<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 of Common Stock Percentage of
Owned That May 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 115,000 * 635 *
Manhattan Bank & 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 15,000,000 3.8% 82,873 *
Fund (Bermuda) L.P.
Argent Classic Convertible Arbitrage 4,000,000 * 22,099 *
Fund L.P.
Argent Convertible Arbitrage Fund Ltd. 1,000,000 * 5,525 *
Arkansas Public Employees Retirement 1,030,000 * 5,691 *
System
Arkansas Teachers Retirement System 3,512,000 * 19,403 *
Banc of America Advisors, 75,000 * 414 *
Inc./Nation's Annuity Trust
Banc of America Securities LLC 8,200,000 2.1% 45,304 *
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 380,000 * 2,099 *
Retirement Trust
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Principal Amount
at Maturity of Number of
Notes Shares of
Beneficially Percentage of Common Stock Percentage of
Owned That May Notes That May Be Common Stock
Name Be Sold Outstanding Sold(1) Outstanding(2)
-------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Brown & Williamson Tobacco Master 500,000 * 2,762 *
Retirement Trust
California Public Employees' 3,000,000 * 16,575 *
Retirement System Nominee Name:
Surfboard & Co.
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 535,000 * 2,956 *
/ Endowment
City of Richmond Retirement System 110,000 * 608 *
City of Worcester Retirement System 150,000 * 829 *
Clinton Riverside Convertible 2,000,000 * 11,050 *
Portfolio Limited
Commonwealth of Pennsylvania Public 2,200,000 * 12,155 *
School Employees' Retirement System
Cornell University Endowment - 1,350,000 * 7,459 *
Domestic Sector
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 385,000 * 2,127 *
Endowment
Delaware Pers 1,545,000 * 8,536 *
Delphi Financial Group, Inc. 500,000 * 2,762 *
Detroit Edison Employees' Retirement 700,000 * 3,867 *
Trust
Detroit Medical Center Endowment / 120,000 * 663 *
Depreciation Fund
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 2,205,000 * 12,182 *
Yield Cayman Unit Trust
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 380,000 * 2,099 *
Account - Balanced
Equitable Life Assurance Separate 7,745,000 1.9% 42,790 *
Account - Convertibles
Fiduciary Trust Company International 750,000 * 4,144 *
Fire & Police Pension Fund, San Atonio 300,000 * 1,657 *
Firemen's Annuity & Benefit Fund of 180,000 * 994 *
Chicago - Medium Grade Portfolio
Forrestal Funding Master Trust 5,155,000 1.3% 28,481 *
General Motors Pension Fund - High 1,500,000 * 8,287 *
Yield Sector
Goldman Sachs & Company 250,000 * 1,381 *
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Principal Amount
at Maturity of Number of
Notes Shares of
Beneficially Percentage of Common Stock Percentage of
Owned That May Notes That May Be Common Stock
Name Be Sold Outstanding Sold(1) Outstanding(2)
-------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Granville Capital Corporation 4,000,000 * 22,099 *
Halliburton Company - High Yield 750,000 * 4,144 *
Sector
Health Services Retirement Plan 200,000 * 1,105 *
Houston Firemen's Relief and Pension 1,500,000 * 8,287 *
Fund "B"
Houston Municipal Employees Pension 1,250,000 * 6,906 *
System
HT Insight Convertible Securities Fund 250,000 * 1,381 *
IBM Retirement Plan 65,000 * 359 *
ICI American Holdings Trust 825,000 * 4,558 *
ING Barings LLC 200,000 * 1,105 *
Jeffries & Company 500,000 * 2,762 *
JH Mennen GST 225,000 * 1,243 *
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 *
Key Asset Management Inc. as Agent 1,300,000 * 7,182 *
for the Victory Convertible
Securities Fund
Lehman Brothers Inc. 50,000 * 276 *
Loomis Sayles Bond Fund 1,000,000 * 5,525 *
Loomis Sayles High Yield Fixed Income 300,000 * 1,657 *
Fund
Loomis Sayles High Yield Fund 100,000 * 552 *
Loomis Sayles International High 400,000 * 2,210 *
Yield Fund
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 14,845,000 3.7% 82,017 *
yield Corporate Bond Fund Series
