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OMB APPROVAL
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OMB Number 3235-0145
Expires: October 31, 1994
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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
SCHEDULE 13D
UNDER THE SECURITIES EXCHANGE ACT OF 1934
(AMENDMENT NO. 2)*
KINDERCARE LEARNING CENTERS, INC.
- --------------------------------------------------------------------------------
(Name of Issuer)
Common Stock, par value $0.01 per share
- --------------------------------------------------------------------------------
(Title of Class of Securities)
494521 20 6
----------------
(CUSIP Number)
Michael E. Cahill, Esq. (213) 244-0000
Managing Director & General Counsel 865 South Figueroa Street, Suite 1800
The TCW Group, Inc. Los Angeles, California 90017
- --------------------------------------------------------------------------------
(Name, Address and Telephone Number of Person Authorized
to Receive Notices and Communications)
April 16, 1996
- --------------------------------------------------------------------------------
(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 / /.
Check the following box if a fee is being paid with the statement / /.
(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>
<TABLE>
<CAPTION>
SCHEDULE 13D
CUSIP NO. 494521 20 6 PAGE 2 OF 22 PAGES
<S> <C>
- ------------------------------------------------------------------------------------------------------------------------------------
1 NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
The TCW Group, Inc.
- ------------------------------------------------------------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a)/ /
(b)/X/
- ------------------------------------------------------------------------------------------------------------------------------------
3 SEC USE ONLY
- ------------------------------------------------------------------------------------------------------------------------------------
4 SOURCE OF FUNDS*
Not applicable.
- ------------------------------------------------------------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS 2(d) OR 2(e) / /
- ------------------------------------------------------------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
Nevada
- ------------------------------------------------------------------------------------------------------------------------------------
NUMBER OF 7 SOLE VOTING POWER
SHARES
BENEFICIALLY 10,764,016**
OWNED BY -----------------------------------------------------------------------------------------------------------------
EACH 8 SHARED VOTING POWER
REPORTING
PERSON WITH -0-
------------------------------------------------------------------------------------------------------------------
9 SOLE DISPOSITIVE POWER
10,764,016**
------------------------------------------------------------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
-0-
- ------------------------------------------------------------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
10,764,016**
- ------------------------------------------------------------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES* / /
- ------------------------------------------------------------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
52.6%
- ------------------------------------------------------------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
HC, CO
- ------------------------------------------------------------------------------------------------------------------------------------
*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.
** includes 958,683 shares issuable upon exercise of warrants
<PAGE>
SCHEDULE 13D
CUSIP NO. 494521 20 6 PAGE 3 OF 22 PAGES
- ------------------------------------------------------------------------------------------------------------------------------------
1 NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
Trust Company of the West
- ------------------------------------------------------------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a)/ /
(b)/X/
- ------------------------------------------------------------------------------------------------------------------------------------
3 SEC USE ONLY
- ------------------------------------------------------------------------------------------------------------------------------------
4 SOURCE OF FUNDS*
Not applicable.
- ------------------------------------------------------------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS 2(d) OR 2(e) / /
- ------------------------------------------------------------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
California
- ------------------------------------------------------------------------------------------------------------------------------------
NUMBER OF 7 SOLE VOTING POWER
SHARES
BENEFICIALLY 1,149,264
OWNED BY ------------------------------------------------------------------------------------------------------------------
EACH 8 SHARED VOTING POWER
REPORTING
PERSON WITH -0-
------------------------------------------------------------------------------------------------------------------
9 SOLE DISPOSITIVE POWER
1,149,264
------------------------------------------------------------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
-0-
- ------------------------------------------------------------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
1,149,264
- ------------------------------------------------------------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES* / /
- ------------------------------------------------------------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
5.9%
- ------------------------------------------------------------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
CO
- ------------------------------------------------------------------------------------------------------------------------------------
*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>
SCHEDULE 13D
CUSIP NO. 494521 20 6 PAGE 4 OF 22 PAGES
- ------------------------------------------------------------------------------------------------------------------------------------
1 NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
TCW Asset Management Company
- ------------------------------------------------------------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a)/ /
(b)/X/
- ------------------------------------------------------------------------------------------------------------------------------------
3 SEC USE ONLY
- ------------------------------------------------------------------------------------------------------------------------------------
4 SOURCE OF FUNDS*
Not applicable.
- ------------------------------------------------------------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS 2(d) OR 2(e) / /
- ------------------------------------------------------------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
California
- ------------------------------------------------------------------------------------------------------------------------------------
NUMBER OF 7 SOLE VOTING POWER
SHARES
BENEFICIALLY 9,614,752**
OWNED BY ------------------------------------------------------------------------------------------------------------------
EACH 8 SHARED VOTING POWER
REPORTING
PERSON WITH -0-
------------------------------------------------------------------------------------------------------------------
9 SOLE DISPOSITIVE POWER
9,614,752**
------------------------------------------------------------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
-0-
- ------------------------------------------------------------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
9,614,752**
- ------------------------------------------------------------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES* / /
- ------------------------------------------------------------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
47.0%
- ------------------------------------------------------------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
CO, IA
- ------------------------------------------------------------------------------------------------------------------------------------
*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.
** includes 958,683 shares issuable upon exercise of warrants
<PAGE>
SCHEDULE 13D
CUSIP NO. 494521 20 6 PAGE 5 OF 22 PAGES
- ------------------------------------------------------------------------------------------------------------------------------------
1 NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
TCW Special Credits
- ------------------------------------------------------------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a)/ /
(b)/X/
- ------------------------------------------------------------------------------------------------------------------------------------
3 SEC USE ONLY
- ------------------------------------------------------------------------------------------------------------------------------------
4 SOURCE OF FUNDS*
Not applicable.
