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OMB APPROVAL
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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
SCHEDULE 13D
(Rule 13d-101)
Under the Securities Exchange Act of 1934
(Amendment No. ________)
Symphonix Devices, Inc.
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(Name of Issuer)
Common Stock
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(Title of Class of Securities)
871951 10 9
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(CUSIP Number)
J.P. Morgan Capital, L.P.
60 Wall Street
New York, New York 10260
(212) 648-4084
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(Name, Address and Telephone Number of Person
Authorized to Receive Notices and Communications)
November 10, 2000
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(Date of Event which Requires Filing of This Statement)
If the filing person has previously filed a statement on Schedule 13G to report
the acquisition that is the subject of this Schedule 13D, and is filing this
schedule because of Rule 13d-1(b)(3) or 4, check the following box [_].
(SC13D-07/98)
<PAGE>
CUSIP No. 871951 10 SCHEDULE 13D Page 2 of 8 Pages
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1 NAME OF REPORTING PERSONS
S.S. OR I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS
J.P. Morgan Capital, L.P.
#13-4133600
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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 SOURCE OF FUNDS*
WC
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5 CHECK BOX IF DISCLOSURE IF LEGAL PROCEEDINGS IS REQUIRED
PURSUANT TO ITEMS 2(d) OR 2(e) [_]
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6 CITIZENSHIP OR PLACE OF ORGANIZATION
Delaware
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7 SOLE VOTING POWER
NUMBER OF 2,460,630
SHARES _________________________________________________________________
8 SHARED VOTING POWER
BENEFICIALLY
0
OWNED BY
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EACH 9 SOLE DISPOSITIVE POWER
REPORTING 2,460,630
PERSON _________________________________________________________________
10 SHARED DISPOSITIVE POWER
WITH
0
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11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
2,460,630
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12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES*
[_]
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13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
12.5%
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14 TYPE OF REPORTING PERSON*
PN
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*SEE INSTRUCTIONS BEFORE FILLING OUT!
INCLUDE BOTH SIDES OF THE COVER PAGE, RESPONSES TO ITEMS 1-7
(INCLUDING EXHIBITS) OF THE SCHEDULE, AND THE SIGNATURE ATTESTATION
<PAGE>
CUSIP No. 871951 10 SCHEDULE 13D Page 3 of 8 Pages
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1 NAME OF REPORTING PERSONS
S.S. OR I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS
J.P. Morgan Capital Corporation
#13-3610583
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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 SOURCE OF FUNDS*
00
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5 CHECK BOX IF DISCLOSURE IF LEGAL PROCEEDINGS IS REQUIRED
PURSUANT TO ITEMS 2(d) OR 2(e) [_]
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6 CITIZENSHIP OR PLACE OF ORGANIZATION
Delaware
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7 SOLE VOTING POWER
NUMBER OF 0
SHARES _________________________________________________________________
8 SHARED VOTING POWER
BENEFICIALLY
2,460,630
OWNED BY
-----------------------------------------------------------------
EACH 9 SOLE DISPOSITIVE POWER
REPORTING 0
PERSON _________________________________________________________________
10 SHARED DISPOSITIVE POWER
WITH
2,460,630
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11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
2,460,630
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12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES*
[_]
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13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
12.5%
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14 TYPE OF REPORTING PERSON*
CO
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*SEE INSTRUCTIONS BEFORE FILLING OUT!