Mainstay Funds, Inc., on behalf of 50,000 * 276 *
its Strategic Value Fund
Mainstay Funds, Inc., on behalf of 170,000 * 939 *
its Strategic Income Fund
Mainstay VP Convertible Portfolio 2,750,000 * 15,193 *
Mainstay VP Series Fund, Inc., on 2,720,000 * 15,028 *
behalf of its High Yield Corporate
Bond Portfolio
Memphis Light, Gas & Water Retirement 4,405,000 1.1% 24,337 *
Fund
MetLife General Motors High Yield 600,000 * 3,315 *
Pension
MetLife Pension DB Separate Account 300,000 * 1,657 *
249
Metropolitan Life Loomis Sayles High 760,000 * 4,199 *
Yield Bond Portfolio
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 5,500,000 1.4% 30,387 *
Convertible Securities Trust
Morgan Stanley Dean Witter Income 3,000,000 * 16,575 *
Builder
Morgan Stanley Dean Witter Variable 2,000,000 * 11,050 *
Income Builder
Nations Master Investment Trust 165,000 * 912 *
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Principal Amount
at Maturity of Number of
Notes Shares of
Beneficially Percentage of Common Stock Percentage of
Owned That May Notes That May Be Common Stock
Name Be Sold Outstanding Sold(1) Outstanding(2)
--------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
New York Life Insurance Company 20,500,000 5.1% 113,260 *
New York Life Insurance & Annuity 2,500,000 * 13,812 *
Corporation
New York Life Separate Account #7 2,500,000 * 13,812 *
New York State Electric & Gas Corp. 200,000 * 1,105 *
Retirement Benefit Plan
Nicholas-Applegate Convertible Fund 212,000 * 1,171 *
Nisource Corp Services Company 310,000 * 1,713 *
NMS Services (Cayman) Inc. 5,550,000 1.4% 30,663 *
Norfolk County Retirement Board 150,000 * 829 *
Oppenheimer Convertible Securities 6,000,000 1.5% 33,149 *
Fund
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. 200,000 * 1,105 *
Pension
Pension Plan of Constellation Energy 205,000 * 1,133 *
Group, Inc.
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 505,000 * 2,790 *
City of Houston
Policemen's & Firefighters' 110,000 * 608 *
Retirement Fund of Lexington-Fayette
Urban Cnty Gvnt
Post Balanced Fund, LP 500,000 * 2,762 *
Post High Yield, LP 500,000 * 2,762 *
Putnam Asset Allocation Funds - 337,000 * 1,862 *
Balanced Portfolio
Putnam Asset Allocation Funds - 204,000 * 1,127 *
Conservative Portfolio
Putnam Convertible Income - Growth 4,565,000 1.1% 25,221 *
Trust
Putnam Convertible Opportunities and 119,000 * 657 *
Income Trust
Putnam High Income Convertible Bond 724,000 * 4,000 *
Fund
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 *
Scottish Widows Fund & Life Assurance 1,615,000 * 8,923 *
Society
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 3,220,000 * 17,790 *
Retirement System
Teachers' Retirement System of 820,000 * 4,530 *
Louisiana
Teamsters Affiliates Pension Plan 680,000 * 3,757 *
Teamsters Retirement & Family 35,000 * 193 *
Protection Plan
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Principal Amount
at Maturity of Number of
Notes Shares of
Beneficially Percentage of Common Stock Percentage of
Owned That May Notes That May Be Common Stock
Name Be Sold Outstanding Sold(1) Outstanding(2)
---------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Tennessee Valley Authority Retirement 970,000 * 5,359 *
System
The First Foundation 1,220,000 * 6,740 *
The TCW Group, Inc. 60,000 * 331 *
The 1199 Health Care Employees 945,000 * 5,221 *
Pension Fund
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 200,000 * 1,105 *
Tri-State Pension Fund
United Mine Workers of America Health 1,000,000 * 5,525 *
and Retirement Fund
Value Line Convertible Fund, Inc. 500,000 * 2,762 *
Value Realization Fund, LP 8,000,000 2.0% 44,199 *
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. 70,000 * 387 *
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)(1)(i) of the Exchange Act using
59,066,242 shares of common stock outstanding as of December 31, 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 January 8, 2001.