- ------------------------------------------------------------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS 2(d) OR 2(e) / /
- ------------------------------------------------------------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
California
- ------------------------------------------------------------------------------------------------------------------------------------
NUMBER OF 7 SOLE VOTING POWER
SHARES
BENEFICIALLY 6,045,831
OWNED BY ------------------------------------------------------------------------------------------------------------------
EACH 8 SHARED VOTING POWER
REPORTING
PERSON WITH -0-
------------------------------------------------------------------------------------------------------------------
9 SOLE DISPOSITIVE POWER
6,045,831
------------------------------------------------------------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
-0-
- ------------------------------------------------------------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
6,045,831
- ------------------------------------------------------------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES* / /
- ------------------------------------------------------------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
31.0%
- ------------------------------------------------------------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
PN, IA
- ------------------------------------------------------------------------------------------------------------------------------------
*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>
SCHEDULE 13D
CUSIP NO. 494521 20 6 PAGE 6 OF 22 PAGES
- ------------------------------------------------------------------------------------------------------------------------------------
1 NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
Oaktree Capital Management, LLC
- ------------------------------------------------------------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a)/ /
(b)/X/
- ------------------------------------------------------------------------------------------------------------------------------------
3 SEC USE ONLY
- ------------------------------------------------------------------------------------------------------------------------------------
4 SOURCE OF FUNDS*
Not Applicable
- ------------------------------------------------------------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS 2(d) OR 2(e) / /
- ------------------------------------------------------------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
California
- ------------------------------------------------------------------------------------------------------------------------------------
NUMBER OF 7 SOLE VOTING POWER
SHARES
BENEFICIALLY 111,473
OWNED BY ------------------------------------------------------------------------------------------------------------------
EACH 8 SHARED VOTING POWER
REPORTING
PERSON WITH 3,568,921**
------------------------------------------------------------------------------------------------------------------
9 SOLE DISPOSITIVE POWER
111,473
------------------------------------------------------------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
3,568,921**
- ------------------------------------------------------------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
3,680,394**
- ------------------------------------------------------------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES* / /
- ------------------------------------------------------------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
18.0%
- ------------------------------------------------------------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
IA; CO
- ------------------------------------------------------------------------------------------------------------------------------------
*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.
** includes 958,683 shares issuable upon exercise of warrants
<PAGE>
SCHEDULE 13D
CUSIP NO. 494521 20 6 PAGE 7 OF 22 PAGES
- ------------------------------------------------------------------------------------------------------------------------------------
1 NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
TCW Special Credits Fund V - The Principal Fund
- ------------------------------------------------------------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a)/ /
(b)/X/
- ------------------------------------------------------------------------------------------------------------------------------------
3 SEC USE ONLY
- ------------------------------------------------------------------------------------------------------------------------------------
4 SOURCE OF FUNDS*
WC
- ------------------------------------------------------------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS 2(d) OR 2(e) / /
- ------------------------------------------------------------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
California
- ------------------------------------------------------------------------------------------------------------------------------------
NUMBER OF 7 SOLE VOTING POWER
SHARES
BENEFICIALLY 3,568,921**
OWNED BY ------------------------------------------------------------------------------------------------------------------
EACH 8 SHARED VOTING POWER
REPORTING
PERSON WITH -0-
------------------------------------------------------------------------------------------------------------------
9 SOLE DISPOSITIVE POWER
3,568,921**
------------------------------------------------------------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
-0-
- ------------------------------------------------------------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
3,568,921**
- ------------------------------------------------------------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES* / /
- ------------------------------------------------------------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
17.5%
- ------------------------------------------------------------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
PN
- ------------------------------------------------------------------------------------------------------------------------------------
*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.
** includes 958,683 shares issuable upon exercise of warrants
<PAGE>
SCHEDULE 13D
CUSIP NO. 494521 20 6 PAGE 8 OF 22 PAGES
- ------------------------------------------------------------------------------------------------------------------------------------
1 NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
TCW Special Credits Fund II
- ------------------------------------------------------------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a)/ /
(b)/X/
- ------------------------------------------------------------------------------------------------------------------------------------
3 SEC USE ONLY
- ------------------------------------------------------------------------------------------------------------------------------------
4 SOURCE OF FUNDS*
Not Applicable
- ------------------------------------------------------------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS 2(d) OR 2(e) / /
- ------------------------------------------------------------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
California
- ------------------------------------------------------------------------------------------------------------------------------------
NUMBER OF 7 SOLE VOTING POWER
SHARES
BENEFICIALLY 759,767
OWNED BY ------------------------------------------------------------------------------------------------------------------
EACH 8 SHARED VOTING POWER
REPORTING
PERSON WITH -0-
------------------------------------------------------------------------------------------------------------------
9 SOLE DISPOSITIVE POWER
759,767
- ------------------------------------------------------------------------------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
-0-
- ------------------------------------------------------------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
759,767
- ------------------------------------------------------------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES* / /
- ------------------------------------------------------------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
3.9%
- ------------------------------------------------------------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
PN
- ------------------------------------------------------------------------------------------------------------------------------------
*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>
SCHEDULE 13D
CUSIP NO. 494521 20 6 PAGE 9 OF 22 PAGES
- ------------------------------------------------------------------------------------------------------------------------------------
1 NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
TCW Special Credits Fund IIb
- ------------------------------------------------------------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a)/ /
(b)/X/
- ------------------------------------------------------------------------------------------------------------------------------------
3 SEC USE ONLY
- ------------------------------------------------------------------------------------------------------------------------------------
4 SOURCE OF FUNDS*
Not Applicable
- ------------------------------------------------------------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS 2(d) OR 2(e) / /
- ------------------------------------------------------------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
California
- ------------------------------------------------------------------------------------------------------------------------------------
NUMBER OF 7 SOLE VOTING POWER
SHARES
BENEFICIALLY 695,883
OWNED BY ------------------------------------------------------------------------------------------------------------------
EACH 8 SHARED VOTING POWER
REPORTING
PERSON WITH -0-
------------------------------------------------------------------------------------------------------------------
9 SOLE DISPOSITIVE POWER
695,883
------------------------------------------------------------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
-0-
- ------------------------------------------------------------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
695,883
- ------------------------------------------------------------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES* / /
- ------------------------------------------------------------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
3.6%
- ------------------------------------------------------------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
PN
- ------------------------------------------------------------------------------------------------------------------------------------
*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>
SCHEDULE 13D
CUSIP NO. 494521 20 6 PAGE 10 OF 22 PAGES
- ------------------------------------------------------------------------------------------------------------------------------------
