As filed with the Securities and Exchange Commission on December 7, 2000
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
SCHEDULE 13D
(RULE 13D-101)
INFORMATION TO BE INCLUDED IN STATEMENTS FILED
PURSUANT TO RULE 13D-1 AND AMENDMENTS THERETO
FILED PURSUANT TO RULE 13D-2(a)
(AMENDMENT NO. 2)
UNDER THE SECURITIES EXCHANGE ACT OF 1934
NorthPoint Communications Group, Inc.
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(Name of Issuer)
Common Stock, Par Value $0.001 per Share
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(Title of Class of Securities)
666610 20 9
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(CUSIP Number)
Marianne Drost, Esq.
Verizon Communications Inc.
1095 Avenue of the Americas
New York, NY 10036
(212) 395-1783
With a copy to:
Martha E. McGarry, Esq.
Skadden, Arps, Slate, Meagher & Flom LLP
Four Times Square
New York, New York 10036
(212) 735-3000
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(Name, Address and Telephone Number of Person Authorized
to Receive Notices and Communications)
November 29, 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(e), 13d-1(f) or 13d-1(g), check
the following box: o
CUSIP NO. 666610 20 9 13D PAGE 2 OF 12 PAGES
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1 NAMES OF REPORTING PERSONS
Verizon Communications Inc.*
(I.R.S. IDENTIFICATION NO. 232259884)
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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 OF LEGAL PROCEEDINGS IS REQUIRED
PURSUANT TO ITEMS 2(d) or 2(e)
N/A
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6 CITIZENSHIP OR PLACE OF ORGANIZATION
Delaware
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7 SOLE VOTING POWER
11,436,207**
NUMBER OF ----------------------------------------------
SHARES 8 SHARED VOTING POWER
BENEFICIALLY N/A
OWNED BY ----------------------------------------------
EACH 9 SOLE DISPOSITIVE POWER
REPORTING 11,436,207
PERSON ----------------------------------------------
WITH 10 SHARED DISPOSITIVE POWER
N/A
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11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
11,436,207
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12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN
SHARES
N/A
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13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
7.9%***
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14 TYPE OF REPORTING PERSON
CO
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*SEE INSTRUCTIONS BEFORE FILLING OUT!
* Verizon Investments Inc. is a wholly-owned subsidiary of Verizon
Communications Inc. ("Verizon Communications") (formerly Bell
Atlantic Corporation). Verizon Investments Inc. owns 153,473.9 shares
of NorthPoint Communications Group, Inc.'s 9% Convertible Preferred
Stock (the "Preferred Stock"). Verizon Communications does not have
any interest in shares of NorthPoint Communications Group, Inc.'s
capital stock independent of its ownership interest in Verizon
Investments Inc.
** The number of shares of Common Stock reported is determined by
dividing the aggregate purchase price for the Preferred Stock of $150
million plus accrued dividends by the conversion price of $13.42.
The number of shares is subject to increase over time due to the
accrual of pay-in-kind dividends. Verizon Investments Inc. will not
have voting rights until the requisite govern ment approvals are
obtained.
*** The 7.9% is determined by dividing the 11,436,207 shares of Common
Stock issuable upon conversion of the the Preferred Stock described
in Sections 7 and 11 above by the sum of the 133,321,089 shares of
Common Stock outstanding as of September 30, 2000 plus the number of
shares of Common Stock issuable with respect to the Preferred Stock.
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1 NAMES OF REPORTING PERSONS
Verizon Advanced Data Inc.* (I.R.S. IDENTIFICATION NO. 541885544)
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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
N/A
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5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED
PURSUANT TO ITEMS 2(d) or 2(e)
N/A
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6 CITIZENSHIP OR PLACE OF ORGANIZATION
Delaware
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7 SOLE VOTING POWER
N/A
NUMBER OF ----------------------------------------------
SHARES 8 SHARED VOTING POWER
BENEFICIALLY N/A
OWNED BY ----------------------------------------------
EACH 9 SOLE DISPOSITIVE POWER
REPORTING N/A
PERSON ----------------------------------------------
WITH 10 SHARED DISPOSITIVE POWER
N/A
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11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
N/A
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12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN
SHARES
N/A
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13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
N/A
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14 TYPE OF REPORTING PERSON
CO
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*SEE INSTRUCTIONS BEFORE FILLING OUT!
