SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
______________
SCHEDULE 13D
Under the Securities Exchange Act of 1934
Pointe Communications, Corporation
(Name of Issuer)
Common Stock, par value $0.00001
(Title of Class of Securities)
730749108
(CUSIP Number)
Edward G. Grinacoff
Sandler Capital Management, Inc.
767 Fifth Avenue, 45th Floor, New York, New York, 10153; (212) 754-8100
(Name, Address and Telephone Number of Person
Authorized to Receive Notices and Communications)
May 13, 1999
(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 statement because of Rule 13d-1(e), 13d-1(f) or 13d-1(g), check the
following box. [ ].
<PAGE>
SCHEDULE 13D
CUSIP No. 872241 10 4 Page 2 of 11
- --------------------------------------------------------------------------------
1 NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
Sandler Capital Partners IV, L.P.
- --------------------------------------------------------------------------------
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) [ ]
Not Applicable
- --------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
Delaware
- --------------------------------------------------------------------------------
NUMBER OF 7 SOLE VOTING POWER
SHARES 11,401,071
BENEFICIALLY --------------------------------------------------------------
OWNED BY 8 SHARED VOTING POWER
EACH -0-
REPORTING --------------------------------------------------------------
PERSON 9 SOLE DISPOSITIVE POWER
WITH 11,401,071
--------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
-0-
- --------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
11,401,071
- --------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES*
[ ]
Not Applicable
- --------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
10.88%
- --------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
LP
- --------------------------------------------------------------------------------
<PAGE>
SCHEDULE 13D
CUSIP No. 872241 10 4 Page 3 of 11
- --------------------------------------------------------------------------------
1 NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
Sandler Capital Partners IV FTE, L.P.
- --------------------------------------------------------------------------------
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) [ ]
Not Applicable
- --------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
Delaware
- --------------------------------------------------------------------------------
NUMBER OF 7 SOLE VOTING POWER
SHARES 4,670,357
BENEFICIALLY --------------------------------------------------------------
OWNED BY 8 SHARED VOTING POWER
EACH -0-
REPORTING --------------------------------------------------------------
PERSON 9 SOLE DISPOSITIVE POWER
WITH 4,670,357
--------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
-0-
- --------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
4,670,357
- --------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES*
[ ]
Not Applicable
- --------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
4.46%
- --------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
LP
- --------------------------------------------------------------------------------
<PAGE>
SCHEDULE 13D
CUSIP No. 872241 10 4 Page 4 of 11
- --------------------------------------------------------------------------------
1 NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
Sandler Investment Partners, L.P.
- --------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP*
(a) [ ]
(b) [X]
- --------------------------------------------------------------------------------
3 SEC USE ONLY
- --------------------------------------------------------------------------------
4 SOURCE OF FUNDS*
AF
- --------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO
ITEMS 2(d) OR 2(e) [ ]
Not Applicable
- --------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
Delaware
- --------------------------------------------------------------------------------
NUMBER OF 7 SOLE VOTING POWER
SHARES 16,071,428
BENEFICIALLY --------------------------------------------------------------
OWNED BY 8 SHARED VOTING POWER
EACH -0-
REPORTING --------------------------------------------------------------
PERSON 9 SOLE DISPOSITIVE POWER
WITH 16,071,428
--------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
-0-
- --------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
16,071,428
- --------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES*
[ ]
Not Applicable
- --------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
15.34%
- --------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
LP
- --------------------------------------------------------------------------------
<PAGE>
SCHEDULE 13D
CUSIP No. 872241 10 4 Page 5 of 11
- --------------------------------------------------------------------------------
1 NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
Sandler Capital Management
- --------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP*
(a) [ ]
(b) [X]
- --------------------------------------------------------------------------------
3 SEC USE ONLY
- --------------------------------------------------------------------------------
4 SOURCE OF FUNDS*
AF
- --------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO
ITEMS 2(d) OR 2(e) [ ]
Not Applicable
- --------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
New York
- --------------------------------------------------------------------------------
NUMBER OF 7 SOLE VOTING POWER
SHARES 16,071,428
BENEFICIALLY --------------------------------------------------------------
OWNED BY 8 SHARED VOTING POWER
EACH -0-
REPORTING --------------------------------------------------------------
PERSON 9 SOLE DISPOSITIVE POWER
WITH 16,071,428
--------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
-0-
- --------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
16,071,428
- --------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES*
[ ]
Not Applicable
- --------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
15.34%
- --------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
LP
- --------------------------------------------------------------------------------
<PAGE>
SCHEDULE 13D
CUSIP No. 872241 10 4 Page 6 of 11
- --------------------------------------------------------------------------------
1 NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
MJDM Corp.