1 NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
TCW Special Credits Fund III
- ------------------------------------------------------------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a)/ /
(b)/X/
- ------------------------------------------------------------------------------------------------------------------------------------
3 SEC USE ONLY
- ------------------------------------------------------------------------------------------------------------------------------------
4 SOURCE OF FUNDS*
Not Applicable
- ------------------------------------------------------------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS 2(d) OR 2(e) / /
- ------------------------------------------------------------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
California
- ------------------------------------------------------------------------------------------------------------------------------------
NUMBER OF 7 SOLE VOTING POWER
SHARES
BENEFICIALLY 2,462,032
OWNED BY ------------------------------------------------------------------------------------------------------------------
EACH 8 SHARED VOTING POWER
REPORTING
PERSON WITH -0-
------------------------------------------------------------------------------------------------------------------
9 SOLE DISPOSITIVE POWER
2,462,032
------------------------------------------------------------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
-0-
- ------------------------------------------------------------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
2,462,032
- ------------------------------------------------------------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES* / /
- ------------------------------------------------------------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
12.6%
- ------------------------------------------------------------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
PN
- ------------------------------------------------------------------------------------------------------------------------------------
*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>
SCHEDULE 13D
CUSIP NO. 494521 20 6 PAGE 11 OF 22 PAGES
- ------------------------------------------------------------------------------------------------------------------------------------
1 NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
TCW Special Credits Fund IIIb
- ------------------------------------------------------------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a)/ /
(b)/X/
- ------------------------------------------------------------------------------------------------------------------------------------
3 SEC USE ONLY
- ------------------------------------------------------------------------------------------------------------------------------------
4 SOURCE OF FUNDS*
Not Applicable
- ------------------------------------------------------------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS 2(d) OR 2(e) / /
- ------------------------------------------------------------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
California
- ------------------------------------------------------------------------------------------------------------------------------------
NUMBER OF 7 SOLE VOTING POWER
SHARES
BENEFICIALLY 1,008,198
OWNED BY ------------------------------------------------------------------------------------------------------------------
EACH 8 SHARED VOTING POWER
REPORTING
PERSON WITH -0-
------------------------------------------------------------------------------------------------------------------
9 SOLE DISPOSITIVE POWER
1,008,198
------------------------------------------------------------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
-0-
- ------------------------------------------------------------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
1,008,198
- ------------------------------------------------------------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES* / /
- ------------------------------------------------------------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
5.2%
- ------------------------------------------------------------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
PN
- ------------------------------------------------------------------------------------------------------------------------------------
*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>
SCHEDULE 13D
CUSIP NO. 494521 20 6 PAGE 12 OF 22 PAGES
- ------------------------------------------------------------------------------------------------------------------------------------
1 NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
TCW Special Credits Trust
- ------------------------------------------------------------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a)/ /
(b)/X/
- ------------------------------------------------------------------------------------------------------------------------------------
3 SEC USE ONLY
- ------------------------------------------------------------------------------------------------------------------------------------
4 SOURCE OF FUNDS*
Not Applicable
- ------------------------------------------------------------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS 2(d) OR 2(e) / /
- ------------------------------------------------------------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
California
- ------------------------------------------------------------------------------------------------------------------------------------
NUMBER OF 7 SOLE VOTING POWER
SHARES
BENEFICIALLY 747,159
OWNED BY ------------------------------------------------------------------------------------------------------------------
EACH 8 SHARED VOTING POWER
REPORTING
PERSON WITH -0-
------------------------------------------------------------------------------------------------------------------
9 SOLE DISPOSITIVE POWER
747,159
------------------------------------------------------------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
-0-
- ------------------------------------------------------------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
747,159
- ------------------------------------------------------------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES* / /
- ------------------------------------------------------------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
3.8%
- ------------------------------------------------------------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
OO
- ------------------------------------------------------------------------------------------------------------------------------------
*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>
SCHEDULE 13D
CUSIP NO. 494521 20 6 PAGE 13 OF 22 PAGES
- ------------------------------------------------------------------------------------------------------------------------------------
1 NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
TCW Special Credits Trust IIIb
- ------------------------------------------------------------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a)/ /
(b)/X/
- ------------------------------------------------------------------------------------------------------------------------------------
3 SEC USE ONLY
- -----------------------------------------------------------------------------------------------------------------------------------
4 SOURCE OF FUNDS*
Not Applicable
- ------------------------------------------------------------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS 2(d) OR 2(e) / /
- ------------------------------------------------------------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
California
- ------------------------------------------------------------------------------------------------------------------------------------
NUMBER OF 7 SOLE VOTING POWER
SHARES
BENEFICIALLY 402,105
OWNED BY ------------------------------------------------------------------------------------------------------------------
EACH 8 SHARED VOTING POWER
REPORTING
PERSON WITH -0-
------------------------------------------------------------------------------------------------------------------
9 SOLE DISPOSITIVE POWER
402,105
------------------------------------------------------------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
-0-
- ------------------------------------------------------------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
402,105
- ------------------------------------------------------------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES* / /
- ------------------------------------------------------------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
2.1%
- ------------------------------------------------------------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
OO
- ------------------------------------------------------------------------------------------------------------------------------------
*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.
</TABLE>
<PAGE>
ITEM 1. SECURITY AND ISSUER
This Statement relates to the Common Stock, par value $0.01 per share ("Common
Stock"), of Kindercare Learning Centers, Inc., a Delaware corporation (the
"Issuer"). The address of the principal executive office of the Issuer is 2400
Presidents Drive, Montgomery, Alabama 36116.
ITEM 2. IDENTITY AND BACKGROUND
This Statement is filed on behalf of
(1) The TCW Group, Inc., a Nevada corporation ("TCWG");
(2) Trust Company of the West, a California corporation and wholly-owned
subsidiary of TCWG ("TCW");
(3) TCW Asset Management Company, a California corporation and wholly-owned
subsidiary of TCWG ("TAMCO");
(4) TCW Special Credits, a California general partnership of which TAMCO is
the managing general partner ("Special Credits");
(5) Four California limited partnerships, TCW Special Credits Fund II, TCW
Special Credits Fund IIb, TCW Special Credits Fund III and TCW Special
Credits Fund IIIb (hereinafter referred to as the "Special Credits
Limited Partnerships") of which Special Credits is the general partner;
(6) TCW Special Credits Fund V, The Principal Fund, a California limited
partnership of which TAMCO is the general partner ("Principal Fund");
(7) Two California collective investment trusts, TCW Special Credits Trust
and TCW Special Credits Trust IIIb (hereinafter referred to as the
"Special Credits Trusts") of which TCW is the trustee;
(8) Oaktree Capital Management, LLC, a California limited liability company
("Oaktree"), manager of The Principal Fund pursuant to a subadvisory
agreement between TAMCO and Oaktree.
Special Credits, Special Credits Trusts and the Special Credits Limited
Partnerships are hereinafter collectively referred to as the "Special Credits
Entities." TCWG, TCW, TAMCO, the Special Credits Entities and The Principal
Fund are hereinafter collectively referred to as the "TCW Related Entities."
Special Credits is also the investment manager of third party accounts which
invest in similar securities as the Special Credit Entities (the "Special
Credits Accounts"), and Oaktree is also the investment manager of other third
party accounts which hold shares of the Issuer's Common Stock (the "Oaktree
Accounts").
