UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
SCHEDULE 13D
Under the Securities Exchange Act of 1934
AMENDMENT NO. 1
EXECUTONE INFORMATION SYSTEMS, INC.
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(Name of issuer)
COMMON STOCK
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(Title of class of securities)
301607107
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(CUSIP number)
Scott A. Kaniewski Robert H. Friedman, Esq.
Watermark Investments Limited, LLC Olshan Grundmam Frome Rosenzweig
77 West Wacker Drive, Suite 4120 & Wolosky LLP
Chicago, Illinois 60601 505 Park Avenue
(312) 920-1570 New York, New York 10022
(212) 753-7200
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(Name, address and telephone number of person
authorized to receive notices and communications)
April 21, 1999
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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 which 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 o.
Check the following box if a fee is being paid with the statement o. (A fee is
not required only if the reporting person: (1) has a previous statement on file
reporting beneficial ownership of more than five percent of the class of
securities described in Item 1; and (2) has filed no amendment subsequent
thereto reporting beneficial ownership of five percent or less of such class.)
(See Rule 13d-7).
Note. Six copies of this statement, including all exhibits, should be filed with
the Commission. See Rule 13d-1(a) for other parties to whom copies are to be
sent.
*The remainder of this cover page shall be filled out for a reporting person's
initial filing on this form with respect to the subject class of securities, and
for any subsequent amendment containing information which would alter
disclosures provided in a prior cover page.
The information required on the remainder of this cover page shall not be deemed
to be "filed" for the purpose of Section 18 of the Securities Exchange Act of
1934 ("Act") or otherwise subject to the liabilities of that section of the Act
but shall be subject to all other provisions of the Act (however, see the
Notes).
<PAGE>
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CUSIP No. 301607107 13D Page 2 of 7 Pages
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================================================================================
1 NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
Watertone Holdings, L.P.
06-1453057
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2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) / /
(b) / /
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3 SEC USE ONLY
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4 SOURCE OF FUNDS*
OO(1)
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5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED
PURSUANT TO ITEMS 2(d) OR 2(e) / /
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6 CITIZENSHIP OR PLACE OR ORGANIZATION
Delaware
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NUMBER OF 7 SOLE VOTING POWER
SHARES
BENEFICIALLY 50,000(2)
OWNED BY -------------------------------------------------------------
EACH
REPORTING
PERSON WITH
8 SHARED VOTING POWER
Not Applicable
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9 SOLE DISPOSITIVE POWER
50,000(2)
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10 SHARED DISPOSITIVE POWER
Not Applicable
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11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING
PERSON
50,000(2)
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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)
Less than 1%
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14 TYPE OF REPORTING PERSON*
PN
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*SEE INSTRUCTIONS BEFORE FILLING OUT!
(1) Watertone Holdings LP ("Watertone") was issued shares of Series A
Cumulative Convertible Preferred Stock and Series B Cumulative
Convertible Preferred Stock by the Issuer in exchange for Watertone's
interest in Unistar Gaming Corp. These preferred shares were converted
into 8,220,378 shares of the Issuer's common stock.
(2) All but 50,000 of Watertone's shares were subsequently distributed to
Watertone's equity holders in a distribution. Watertone has retained
ownership of 50,000 shares of the Issuer's common stock.
<PAGE>
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CUSIP No. 301607107 13D Page 3 of 7 Pages
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1 NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
Watermark Investments Limited, LLC
65-0762460
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2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) / /
(b) / /
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3 SEC USE ONLY
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4 SOURCE OF FUNDS*
OO(1)
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5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED
PURSUANT TO ITEMS 2(d) OR 2(e) / /
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6 CITIZENSHIP OR PLACE OR ORGANIZATION
Delaware
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NUMBER OF 7 SOLE VOTING POWER
SHARES
BENEFICIALLY 125,000(2)
OWNED BY -------------------------------------------------------------
EACH
REPORTING
PERSON WITH
8 SHARED VOTING POWER
Not Applicable
-------------------------------------------------------------
9 SOLE DISPOSITIVE POWER
125,000(2)
-------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
Not Applicable
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11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING
PERSON
125,000(2)
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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)
Less than 1%
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14 TYPE OF REPORTING PERSON*
OO(3)
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*SEE INSTRUCTIONS BEFORE FILLING OUT!
(1) Watertone was issued shares of Series A Cumulative Convertible
Preferred Stock and Series B Cumulative Convertible Preferred Stock by
the Issuer in exchange for Watertone's interest in Unistar Gaming Corp.
These preferred shares were converted by Watertone into 8,220,378
shares of the Issuer's common stock. All but 50,000 of these shares
were subsequently distributed to Watertone's equity holders in a
distribution. Watertone has retained ownership of 50,000 shares of the
Issuer's common stock and Watermark received 75,000 shares of the
Issuer's common stock in the distribution.
(2) Watermark Investments Limited, LLC ("Watermark") is the general partner
of Watertone. Consequently, Watermark is deemed to beneficially own the
50,000 shares of the Issuer's common stock held by Watertone as well as
the 75,000 shares Watermark holds directly.
(3) Watermark is a Delaware limited liability Company.