* Due to the termination of the Voting Agreements (as defined in Item 4
below), Verizon Advanced Data Inc. has no beneficial ownership of
NorthPoint Communications Group, Inc.'s common stock.
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1 NAMES OF REPORTING PERSONS
Verizon Ventures I Inc.* (I.R.S. IDENTIFICATION NO. 23-3052545)
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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
N/A
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5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED
PURSUANT TO ITEMS 2(d) or 2(e)
N/A
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6 CITIZENSHIP OR PLACE OF ORGANIZATION
Delaware
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7 SOLE VOTING POWER
N/A
NUMBER OF ----------------------------------------------
SHARES 8 SHARED VOTING POWER
BENEFICIALLY N/A
OWNED BY ----------------------------------------------
EACH 9 SOLE DISPOSITIVE POWER
REPORTING N/A
PERSON ----------------------------------------------
WITH 10 SHARED DISPOSITIVE POWER
N/A
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11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
N/A
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12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN
SHARES
N/A
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13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
N/A
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14 TYPE OF REPORTING PERSON
CO
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*SEE INSTRUCTIONS BEFORE FILLING OUT!
* Due to the termination of the Voting Agreements, Verizon Ventures I
Inc. has no beneficial ownership of NorthPoint Communications Group,
Inc.'s common stock.
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1 NAMES OF REPORTING PERSONS
Verizon Investments Inc. (I.R.S. IDENTIFICATION NO. 133191789)
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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 OF LEGAL PROCEEDINGS IS REQUIRED
PURSUANT TO ITEMS 2(d) or 2(e)
N/A
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6 CITIZENSHIP OR PLACE OF ORGANIZATION
Delaware
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7 SOLE VOTING POWER
11,436,207*
NUMBER OF ----------------------------------------------
SHARES 8 SHARED VOTING POWER
BENEFICIALLY N/A
OWNED BY ----------------------------------------------
EACH 9 SOLE DISPOSITIVE POWER
REPORTING 11,436,207
PERSON ----------------------------------------------
WITH 10 SHARED DISPOSITIVE POWER
N/A
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11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
11,436,207
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12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN
SHARES
N/A
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13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
7.9%**
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14 TYPE OF REPORTING PERSON
CO
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*SEE INSTRUCTIONS BEFORE FILLING OUT!
* The number of shares of Common Stock reported is determined by
dividing the aggregate purchase price for the Preferred Stock of $150
million plus accrued dividends by the conversion price of $13.42.
The number of shares is subject to increase over time due to the
accrual of pay-in-kind dividends. Verizon Investments Inc. will not
have voting rights until the requisite government approvals are
obtained.
** The 7.9% is determined by dividing the 11,436,207 shares of Common
Stock issuable upon conversion of the the Preferred Stock described
in Sections 7 and 11 above by the sum of the 133,321,089 shares of
Common Stock outstanding as of September 30, 2000 plus the number of
shares of Common Stock issuable with respect to the Preferred Stock.
This Amendment No. 2 to Schedule 13D (this "Amendment") is
being filed pursuant to Rule 13d-2(a) of the Rules and Regulations under
the Securities Exchange Act of 1934, as amended (the "Act"), by Verizon
Communications Inc., a Delaware corporation ("Verizon Communications"),
Verizon Advanced Data Inc., a Delaware corporation, Verizon Ventures I
Inc., a Delaware corporation, and Verizon Investments Inc., a Delaware
corporation, with respect to the common stock, par value $.001 per share,
of NorthPoint Communications Group, Inc., a Delaware corporation (the
"Issuer"). This Amendment amends the Schedule 13D filed by Verizon
Communications, Verizon Advanced Data Inc. and Verizon Ventures I Inc. on
August 17, 2000, as amended on September 7, 2000.
The Schedule 13D previously filed is hereby amended by the
following information:
ITEM 1. Security and Issuer.
This Statement on Schedule 13D relates to the common stock, par
value $0.001 per share (the "Common Stock"), of the Issuer issuable upon
conversion of the 150,000 shares of 9% Convertible Preferred Stock of the
Issuer purchased by Verizon Investments Inc. on September 5, 2000 (the
"Preferred Stock").