TCWG is a holding company of entities involved in the principal business of
providing investment advice and management services. TCW is a trust company
which provides investment management services, including to the Special Credits
Trusts. TAMCO is an investment adviser and provides investment advice and
management services to institutional and individual investors, including The
Principal Fund. Special Credits provides investment advice and management
services to the Special Credits Limited Partnerships and Special Credits
Accounts. The Special Credits Limited Partnerships are investment partnerships
which invest in financially distressed entities. The Special Credits Trusts are
collective investment trusts which invest in financially distressed entities.
The Principal Fund is a limited partnership which invests in entities in which
there is a potential for The Principal Fund to exercise significant influence
over such entities. The address of the principal business and principal office
for the TCW Related Entities is 865 South Figueroa Street, Suite 1800, Los
Angeles, California 90017. Pursuant to a subadvisory agreement between TAMCO
and Oaktree Capital Management, LLC, a California limited liability company
("Oaktree"), The Principal Fund is managed by Oaktree, whose business address is
550 South Hope Street, Suite 2200, Los Angeles, California 90071. The principal
business of Oaktree is to provide investment advice and management services to
institutional and individual investors.
(A)-(C) & (F)
(I) The executive officers of TCWG are listed below. The principal business
address for each executive officer is 865 South Figueroa Street, Suite 1800, Los
Angeles, California, 90017. Each executive officer is a citizen of the United
States of America unless otherwise specified below:
14
<PAGE>
EXECUTIVE OFFICERS
- ------------------
Robert A. Day Chairman of the Board & Chief Executive Officer
Ernest O. Ellison Vice Chairman of the Board
Marc I. Stern President
Alvin R. Albe, Jr. Executive Vice President, Finance & Administration
Thomas E. Larkin, Jr. Executive Vice President & Group Managing Director
Michael E. Cahill Managing Director, General Counsel & Secretary
David K. Sandie Managing Director, Chief Financial Officer & Assistant
Secretary
Schedule I attached hereto and incorporated herein sets forth with respect to
each director of TCWG his name, residence or business address, citizenship,
present principal occupation or employment and the name, principal business and
address of any corporation or other organization in which such employment is
conducted.
(II) The executive officers and directors of TCW are listed below. The
principal business address for each executive officer and director is 865 South
Figueroa Street, Suite 1800, Los Angeles, California 90017. Each executive
officer is a citizen of the United States of America unless otherwise specified
below:
EXECUTIVE OFFICERS & DIRECTORS
- ------------------------------
Robert A. Day Chairman of the Board & Chief Executive Officer
Ernest O. Ellison Director & Vice Chairman
Thomas E. Larkin, Jr. Director & President
Alvin R. Albe, Jr. Director & Executive Vice President, Finance &
Administration
Marc I. Stern Director, Executive Vice President, Managing Director &
Chief Investment Officer - International
Michael E. Cahill Managing Director, General Counsel & Secretary
David K. Sandie Managing Director, Chief Financial Officer & Assistant
Secretary
(III) The executive officers and directors of TAMCO are listed below. The
principal business address for each executive officer, director and portfolio
manager is 865 South Figueroa Street, Suite 1800, Los Angeles, California,
90017. Each executive officer and director is a citizen of the United States of
America unless otherwise specified below:
EXECUTIVE OFFICERS & DIRECTORS
- ------------------------------
Robert A. Day Chairman of the Board & Chief Executive Officer
Thomas E. Larkin, Jr. Director & Vice Chairman of the Board
Marc I. Stern Director, Vice Chairman of the Board & Chief
Investment Officer - International
Ernest O. Ellison Chief Investment Officer - Domestic Fixed Income
Alvin R. Albe, Jr. Director, Executive Vice President, Finance &
Administration
Michael E. Cahill Managing Director, General Counsel & Secretary
David K. Sandie Managing Director, Chief Financial Officer &
Assistant Secretary
Hilary G.D. Lord Senior Vice President, Chief Compliance Officer &
Assistant Secretary
(IV) The following sets forth with respect to each general partner of Special
Credits his name, residence or business address, present principal occupation or
employment and the name, principal business and address of any corporation or
other organization in which such employment is conducted for. Each general
partner who is a natural person is a citizen of the United States of America
unless otherwise specified below.
TAMCO is the Managing General Partner. See information in paragraph (iii)
above.
Bruce A. Karsh
President and Principal
Oaktree Capital Management, LLC
550 South Hope Street
22nd Floor
Los Angeles, California 90071
15
<PAGE>
Howard S. Marks
Chairman and Principal
Oaktree Capital Management, LLC
550 South Hope Street
22nd Floor
Los Angeles, California 90071
Sheldon M. Stone
Principal
Oaktree Capital Management, LLC
550 South Hope Street
22nd Floor
Los Angeles, California 90071
David Richard Masson
Principal
Oaktree Capital Management, LLC
550 South Hope Street
22nd Floor
Los Angeles, California 90071
(V) Special Credits is the sole general partner of the Special Credits
Limited Partnerships. See information in paragraph (iv) above regarding Special
Credits and its general partners.
(VI) TAMCO is the sole general partner of Principal Fund. See information
in paragraph (iii) above regarding TAMCO and its executive officers and
directors.
(VII) The members and executive officers of Oaktree and the portfolio
managers of the Special Credits Limited Partnerships, the Special Credits
Accounts and The Principal Fund are listed below. The principal address for
each member and executive officer of Oaktree and each Portfolio Manager of the
Fund is 550 S. Hope Street, Los Angeles, California 90071. All individuals
listed below are citizens of the United States of America.
EXECUTIVE OFFICERS AND MEMBERS
- ------------------------------
Howard S. Marks Chairman and Principal
Bruce A. Karsh President and Principal
Sheldon M. Stone Principal
David Richard Masson Principal
Larry Keele Principal
David Kirchheimer Managing Director and Chief Financial and
Administrative Officer
Kenneth Liang Managing Director and General Counsel
PORTFOLIO MANAGERS
Stephen A. Kaplan Senior Managing Director
Bruce A. Karsh President and Principal
(D)-(E)
During the last five years, neither TCWG, TCW, TAMCO, the Special Credits
Entities, The Principal Fund, Oaktree, nor, to the best of their knowledge, any
of their respective executive officers, directors and general partners (i) has
been convicted in a criminal proceeding (excluding traffic violations or similar
misdemeanors); or (ii) has been a party to a civil proceeding of a judicial or
administrative body of competent jurisdiction and as a result of such
proceedings 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.