<PAGE>
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CUSIP No. 301607107 13D Page 4 of 7 Pages
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1 NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
Robert A. Berman
###-##-####
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2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) / /
(b) / /
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3 SEC USE ONLY
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4 SOURCE OF FUNDS*
OO(1)
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5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED
PURSUANT TO ITEMS 2(d) OR 2(e) / /
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6 CITIZENSHIP OR PLACE OR ORGANIZATION
United States Citizen
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NUMBER OF 7 SOLE VOTING POWER
SHARES
BENEFICIALLY 1,371,192(2)
OWNED BY
EACH
REPORTING
PERSON WITH
-------------------------------------------------------------
8 SHARED VOTING POWER
Not Applicable
-------------------------------------------------------------
9 SOLE DISPOSITIVE POWER
1,371,192(2)
-------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
Not Applicable
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11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING
PERSON
1,371,192(2)
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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)
2.2%
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14 TYPE OF REPORTING PERSON*
IN
================================================================================
*SEE INSTRUCTIONS BEFORE FILLING OUT!
(1) Watertone was issued shares of Series A Cumulative Convertible
Preferred Stock and Series B Cumulative Convertible Preferred Stock by
the Issuer in exchange for Watertone's interest in Unistar Gaming Corp.
These preferred shares were converted into 8,220,378 shares of the
Issuer's common stock. All but 50,000 of these shares were subsequently
distributed to Watertone's equity holders in a distribution. Watertone
retained ownership of 50,000 shares of the Issuer's common stock and
Mr. Berman received 1,296,192 shares of the Issuer's common stock in
the distribution.
(2) Mr. Berman is the sole manager of Watermark, the general partner of
Watertone. Consequently, Mr. Berman is deemed to beneficially own the
50,000 shares of the Issuer's common stock held by Watertone, the
75,000 shares held by Watermark as well as the 1,246,192 shares Mr.
Berman holds directly.
<PAGE>
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CUSIP No. 301607107 13D Page 5 of 7 Pages
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This Amendment No. 1 amends the Schedule 13D, dated April 6,
1999 (collectively referred to as the "Schedule 13D") filed by Watertone
Holdings LP, Watermark Investments Limited LLC and Robert A. Berman. Except as
specifically amended hereby, the Schedule 13D remains in full force and effect.
Defined terms used herein shall have the meaning specified in
the Schedule 13D, except as otherwise provided herein.
Item 4 of the Schedule 13D is hereby amended to add the
following:
Item 4. Purpose of Transaction.
-----------------------
On April 15, 1999 Watertone disposed of 35,000 shares of
Executone common stock in an open market transaction at a sale price of $8.84
per share. On April 16, 1999 Watertone disposed of 465,000 shares of Executone
common stock in an open market transaction at a sale price of $9.57 per share.
On April 21, 1999 Watertone distributed all but 50,000 of its
shares of Executone common stock in a distribution to its equity holders. As a
result, Watertone now holds only 50,000 shares of Executone common stock.
Item 5 of the Schedule 13D is hereby amended in its entirety
to read:
Item 5. Interest in Securities of the Issuer
------------------------------------
(a) As of the date hereof, Watertone holds 50,000 shares of
Executone common stock. Watermark is attributed beneficial ownership to the same
50,000 shares of Executone common stock. Additionally, Watermark directly holds
75,000 shares of Executone common stock it received in the distribution. Robert
A. Berman is also attributed beneficial ownership to the 50,000 shares of
Executone common stock still held by Watertone as well as the 75,000 shares held
by Watermark. Additionally, Mr. Berman directly holds 1,246,192 shares of
Executone common stock he received in the distribution. Each of Watertone's and
Watermark's beneficial interest constitute less than 1% and Mr. Berman's
beneficial interest constitutes 2.0% of the shares of Executone common stock
outstanding as of the date hereof. As of the date hereof there were
approximately 63,187,165 shares of Executone common stock outstanding.
(b) Robert Berman, as the sole manager of Watermark,
Watertone's general partner, has sole power to vote and to dispose of all of the
shares of Executone common stock referred to in paragraph (a) above.
<PAGE>
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CUSIP No. 301607107 13D Page 6 of 7 Pages
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(c) See "Item 3. Source and Amount of Funds and Other
Consideration" above for information as to shares of Executone common stock
recently acquired or disposed of by Watertone. Except as disclosed therein,
Watertone has not acquired, within the past 60 days, any shares of Executone
common stock.
(d) No person, other than Watertone, Watermark or Robert
Berman, has the right to receive or the power to direct the receipt of dividends
from, or the proceeds from the sale of, the shares of Executone common stock
that are the subject of this Schedule 13D.
(e) As of April 21, 1999, Watertone, Watermark and Robert
Berman all ceased being beneficial owners of more than 5% of the outstanding
common stock of Executone.
<PAGE>
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CUSIP No. 301607107 13D Page 7 of 7 Pages
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SIGNATURES
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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.
Dated: April 21, 1999
WATERTONE HOLDINGS LP
By: WATERMARK INVESTMENTS
LIMITED, LLC, its General
Partner
By: /s/ Robert A. Berman
------------------------
Robert Berman
Manager
WATERMARK INVESTMENTS LIMITED,
LLC
By: /s/ Robert A. Berman
---------------------------------
Robert Berman
Manager
/s/ Robert A. Berman
------------------------------------
Robert Berman, Individually