INCLUDE BOTH SIDES OF THE COVER PAGE, RESPONSES TO ITEMS 1-7
(INCLUDING EXHIBITS) OF THE SCHEDULE, AND THE SIGNATURE ATTESTATION
<PAGE>
CUSIP No. 871951 10 SCHEDULE 13D Page 4 of 8 Pages
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1 NAME OF REPORTING PERSONS
S.S. OR I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS
J.P. Morgan & Co. Incorporated
#13-2635764
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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 SOURCE OF FUNDS*
00
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5 CHECK BOX IF DISCLOSURE IF LEGAL PROCEEDINGS IS REQUIRED
PURSUANT TO ITEMS 2(d) OR 2(e) [_]
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6 CITIZENSHIP OR PLACE OF ORGANIZATION
Delaware
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7 SOLE VOTING POWER
NUMBER OF 0
SHARES _________________________________________________________________
8 SHARED VOTING POWER
BENEFICIALLY
2,460,630
OWNED BY
-----------------------------------------------------------------
EACH 9 SOLE DISPOSITIVE POWER
REPORTING 0
PERSON _________________________________________________________________
10 SHARED DISPOSITIVE POWER
WITH
2,460,630
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11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
2,460,630
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12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES*
[_]
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13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
12.5%
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14 TYPE OF REPORTING PERSON*
HC, CO
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*SEE INSTRUCTIONS BEFORE FILLING OUT!
INCLUDE BOTH SIDES OF THE COVER PAGE, RESPONSES TO ITEMS 1-7
(INCLUDING EXHIBITS) OF THE SCHEDULE, AND THE SIGNATURE ATTESTATION
<PAGE>
CUSIP No. 871951 10 SCHEDULE 13D Page 5 of 8 Pages
This Schedule 13D is being filed pursuant to Rule 13D-1(a)(1) of Regulation
13D-G of the General Rules and Regulations of the Securities and Exchange Act of
1934, as amended, on behalf of J.P. Morgan & Co., Incorporated ("JPM"), J.P.
Morgan Capital Corporation, a Delaware corporation, a wholly owned subsidiary of
JPM and the general partner of JP Morgan Capital, L.P. ("JPMCC"), and J.P.
Morgan Capital, L.P., a Delaware limited partnership ("JPMCLP," and collectively
with JPM and JPMCC, the "Reporting Persons") to report the acquisition by JPMCLP
of beneficial ownership of in excess of five percent (5%) of the Common Stock of
Symphonix Devices, Inc. (the "Reportable Transaction") as a result of the
acquisition by JPMCLP of 2,460,630 shares of Common Stock of Symphonix Devices,
Inc.
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Item 1. Security and Issuer.
This statement on Schedule 13D (the "Schedule 13D") relates to the Common Stock,
par value $0.001 per share (the "Common Stock") of Symphonix Devices, Inc., a
Delaware corporation ("Symphonix"). The address of the principal executive
offices of Symphonix is 2331 Zanker Road, San Jose, California 95131-1107.
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Item 2. Identity and Background.
Information as to each executive officer and director of JPM and JPMCC and each
partner and general partner of JPMCLP is set forth on Schedule A hereto and is
incorporated herein by this reference.
(a) Name of Person
(i) J.P. Morgan & Co. Incorporated (ii) J.P. Morgan Capital
Corporation (iii) J.P. Morgan Capital, L.P.
(b) Place of Organization, Principal Business and Address of Principal
Business and Principal Office:
(i) JPM is a publicly held Delaware corporation and is a bank holding
company. JPM's principal business and office address is 60 Wall
Street, New York, New York 10260.
(ii) JPMCC is a Delaware corporation and is an unregistered investment
company that invests either directly or indirectly through its
subsidiaries in debt and equity securities for its own account,
subject to applicable laws and regulations, including, without
limitation, the Bank Holding Company Act of 1956, as amended, and
the regulations thereunder and the policies of the Federal
Reserve Board in connection therewith (the "Bank Holding Company
Act"). JPMCC's principal business and office address is 60 Wall
Street, New York, New York 10260.
<PAGE>
CUSIP No. 871951 10 SCHEDULE 13D Page 6 of 8 Pages
(iii) JPMCLP is a Delaware limited partnership and is a private equity
limited partnership. JPMCLP's principal business and office
address is 60 Wall Street, York, New York 10260.