16
<PAGE>
ITEM 3. SOURCE AND AMOUNT OF FUNDS OR OTHER CONSIDERATION
On March 1, 1996, the Special Credit Accounts distributed in-kind to Special
Credits 27,868 shares of the Issuer's Common Stock as an incentive payment for
managing the assets of the Special Credits Accounts. On March 1, 1996,
participants in the Oaktree Accounts distributed in-kind to the Oaktree Accounts
111,473 shares of the Issuer's Common Stock to be managed by Oaktree.
On April 16, 1996 and on April 17, 1996, The Principal Fund acquired 781,377
shares of the Issuer's Common Stock and warrants to purchase 958,683 shares of
the Issuer's Common Stock and acquired 62,500 shares of the Issuer's Common
Stock, respectively, through private transaction and through broker-dealers.
Approximately $11,315,409.13 and $804,687.50, respectively, of funds, including
brokerage commission, were used by The Principal Fund for the acquisition of
such shares of Common Stock and warrants which was obtained from the working
capital of such limited partnership. The Principal Fund had previously obtained
other shares, reported herein, on the open market through broker-dealers. The
Special Credits Limited Partnerships, Special Credits Trusts and Special Credits
Accounts had previously obtained other shares of the Issuer's Common Stock,
reported herein, primarily in connection with the bankruptcy restructuring on
March 31, 1993 pursuant to the Second Amended Plan of Reorganization of the
Issuer and the open market purchase of shares through broker-dealers.
ITEM 4. PURPOSE OF TRANSACTION
The shares of Common Stock and warrants acquired on April 16, 1996 and on April
17, 1996 were acquired for investment purposes. Based on continuing evaluation
of the Issuer's businesses and prospects, alternative investment opportunities
and all other factors deemed relevant, additional shares of the Issuer's Common
Stock and/or warrants to purchase the Issuer's Common Stocks may be acquired in
the open market or in privately negotiated transactions, or some or all of the
shares of the Issuer's Common Stock may be sold. Oaktree, Special Credits and
the other TCW Related Entities have indicated to the Issuer that they may
purchase more shares and/or warrants, including the possibility of making an
offer to purchase all of the outstanding shares and warrants, but have made no
proposals and have entered into no agreements which related to or would result
in any of the matters described in Items 4(a)-(j) of Schedule 13D; however, as
part of their ongoing review of investment alternatives, Oaktree, Special
Credits and the other TCW Related Entities have not excluded the possibility of
considering such matters in the future or formulating a plan with respect to
such matters subject to applicable law, and, from time to time, Oaktree, Special
Credits or such other TCW Related Entities may hold discussions with or make
formal proposals to management or the Board of Directors of the Issuer, other
stockholders of the Issuer or other third parties regarding such matters.
ITEM 5. INTEREST AND SECURITIES OF THE ISSUER
(A) As of the date of this Amendment No. 2 to Schedule 13D, TCW Special
Credits Fund II beneficially owns 759,767 shares of the Issuer's Common Stock
which is approximately 3.9% of the outstanding shares of the Issuer's Common
Stock; TCW Special Credits Fund IIb beneficially owns 695,883 shares of the
Issuer's Common Stock which is approximately 3.6% of the outstanding shares of
the Issuer's Common Stock; TCW Special Credits Fund III beneficially owns
2,462,032 shares of the Issuer's Common Stock which is approximately 12.6% of
the outstanding shares of the Issuer's Common Stock; TCW Special Credits Fund
IIIb beneficially owns 1,008,198 shares of the Issuer's Common Stock which is
approximately 5.2% of the outstanding shares of the Issuer's Common Stock; and
Special Credits, for its own benefit and as the general partner of the Special
Credits Limited Partnerships and the investment manager of the Special Credits
Accounts may be deemed to beneficially own 6,045,832 shares of the Issuer's
Common Stock which is approximately 31.0% of the outstanding shares of the
Issuer's Common Stock.
As of the date of this Amendment No. 2 to Schedule 13D, TCW Special Credits
Trust beneficially owns 747,159 shares of the Issuer's Common Stock which is
approximately 3.8% of the outstanding shares of the Issuer's Common Stock; and
TCW Special Credit Trust IIIb beneficially owns 402,105 shares of the Issuer's
Common Stock which is approximately 2.1% of the outstanding shares of the
Issuer's Common Stock. TCW, as the trustee of the Special Credits Trusts may be
deemed to beneficially own 1,149,264 shares of the Issuer's Common Stock which
is approximately 5.9% of the outstanding shares of the Issuer's Common Stock.
As of the date of this Amendment No. 2 to Schedule 13D, The Principal Fund
beneficially owns 3,568,921 shares of the Issuer's Common Stock, including (a)
781,377 shares of the Issuer's Common Stock purchased on April 16, 1996, (b)
958,683 shares of the Issuer's Common Stock issuable upon exercise of the
warrants purchased on April 16, 1996 and (c) 62,500 shares of the
17
<PAGE>
Issuer's Common Stock purchased on April 17, 1996, which is approximately
17.5% of the outstanding shares of the Issuer's Common Stock.
TAMCO, as the managing partner of Special Credits and the general partner of The
Principal Fund may be deemed to beneficially own shares of the Issuer's Common
Stock held by the Special Credit Entities, Special Credit Accounts, and The
Principal Fund, all of which constitutes 9,614,752 shares (including 958,683
shares of Common Stock issuable upon exercise of warrants held by The Principal
Fund), or approximately 47.0% of the outstanding shares of the Issuer's Common
Stock.
TCWG, as the parent corporation of TCW and TAMCO, may be deemed to beneficially
own shares of the Issuer's Common Stock deemed to be owned by the other TCW
Related Entities, all of which constitutes 10,764,016 shares of the Issuer's
Common Stock (including 958,683 shares of Common Stock issuable upon exercise of
warrants held by The Principal Fund) (approximately 52.6% of the outstanding
shares of the Issuer's Common Stock). TCWG, TCW and TAMCO each disclaims
beneficial ownership of the shares of the Issuer's Common Stock reported herein
and the filing of this Statement shall not be construed as an admission that any
such entity is the beneficial owner of any securities covered by this Statement.