- --------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP*
(a) [ ]
(b) [X]
- --------------------------------------------------------------------------------
3 SEC USE ONLY
- --------------------------------------------------------------------------------
4 SOURCE OF FUNDS*
AF
- --------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO
ITEMS 2(d) OR 2(e) [ ]
Not Applicable
- --------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
New York
- --------------------------------------------------------------------------------
NUMBER OF 7 SOLE VOTING POWER
SHARES 16,071,428
BENEFICIALLY --------------------------------------------------------------
OWNED BY 8 SHARED VOTING POWER
EACH -0-
REPORTING --------------------------------------------------------------
PERSON 9 SOLE DISPOSITIVE POWER
WITH 16,071,428
--------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
-0-
- --------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
16,071,428
- --------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES*
[ ]
Not Applicable
- --------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
15.34%
- --------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
CO
- --------------------------------------------------------------------------------
<PAGE>
The summary descriptions contained in this report of certain agreements and
documents are qualified in their entirety by reference to the complete texts of
such agreements and documents filed as Exhibits hereto and incorporated herein
by reference.
Item 1. Security and Issuer.
This Report on Schedule 13D relates to the acquisition of 5,000 shares of
Series A Convertible Senior Preferred Stock and 5,357,143 Common Stock Warrants
for a direct or indirect ownership of an aggregate of 16,071,428 shares of
Common Stock of Pointe Communications Corporation, a Delaware corporation (the
"Company"), pursuant to a Securities Purchase Agreement , dated as of May 13,
1999, and a Warrant Purchase Agreement dated as of May 13, 1999, as attached
hereto as Exhibit 10.1 and 10.2, entered into between Sandler Capital Partners
IV, L.P. Sandler Capital Partners IV FTE, L.P. and the Company.
(a) Common Stock (CUSIP No. 730749108)
(b) Pointe Communications Corporation
2839 Paces Ferry Road, Suite 500
Atlanta, Georgia 30339
Item 2. Identity and Background.
The reporting persons include, Sandler Capital Partners IV, L.P., a
Delaware limited partnership ("SCP IV"), Sandler Capital Partners IV FTE, L.P.,
a Delaware limited partnership ("SCP IV FTE," and with SCP IV, the "SCP Funds"),
Sandler Investment Partners, L.P., a Delaware limited partnership ("SIP"),
Sandler Capital Management, a New York general partnership ("SCM") and MJDM
Corp. a New York general partnership (collectively the "Sandler Partnerships").
MJDM Corp is the general partner for SCM, which is the general partner for
SIP which is the general partner for both SCP Funds.
The principal office and business address of the Sandler Partnerships is
767 Fifth Avenue, 45th Floor, New York, New York 10153.
During the last five years, to the best knowledge of the persons filing
this report, none of the Sandler Partnerships, any of their respective partners
or executive officers have been convicted in any criminal proceedings (excluding
traffic violations and similar misdemeanors).
During the last five years, to the best knowledge of the persons filing
this report none of the Sandler partnerships, any of their respective partners
or executive officers, have been a party to any civil proceeding of a judicial
or administrative body of competent jurisdiction as the result of which it, he
or she was or is subject to any judgment, decree or final order enjoining future
<PAGE>
violations of, or prohibiting or mandating activities subject to, federal or
state securities laws or finding any violation with respect to such laws.
Item 3. Source and Amount of Funds or Other Consideration.
The source of funds for the acquisition of the securities was the general
working capital of the SCP Funds.
Item 4. Purpose of Transaction.
The reporting persons acquired their securities for the purposes of
investment.