(c) Legal Proceedings
None of the Reporting Persons nor, to the best of each Reporting
Person's knowledge, any person named on Schedule A hereto, has during
the last five years been convicted in a criminal proceeding (excluding
traffic violations or similar misdemeanors) or was a party to a civil
proceeding of a judicial or administrative body of competent
jurisdiction and as a result of such proceeding was or is subject to a
judgment, decree or final order enjoining future violations of, or
prohibiting or mandating activities subject to, federal or state
securities laws or finding any violation with respect to such laws.
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Item 3. Source and Amount of Funds or Other Consideration.
Prior to November 10, 2000, none of the Reporting Persons beneficially owned any
shares of Common Stock. Pursuant to the Common Stock Purchase Agreement, dated
as of September 18, 2000, by and between Symphonix, JPMCLP, and certain other
persons signatory thereto (the "Purchase Agreement"), JPMCLP purchased from
Symphonix 2,460,630 shares of Common Stock for an aggregate purchase price of
$10,000,000.32. The source of the funds used for JPMCLP's purchase of the shares
of Common Stock was working capital, all of which was JPMCLP's own funds.
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Item 4. Purpose of Transaction.
The shares of Common Stock purchased by JPMCLP were acquired for investment
purposes and not with the present intention of acquiring control of Symphonix's
business.
Although upon purchase of the shares of Common Stock JPMCLP obtained the
right to appoint one person to Symphonix's Board of Directors, such right will
not result in JPMCLP controlling the Board of Directors or Symphonix's business.
Pursuant to the Purchase Agreement, JPMCLP acquired an aggregate of
2,460,630 shares of Common Stock. As of November 10, 2000, the outstanding
Common Stock of Symphonix consisted of 19,685,040 shares of Common Stock.
Assuming the conditions set forth in the Purchase Agreement are satisfied,
JPMCLP also may acquire additional shares of Common Stock pursuant to certain
terms of the Purchase Agreement, which terms are described in Item 6 below.
<PAGE>
CUSIP No. 871951 10 SCHEDULE 13D Page 7 of 8 Pages
The Reporting Persons may from time to time acquire beneficial ownership of
additional Common Stock and from time to time cease to have beneficial ownership
of Common Stock, depending on price, market conditions, availability of funds,
evaluation of alternative investments and other factors. Such acquisitions or
dispositions may result from investment decisions by JPMCLP.
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Item 5. Interest in Securities of the Issuer.
(a) See Cover Pages, Items 11 and 13. JPMCLP may be deemed to
beneficially own 2,460,630 shares of Common Stock constituting approximately
12.5% of the issued and outstanding Common Stock of Symphonix.
As JPMCC is the general partner of JPMCLP, JPMCC may be deemed to be the
beneficial owner of the Common Stock beneficially owned by JPMCLP.
As JPMCC is a wholly owned subsidiary of JPM, JPM may be deemed to be the
beneficial owner of the Common Stock beneficially owned by JPMCC.
The aggregate percentage of Common Stock reported in Item 13 of the Cover
Page is based upon the 19,685,040 shares of Common Stock outstanding as of
November 10, 2000, as represented by Symphonix in the Purchase Agreement.
(b) See Cover Pages, Items 7 through 10. JPMCLP is the direct
beneficial owner of 2,460,630 shares of Common Stock.
(c) Except as described in Item 4 hereof, JPMCLP has not during the
past 60 days, engaged in any transactions in the Common Stock.
(d) Not applicable.
(e) Not applicable
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Item 6. Contracts, Arrangements, Understandings or Relationships with Respect
to Securities of the Issuer.
None of the Reporting Persons have any contracts, arrangements, understandings
or relationships with Symphonix or with any other person with respect
specifically to the securities of Symphonix, except as set forth below.
The description of the Purchase Agreement set forth in Item 4 hereof is hereby
incorporated by reference. As described in Item 4, JPMCLP purchased 2,460,630
shares of Common Stock pursuant to the Purchase Agreement. JPMCLP has the right
to maintain its percentage interests in the total number of outstanding shares
of Common Stock of Symphonix in the event of future sales by Symphonix of
additional shares of securities from Symphonix under the terms specified in the
Purchase Agreement.