Oaktree, pursuant to its subadvisory agreement with TAMCO may be deemed to
beneficially own shares of the Issuer's Common Stock held by The Principal Fund,
all of which constitutes 3,568,921 shares (including 958,683 shares of Common
Stock issuable upon exercise of warrants held by The Principal Fund) of the
outstanding shares of the Issuer's Common Stock. Oaktree and each of the
foregoing individuals disclaims ownership of the shares of the Issuer's Common
Stock reported herein (except for the shares owned directly by such individuals)
and the filing of this Statement shall not be construed as an admission that any
such person is the beneficial owner of any securities covered by this statement.
(B) Special Credits, as the sole general partner of the Special Credits
Limited Partnerships, has discretionary authority and control over all of the
assets of the Special Credits Limited Partnerships pursuant to the limited
partnership agreements for such limited partnerships including the power to vote
and dispose of the Issuer's Common Stock held by the Special Credits Limited
Partnerships. In addition, Special Credits, as the investment manager of the
Special Credits Accounts has the discretionary authority and control over all of
the assets of such accounts pursuant to the investment management agreement
relating to such accounts including the power to vote and dispose of the
Issuer's Common Stock held in the name of the Special Credits Accounts. In
addition, Special Credits has the sole authority to vote and dispose of 27,868
shares of Common Stock beneficiary owned by Special Credits for its own account.
Therefore, Special Credits has the power to vote and dispose of 6,045,831 shares
of the Issuer's Common Stock (including 958,683 shares of Common Stock issuable
upon exercise of warrants held by The Principal Fund).
TAMCO, as the managing general partner of Special Credits also has the power to
vote and dispose the shares of Issuer's Common Stock held by Special Credits
referenced above. In addition, TAMCO, as general partner of The Principal Fund
has discretionary authority and control over all of the assets of The Principal
Fund pursuant to the limited partnership agreement for such limited partnership.
Therefore, TAMCO has the power to vote and dispose of 9,614,752 shares of the
Issuer's Common Stock (including 958,683 shares of Common Stock issuable upon
exercise of warrants held by The Principal Fund).
TCW, as the trustee of the Special Credits Trusts, has discretionary authority
and control over all the assets of the Special Credits Trusts pursuant to the
trust agreement for such trust including the power to vote and dispose of the
Issuer's Common Stock held by the Special Credits Trusts. Therefore, TCW has
the power to vote and dispose of 1,149,264 shares of the Issuer's Common Stock.
TCWG, as the parent of TCW and TAMCO, may be deemed to have the power to vote
and dispose of the shares of the Issuer's Common Stock that the other TCW
Related Entities have power to vote and dispose, all of which constitutes
10,764,016 shares of the Issuer's Common Stock (including 958,683 shares of
Common Stock issuable upon exercise of warrants held by The Principal Fund).
Oaktree, as the fund manager of (a) the Oaktree Accounts and (b) The Principal
Fund pursuant to the subadvisory agreement between TAMCO and Oaktree, may be
deemed to have the power to vote and dispose of certain of the shares of the
Issuer's Common Stock that the Oaktree Accounts and that The Principal Fund has
power to vote and dispose, all of which constitutes 3,680,394 shares of the
Issuer's Common Stock.
(C) Except for the purchases by The Principal Fund and the in-kind
distributions described herein, neither Oaktree nor any of the TCW Related
Entities, and to the best of their knowledge, none of their respective executive
officers, directors, or general partners has effected transactions involving the
issuer's Common Stock during the last 60 days.
18
<PAGE>
(d) None
(e) Not applicable
ITEM 6. CONTRACTS, ARRANGEMENTS, UNDERSTANDINGS OR RELATIONSHIPS WITH RESPECT
TO SECURITIES OF THE ISSUER
Special Credits, as general partner of the Special Credits Limited Partnerships,
receives a fee for managing all the assets of each Special Credits Limited
Partnership. In addition, Special Credits, as investment manager of the Special
Credits Accounts, receives a management fee for managing the assets of each
Special Credits Account. The Special Credits Limited Partnerships and Special
Credits Accounts have similar investment strategies of investing in financially
distressed entities; however, the implementation of these strategies may differ
from partnership to partnership and account to account.
TAMCO, as general partner of The Principal Fund, receives a management fee for
its management of The Principal Fund. Pursuant to a subadvisory agreement
between TAMCO and Oaktree, The Principal Fund is managed by Oaktree, who
receives a portion of the management fee received by TAMCO for its management of
The Principal Fund. The Principal Fund's investment strategy is to invest in
entities in which there is a potential for The Principal Fund to exercise
significant influence over management.
TCW, as trustee of Special Credits Trusts, receives a management fee for
managing all the assets of Special Credits Trusts. The Special Credits Trusts
each have an investment strategy similar to the Special Credits Limited
Partnerships and Special Credits Accounts in investing in financially distressed
entities. However, the implementation of this strategy may differ from entity
to entity and account to account.
On April 17, 1996, TAMCO, in its capacity as general partner of The Principal
Fund, entered into a letter agreement with Lodestar Associates, L.P., in its
capacity as general partner of Starbaby Holding Partnership, to purchase and
sell, respectively, the 681,377 shares of the Issuer's Common Stock and
958,683 shares of the Issuer's Common Stock issuable upon exercise of
warrants held by The Principal Fund reported herein. Other than this
agreement and except to the extent the securities referred to in this
Statement constitute assets of the Special Credits Entities and Special
Credits Accounts, and The Principal Fund, there are no contracts,
understandings or relationships (legal or otherwise) among or between any
member of the TCW Related Entities or, to the best of their knowledge, their
respective executive officers, directors or general partners, or between or
among any of such persons and with respect to any securities of the Issuer.
ITEM 7. MATERIAL TO BE FILED AS EXHIBITS
The following are filed herewith as Exhibits to this Schedule 13D:
Exhibit 1- Agreement of TCW Related Entities regarding a joint Schedule 13D
(and such amendments as may become necessary) with respect to the
Common Stock of Kindercare Learning Centers, Inc.
Exhibit 2- Letter Agreement by and between TAMCO, in its capacity as general
partner of The Principal Fund and Lodestar Associates, L.P., in
its capacity as general partner of Starbaby Holding Partnership,
regarding Securities of KinderCare Learning Centers, Inc. dated
as of April 17, 1996.
19
<PAGE>
SIGNATURE
After reasonable inquiry and to the best of its knowledge and belief, the
undersigned certify that the information set forth in this Statement is true,
complete and correct.
Dated as of 19th day of April, 1996.
THE TCW GROUP, INC.