The reporting persons do not have any plans or proposals which relate to or
would result in any of the actions set forth in subparagraphs (a) through (j) of
Item 4 of Schedule 13D.
Item 5. Interest in Securities of Issuer.
(a) The following list sets forth the aggregate number and percentage
(based on 65,056,267 shares of Common Stock outstanding, as reported by the
Company to the reporting persons as of May 13, 1999, the 10,714 285 shares of
Common Stock issuable on conversion of the 5000 shares of Class A Convertible
Senior Preferred Stock and the 5,357,143 shares of common stock issuable upon
the exercising of the common stock warrants) of shares of Common Stock, as
converted, owned beneficially by each reporting person named in Item 2, as of
May 13, 1999:
Number of Shares of Common Percentage of Shares of
Reporting Person Stock Beneficially Owner Common Stock Beneficially Owned
SCP IV 11,401,071 10.88%
SCP IV FTE 4,670,357 4.46%
SIP 16,071,428 15.34%
SCM 16,071,428 15.34%
MJDM 16,071,428 15.34%
(b) The number of shares of Common Stock beneficially owned: (i) with
respect to which there is sole voting power is 16,071,428 (ii) with respect to
which there is shared voting power is 0, (iii) with respect to which there is
dispositive power is 16,071,428, and with respect to which there is shared
dispositive power is 0.
(c) Except as described in Item 4, none of the Sandler Partnerships have
engaged in any transaction in the Common Stock that was effected during the past
60 days.
(d) There is no person that 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
Common Stock beneficially owned by the Sandler Partnerships.
<PAGE>
(e) Not applicable.
Item 6. Contracts, Arrangements, Understandings or Relationships With
Respect to Securities of the Issuer.
The information set forth in Items 2, 4, and 5 is hereby incorporated
herein by reference.
Item 7. Material to be Filed as Exhibits.
Exhibit No. Title of Exhibit
10.1 Securities Purchase Agreement dated as of May 13, 1999
(incorporated by reference to exhibit 10.20 of the company's
current report on Form 10-Q dated May 17, 1999 (the "10-Q")).
10.2 Warrant Agreement dated as of May 13, 1999 (incorporated by
reference to exhibit 10.22 of the 10-Q).
99.1 Executive Officers and Director of MJDM Corp.
<PAGE>
SIGNATURE
After reasonable inquiry and to the best of my knowledge and belief, I
certify that the information set forth in this statement is true, complete and
correct.
SANDLER CAPITAL PARTNERS IV, L.P.
By: Sandler Investment Partners, L.P.
General Partner
By: Sandler Capital Management,
General Partner
MJDM Corp., a General Partner
By: /s/ Edward G. Grinacoff
------------------------
Edward G. Grinacoff
President
SANDLER CAPITAL PARTNERS IV, FTE, L.P.
By: Sandler Investment Partners, L.P.
General Partner
By: Sandler Capital Management,
General Partner
MJDM Corp., a General Partner
By: /s/ Edward G. Grinacoff
------------------------
Edward G. Grinacoff
President
<PAGE>
SANDLER Investment Partners, L.P.
By: Sandler Capital Management,
General Partner
By: MJDM Corp., a General Partner
By: /s/ Edward G. Grinacoff
------------------------
Edward G. Grinacoff
President
SANDLER CAPITAL MANAGEMNET
By: MJDM Corp., a General Partner
By: /s/ Edward G. Grinacoff
------------------------
Edward G. Grinacoff
President
MJDM CORP.
By: /s/ Edward G. Grinacoff
------------------------
Edward G. Grinacoff
President
Exhibit 99.1
MJDM Corp.
Executive Officers and Directors
<TABLE>
<CAPTION>
Name Position Principal Occupation Business Address
<S> <C> <C> <C>
Edward G. Grinacoff President and Treasurer President and Treasurer Sandler Capital Management
767 Fifth Avenue, 45th Fl.
New York, N.Y. 10153
Moria Mitchell Vice President and Vice President and Sandler Capital Management
Secretary Secretary 767 Fifth Avenue, 45th Fl.
New York, N.Y. 10153
Michael J. Marocco Director Director Sandler Capital Management
767 Fifth Avenue, 45th Fl.
New York, N.Y. 10153
</TABLE>