<PAGE>
CUSIP No. 871951 10 SCHEDULE 13D Page 8 of 8 Pages
In addition, in the event that the market price of Symphonix declines, Symphonix
may be required to issue additional shares of Common Stock to investors,
including JPMCLP, at no additional cost to those investors pursuant to a
purchase price adjustment. The purchase price adjustment allows the investors,
at any time until November 10, 2002, to calculate an adjusted per share purchase
price equal to the average closing market price of the common stock as reported
on the Nasdaq National Market for the thirty-three (33) consecutive trading days
immediately preceding the date of the adjustment. Those investors who desire to
participate in this purchase price adjustment will receive additional shares of
common stock equal to the difference between the number of shares which each
investor could have purchased based on the adjusted per share purchase price at
the investor's original investment amount and the number of shares originally
purchased. Each investor may participate in a purchase price adjustment only
once during the two-year period. A possible consequence of the investors' right
to adjust their purchase price is that the investors could, in the aggregate,
control a majority of the voting power of Symphonix.
The description contained in this Item 6 of the Purchase Agreement is qualified
in its entirety by reference to the full text of the Purchase Agreement which is
incorporated by reference herein and is filed as Exhibit A hereto.
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Item 7. Material to be Filed as Exhibits.
The following document is filed as an exhibit to this statement:
Exhibit A: Common Stock Purchase Agreement dated September 18, 2000, among
Symphonix and certain investors, including JPMCLP (incorporated by reference to
Exhibit 10.1 of Symphonix's current report on Form 8-K filed November 2, 2000).
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<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.
J.P. MORGAN & CO. INCORPORATED
November 14, 2000
By: /s/ Travis F. Epes
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Name: Travis F. Epes
Title: Managing Director
J.P. MORGAN CAPITAL CORPORATION
November 14, 2000
By: /s/ Simon Moore
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Name: Simon Moore
Title: Vice President
J.P. MORGAN CAPITAL, L.P.
November 14, 2000
By: /s/ Martin Friedman
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Name: Martin Friedman
Title: Vice President
<PAGE>
SCHEDULE A
J.P. Morgan & Co., Incorporated 60 Wall Street, New York, NY 10260-0060
Douglas A. Warner III; Chairman and President of J.P. Morgan & Co.
Incorporated and Morgan Guaranty Trust Company; and Director
Paul A. Allaire; Director
Riley P. Bechtel; Director
Lawrence A. Bossidy; Director
Martin Feldstein; Director
Ellen V. Futter; Director
Hannah H. Gray; Director
Walter A. Gubert; Vice Chairman and Director; Italian citizen
James R. Houghton; Director
James L. Ketelsen; Director
John A. Krol; Director
Michael E. Patterson; Vice Chairman and Director
Lee R. Raymond; Director
Lloyd D. Ward; Director
Douglas C. Yearley; Director
Peter D. Hancock; Chief Financial Officer
Thomas B. Ketchum; Chief Administrative Officer
Rachel F. Robbins; General Counsel and Secretary
David H. Sidwell; Controller of J.P. Morgan & Co. Incorporated and Morgan
Guaranty Trust Company of New York
<PAGE>
J.P. Morgan Capital Corporation; 60 Wall Street, New York, NY 10260-0060
John A. Mayer, Jr.; President; Chief Executive Officer and Director
Thomas B. Ketchum; Director
Clayton S. Rose; Director
Ramon de Oliviera; Director; French Citizen
Steven Skoczylas; Chief Financial Officer and Director
J. Edmund Colloton; Vice President and Chief Operating Officer
Margaret A. Conklin; Vice President and Chief Legal Officer
James P. Marriott; Vice President and Secretary
J.P. Morgan Capital, L.P. 60 Wall Street, New York, NY 10260-0060
J.P. Morgan Capital Corporation, General Partner
Attention. Intentional misstatements or omissions of fact constitute federal
criminal violations (see 18 U.S.C. 1001).