/s/ Michael Cahill
_______________________________________
Michael Cahill
Managing Director and General Counsel
TRUST COMPANY OF THE WEST
/s/ Kenneth Liang
_______________________________________
Kenneth Liang, Authorized Signatory
TCW ASSET MANAGEMENT COMPANY
/s/ Kenneth Liang
_______________________________________
Kenneth Liang, Authorized Signatory
TCW SPECIAL CREDITS
/s/ Kenneth Liang
________________________________________
Kenneth Liang, Authorized Signatory of
TCW Asset Management Company, the
Managing General Partner of TCW
Special Credits
TCW SPECIAL CREDITS FUND II
/s/ Kenneth Liang
_______________________________________
Kenneth Liang
Authorized Signatory of TCW Asset
Management Company, the Managing General
Partner of TCW Special Credits, the General
Partner of TCW Special Credits Fund II
TCW SPECIAL CREDITS FUND IIb
/s/ Kenneth Liang
______________________________________
Kenneth Liang
Authorized Signatory of TCW Asset
Management Company, the Managing General
Partner of TCW Special Credits, the General
Partner of TCW Special Credits Fund IIb
20
<PAGE>
TCW SPECIAL CREDITS FUND III
/s/ Kenneth Liang
_________________________________________
Kenneth Liang
Authorized Signatory of TCW Asset
Management Company, the Managing General
Partner of TCW Special Credits, the General
Partner of TCW Special Credits Fund III
TCW SPECIAL CREDITS FUND IIIb
/s/ Kenneth Liang
_______________________________________
Kenneth Liang, Authorized Signatory of
TCW Asset
Management Company, the Managing General
Partner of TCW Special Credits, the General
Partner of TCW Special Credits Fund IIIb
TCW SPECIAL CREDITS TRUST
/s/ Kenneth Liang
______________________________________
Kenneth Liang,
Authorized Signatory of
Trust Company of the West, the trustee of
TCW Special Credits Trust
TCW SPECIAL CREDITS TRUST IIIb
/s/ Kenneth Liang
_______________________________________
Kenneth Liang,
Authorized Signatory of
Trust Company of the West, the trustee of
TCW Special Credits Trust IIIb
OAKTREE CAPITAL MANAGEMENT, LLC
/s/ Kenneth Liang
_______________________________________
Kenneth Liang, Authorized Signatory
TCW SPECIAL CREDITS FUND V - THE PRINCIPAL FUND
/s/ Kenneth Liang
______________________________________
Kenneth Liang,
Authorized Signatory of
TCW Asset Management Company, the
General Partner of TCW Special Credits
Fund V - The Principal Fund
21
<PAGE>
SCHEDULE I
BOARD OF DIRECTORS
OF
TCW GROUP, INC.
All of the following individuals are directors of TCW Group, Inc. Each director
is a citizen of the United States of America unless otherwise specified below:
HOWARD P. ALLEN HAROLD R. FRANK
- --------------- ---------------
Former Chairman & CEO Chairman of the Board
Southern California Edison Applied Magnetics Corporation
2244 Walnut Grove Blvd. 75 Robin Hill Rd.
Rosemead, CA 91770 Goleta, CA 93017
JOHN M. BRYAN DR. HENRY A. KISSINGER
- ------------- ----------------------
Partner Chairman
Bryan & Edwards Kissinger Associates, Inc.
600 Montgomery St., 35th Floor 350 Park Ave., 26th Floor
San Francisco, CA 94111 New York, NY 10022
ROBERT A. DAY
- ------------- KENNETH L. LAY
Chairman of the Board, --------------------
Chairman and Chief Executive Officer Enron Corp.
Trust Company of the West 1400 Smith Street
200 Park Avenue, Suite 2200 Houston, TX 77002-7369
New York, New York 10166
DAMON P. DE LASZLO, ESQ. MICHAEL T. MASIN, ESQ.
- ------------------------ -----------------------
Managing Director of Harwin Vice Chairman
Engineers S.A., Chairman & D.P. GTE Corporation
Advisers Holdings Limited One Stamford Forum
Byron's Chambers Stamford, CT 06904
A2 Albany, Piccadilly
London W1V 9RD - England EDFRED L. SHANNON, JR.
(Citizen of United Kingdom) ----------------------
Investor/Rancher
1000 S. Fremont Ave.
Alhambra, CA 91802
WILLIAM C. EDWARDS ROBERT G. SIMS
- ------------------ --------------
Partner - Bryan & Edwards Private Investor
3000 Sand Hill Road, Suite 190 11828 Rancho Bernardo, Box 1236
Menlo Park, CA 94025 San Diego, CA 92128
ERNEST O. ELLISON CARLA A. HILLS
- ----------------- --------------
Vice Chairman 1200 19th Street, N.W.
Trust Company of the West 5th Floor
865 South Figueroa St., Suite 1800 Washington, DC 20036
Los Angeles, California 90017
22
<PAGE>
EXHIBIT INDEX
Sequential
Exhibit Page
Number Description Number
- ------ ----------- ------
1.1 Agreement of TCW Related Entities regarding a joint Schedule 13D
(and such amendments as may become necessary) with respect to
the Common Stock of Kindercare Learning Centers, Inc. dated
as of October 4, 1995.
2.1 Letter Agreement by and between TAMCO, in its capacity as general
partner of The Principal Fund and Lodestar Associates, L.P., in its
capacity as general partner of Starbaby Holding Partnership,
regarding Securities of KinderCare Learning Centers, Inc. dated as
of April 17, 1996.
23
<PAGE>
EXHIBIT 1
AGREEMENT
WHEREAS, The TCW Group ("TCWG"), Trust Company of the West ("TCW"), TCW
Asset Management Company ("TAMCO"), TCW Special Credits ("Special Credits"), and
TCW Special Credits Fund II, TCW Special Credits Fund IIb, TCW Special Credits
Fund III and TCW Special Credits Fund IIIb (collectively, the "Special Credits
Limited Partnerships"), and TCW Special Credits Fund V - The Principal Fund (the
"Principal Fund"), and TCW Special Credits Trust and TCW Special Credits Trust
IIIb (collectively, Special Credits Trusts"), and Oaktree Capital Management,
LLC ("Oaktree"), individually or collectively, may be deemed to be a beneficial
owner within the meaning of the Securities Exchange Act of 1934, as amended (the
"Exchange Act"), for purposes of Section 13(d) of the Exchange Act of the Common
Stock, $0.01 par value per share, of Kindercare Learning Centers, Inc., a
Delaware corporation; and
WHEREAS, TCWG, TCW, TAMCO, Special Credits, Special Credits Limited
Partnerships, Special Credits Trusts, the Principal Fund, and Oaktree each
desires to satisfy any filing obligation each may have under Section 13(d) of
the Exchange Act by filing a single Schedule 13D pursuant to such Section with
respect to each class of securities.