Due to the termination of the Merger Agreement (defined below)
by Verizon Communications on November 29, 2000 as described in Item 4
below, the dividend accrual rate of the Preferred Stock increased from 9%
to 13% per annum on the date of such termination and will continue to
increase by an additional 0.5% every three months commencing December 5,
2000, subject to a maximum annual accrual rate of 18%.
ITEM 4. Purpose of Transaction.
On November 29, 2000, Verizon Communications terminated the
Agreement and Plan of Merger, dated as of August 7, 2000 (the "Merger
Agreement"), by and among Verizon Communications, the Issuer, Verizon
Ventures I Inc. and Verizon Ventures II Inc. as permitted under the Merger
Agreement due to the occurrence of a Material Adverse Effect (as defined in
the Merger Agreement) on the Issuer. Upon termination of the Merger
Agreement, the covenants and agreements contained in the Voting and Lock-up
Agreements, each dated as of August 7, 2000 (the "Voting Agreements"), with
several principal stockholders and officers of the Issuer terminated.
ITEM 5. Interest in Securities of the Issuer.
(a) As of the date hereof, none of the Reporting Persons owns
any shares of Common Stock. The aggregate number of shares of the Common
Stock which Verizon Communications may be deemed to have beneficial
ownership of under Rule 13d-3 of the Act, assuming conversion of the
Preferred Stock into Common Stock, is 11,436,207. This constitutes
approximately 7.9% of the effective number of outstanding shares of Common
Stock (based on the number of shares of Common Stock outstanding as of
September 30, 2000 plus the number of shares of Common Stock issuable with
respect to the Preferred Stock).
(b) Verizon Communications, indirectly through Verizon
Investments Inc., possesses the sole power to dispose of or direct the
disposition of the Preferred Stock. Assuming the receipt of the requisite
government approvals, Verizon Communications, indirectly through Verizon
Investments Inc., possesses the sole power to vote or direct the vote of
the Preferred Stock. The certificate of designation which established the
terms of the Preferred Stock provides, among other things, that upon the
expiration or termination of the applicable waiting period under the
Hart-Scott Rodino Antitrust Improvements Act of 1976, as amended, and the
rules and regulations thereunder and the receipt of any required approvals
under the Communications Act of 1934, as amended, the rules and regulations
thereunder and the policies of the Federal Communications Commission, each
holder of the Preferred Stock will have full voting rights and powers, and
will be entitled to vote on all matters put to a vote or consent of
stockholders of the Issuer, voting together with the holders of the Common
Stock as one class, with each holder of shares of the Preferred Stock
having the number of votes equal to the number of shares of Common Stock
into which such shares of the Preferred Stock could be converted. As of
December 5, 2000, on an as converted basis, the Preferred Stock represents
11,436,207 shares of Common Stock or 7.9% of the effective number of
outstanding shares of Common Stock (based on the number of shares of Common
Stock outstanding as of September 30, 2000 plus the number of shares of
Common Stock issuable with respect to the Preferred Stock). Due to the
termination of the Merger Agreement, Verizon Communications is no longer
required to receive the written consent of the Issuer prior to transferring
the Preferred Stock.
Due to the termination of the Merger Agreement, all voting
rights granted by the Voting Agreements have terminated.
SIGNATURES
After reasonable inquiry and to the best of each of the
undersigned's knowledge and belief, the undersigned certifies that the
information set forth in this statement is true, complete and correct.
Dated: December 7, 2000
VERIZON COMMUNICATIONS, INC.
By: /s/ Lawrence T. Babbio, Jr.
___________________________________
Name: Lawrence T. Babbio, Jr.
Title: President and Chief Operating
Officer
VERIZON ADVANCED DATA INC.
VERIZON VENTURES I INC.
By: /s/ Diane K. Ferber
___________________________________
Name: Diane K. Ferber
Title: Vice President, Chief Financial
Officer and Treasurer
VERIZON INVESTMENTS INC.
By: /s/ Janet M. Garrity
___________________________________
Name: Janet M. Garrity
Title: President and Treasurer
