially Percentage Common Stock Percentage of
Owned That May of Notes That May Be Common Stock
Name Be Sold Outstanding Sold(1) Outstanding(2)
---- ---------------- ----------- ------------ --------------
<S> <C> <C> <C> <C>
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 *
Delphi Financial Group,
Inc. .................. 500,000 * 2,762 *
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 *
Elf Aquitaine........... 275,000 * 1,519 *
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................ 250,000 * 1,381 *
Granville Capital
Corporation............ 4,000,000 * 22,099 *
Halliburton Company--
High Yield Sector...... 750,000 * 4,144 *
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 Pension Plan........ 410,000 * 2,265 *
ICI American Holdings
Trust.................. 825,000 * 4,558 *
Jeffries & Company...... 500,000 * 2,762 *
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 * 22,099 *
Lehman Brothers Inc. ... 50,000 * 276 *
</TABLE>
S-2
<PAGE>
<TABLE>
<CAPTION>
Principal Amount
at Maturity of Number of
Notes Shares of
Beneficially Percentage Common Stock Percentage of
Owned That May of Notes That May Be Common Stock
Name Be Sold Outstanding Sold(1) Outstanding(2)
---- ---------------- ----------- ------------ --------------
<S> <C> <C> <C> <C>
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 *
Mainstay VP Series Fund,
Inc., on behalf of its
High Yield Corporate
Bond Portfolio......... 2,720,000 * 15,028 *
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 *
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 *
Nicholas-Applegate
Convertible Fund....... 212,000 * 1,171 *
Nisource Corp Services
Company................ 310,000 * 1,713 *
Norfolk County
Retirement Board....... 150,000 * 829 *
Oppenheimer Convertible
Securities Fund........ 6,000,000 1.5% 33,149 *
Opportunity Fund, LLC... 1,500,000 * 8,287 *
Oxford, Lord Abbett &
Company................ 2,000,000 * 11,050 *
Pacific Life Insurance
Company................ 1,500,000 * 8,287 *
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 *
</TABLE>
S-3
<PAGE>
<TABLE>
<CAPTION>
Principal Amount
at Maturity of Number of
Notes Shares of
Beneficially Percentage Common Stock Percentage of
Owned That May of Notes That May Be Common Stock
Name Be Sold Outstanding Sold(1) Outstanding(2)
---- ---------------- ----------- ------------ --------------
<S> <C> <C> <C> <C>
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
Cnty Gvnt.............. 110,000 * 608 *
Post Balanced Fund, LP.. 500,000 * 2,762 *
Post High Yield, LP..... 500,000 * 2,762 *
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 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 *
Tennessee Valley
Authority Retirement
System................. 970,000 * 5,359 *
The Frist Foundation.... 1,220,000 * 6,740 *
The TCW Group, Inc. .... 60,000 * 331 *
The 1199 Health Care
Employees Pension
Fund................... 945,000 * 5,221 *
The City of Memphis
Retirement System...... 490,000 * 2,707 *
Ubkam Arbitrage Fund.... 6,100,000 1.5% 33,702 *
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 *
Value Realization Fund,
LP..................... 8,000,000 2.0% 44,199 *
</TABLE>
S-4
<PAGE>
<TABLE>
<CAPTION>
Principal Amount
at Maturity of Number of
Notes Shares of
Beneficially Percentage Common Stock Percentage of
Owned That May of Notes That May Be Common Stock
Name Be Sold Outstanding Sold(1) Outstanding(2)
---- ---------------- ----------- ------------ --------------
<S> <C> <C> <C> <C>
Value Realization Fund
B, LP.................. 450,000 * 2,486 *
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 *
Wyoming State
Treasurer.............. 1,031,000 * 5,696 *
Zeneca Holdings Trust... 790,000 * 4,365 *
Zurich HFR Master Hedge
Index Ltd.............. 400,000 * 2,210 *
</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 58,967,351
shares of common stock outstanding as of November 8, 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 December 5, 2000.
S-5