NOW THEREFORE, TCWG, TCW, TAMCO, Special Credits, Special Credits Limited
Partnerships, Special Credits Trusts, the Principal Fund, and Oaktree agree to
file a Schedule 13D under the Exchange Act relating to the Common Stock of
Kindercare Learning Centers, Inc. and agree further to file any such amendments
thereto as may become necessary unless and until such time as one of the parties
shall give written notice to the other parties of this Agreement that it wishes
to file a separate Schedule 13D relating to the Common Stock of Kindercare
Learning Centers, Inc., provided that each person on whose behalf the
Schedule 13D or any amendment is filed is responsible for the timely filing of
such Schedule 13D and any amendments thereto necessitated by the actions or
intentions of such person and for the completeness and accuracy of the
information pertaining to it and its actions and intentions.
The Agreement may be executed in two or more counterparts, each of which
shall constitute but one instrument.
24
<PAGE>
Dated as of 10th day of November, 1995.
THE TCW GROUP, INC.
/s/ Michael Cahill
_______________________________________
Michael Cahill
Managing Director and General Counsel
TRUST COMPANY OF THE WEST
/s/ Kenneth Liang
_______________________________________
Kenneth Liang, Authorized Signatory
TCW ASSET MANAGEMENT COMPANY
/s/ Kenneth Liang
_______________________________________
Kenneth Liang, Authorized Signatory
TCW SPECIAL CREDITS
/s/ Kenneth Liang
________________________________________
Kenneth Liang, Authorized Signatory of
TCW Asset Management Company, the
Managing General Partner of TCW
Special Credits
TCW SPECIAL CREDITS FUND II
/s/ Kenneth Liang
_______________________________________
Kenneth Liang
Authorized Signatory of TCW Asset
Management Company, the Managing General
Partner of TCW Special Credits, the General
Partner of TCW Special Credits Fund II
TCW SPECIAL CREDITS FUND IIb
/s/ Kenneth Liang
______________________________________
Kenneth Liang
Authorized Signatory of TCW Asset
Management Company, the Managing General
Partner of TCW Special Credits, the General
Partner of TCW Special Credits Fund IIb
25
<PAGE>
TCW SPECIAL CREDITS FUND III
/s/ Kenneth Liang
_________________________________________
Kenneth Liang
Authorized Signatory of TCW Asset
Management Company, the Managing General
Partner of TCW Special Credits, the General
Partner of TCW Special Credits Fund III
TCW SPECIAL CREDITS FUND IIIb
/s/ Kenneth Liang
_______________________________________
Kenneth Liang, Authorized Signatory of
TCW Asset
Management Company, the Managing General
Partner of TCW Special Credits, the General
Partner of TCW Special Credits Fund IIIb
TCW SPECIAL CREDITS TRUST
/s/ Kenneth Liang
______________________________________
Kenneth Liang,
Authorized Signatory of
Trust Company of the West, the trustee of
TCW Special Credits Trust
TCW SPECIAL CREDITS TRUST IIIb
/s/ Kenneth Liang
_______________________________________
Kenneth Liang,
Authorized Signatory of
Trust Company of the West, the trustee of
TCW Special Credits Trust IIIb
OAKTREE CAPITAL MANAGEMENT, LLC
/s/ Kenneth Liang
_______________________________________
Kenneth Liang, Authorized Signatory
TCW SPECIAL CREDITS FUND V - THE PRINCIPAL FUND
/s/ Kenneth Liang
______________________________________
Kenneth Liang,
Authorized Signatory of
TCW Asset Management Company, the
General Partner of TCW Special Credits
Fund V - The Principal Fund
26
<PAGE>
TCW SPECIAL CREDITS FUND V
c/o OAKTREE CAPITAL MANAGEMENT, LLC
550 S. HOPE STREET, 22ND FLOOR
LOS ANGELES, CA 90071
- --------------------------------------------------------------------------------
TELEPHONE: (213)614-0900 TELECOPIER: (213)694-1599
April 17, 1996
Starbaby Holding Partnership
c/o John Raspitha
338 Bekasina Drive
Henderson, NV 89014
Re: SECURITIES OF KINDERCARE LEARNING CENTERS, INC.
-----------------------------------------------
Gentlemen:
This letter constitutes your agreement to sell 681,377 shares of common stock
(the "Shares") of KinderCare Learning Centers, Inc. (the "Company") and 958,883
warrants to purchase shares of common stock of the Company (the "Warrants") as
of the date set forth above to TCW Special Credits Fund V - The Principal Fund
("Fund V"). The purchase prices for such transactions shall be, respectively,
$12.625 per Share and $1.50 per Warrant. It is agreed that this will be a non-
broker transaction. (The Shares and the Warrants are referred to hereafter,
collectively, as the "Securities".)
You represent that you are the sole owner of the Securities and have the
authority to sell the Securities to Fund V without violating any agreement by
which you are bound or any applicable law. You also represent that you are a
sophisticated seller and your decision to sell the Securities to Fund V has been
made by you without reliance on any investment advice or information from TCW
Asset Management Company or any of its affiliates. You are aware that Fund V
is a current stockholder of the Company.
If you are in agreement with the foregoing, please execute a copy of this letter
and return it to us by fax at (213)694-1599, and please arrange for delivery of
the Securities via DTC to Fund V c/o Sanwa Bank against payment via DTC. Our
instructions for delivery are as follows:
Sanwa Bank California
DTC # 2299
Agent # 25716
Acct. # 400-1403
FBO: Special Credits V/Miller
<PAGE>
We will arrange for wiring via DTC of $10,040,409.13 to your account pursuant to
the wiring instructions set forth on Exhibit A hereto.
Should you have any questions, feel free to call Richard Wickline, Assistant
Vice President, Legal (213/694-1521) at Oaktree Capital Management, LLC or me
(213/694-1522).
TCW SPECIAL CREDITS FUND V - THE PRINCIPAL FUND
By: TCW ASSET MANAGEMENT COMPANY,
ITS GENERAL PARTNER
/s/ Kenneth Liang
------------------------------------
Kenneth Liang
AUTHORIZED SIGNATORY
ACCEPTED AND AGREED TO
AS OF THE DATE SET FORTH ABOVE:
Starbaby Holding Partnership
By: Lodestar Associates, L.P.,
its Managing General Partner
By: LODESTAR MANAGEMENT, INC.
By: /s/ Ken Miller
--------------------------
Ken Miller
President
