UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
SCHEDULE 13D
UNDER THE SECURITIES EXCHANGE ACT OF 1934
(Amendment No. 10)
Insilco Corporation
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(Name of Issuer)
Common Stock (Par Value $.001 Per Share)
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(Title of Class of Securities)
457659704
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(CUSIP Number)
David J. Greenwald, Esq.
Goldman, Sachs & Co.
85 Broad Street
New York, NY 10004
(212) 902-1000
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(Name, Address and Telephone Number of Person Authorized to Receive Notices
and Communications)
April 1, 1998
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(Date of Event Which Requires Filing of This Statement)
If the filing person has previously filed a statement on Schedule 13G to report
the acquisition which is the subject of this Schedule 13D, and is filing this
schedule because of Rule 13d-1(b)(3) or (4), check the following box: [ ].
PAGE 1 OF 8 PAGES
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CUSIP NO. 457659704
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1. NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
Water Street Corporate Recovery Fund I, L.P.
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2. CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP
(a) [ ]
(b) [ ]
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3. SEC USE ONLY
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4. SOURCE OF FUNDS
OO; WC
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5. CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT
TO ITEMS 2(D) OR 2(E)
[ ]
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6. CITIZENSHIP OR PLACE OF ORGANIZATION
Delaware
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Number of 7. SOLE VOTING POWER
Shares -0-
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Beneficially 8. SHARED VOTING POWER
Owned By 1,863,878
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Each 9. SOLE DISPOSITIVE POWER
Reporting -0-
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Person With 10. SHARED DISPOSITIVE POWER
1,863,878
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11. AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
1,863,878
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12. CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
CERTAIN SHARES
[ ]
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13. PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
46.4%
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14. TYPE OF REPORTING PERSON
PN
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PAGE 2 OF 8 PAGES
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CUSIP NO. 457659704
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1. NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
The Goldman Sachs Group, L.P.
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2. CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP
(a) [ ]
(b) [ ]
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3. SEC USE ONLY
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4. SOURCE OF FUNDS
WC
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5. CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT
TO ITEMS 2(D) OR 2(E)
[ ]
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6. CITIZENSHIP OR PLACE OF ORGANIZATION
Delaware
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Number of 7. SOLE VOTING POWER
Shares 334
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Beneficially 8. SHARED VOTING POWER
Owned By 1,863,878
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Each 9. SOLE DISPOSITIVE POWER
Reporting 334
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Person With 10. SHARED DISPOSITIVE POWER
1,863,878
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11. AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
1,864,212
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12. CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
CERTAIN SHARES
[ ]
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13. PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
46.4%
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14. TYPE OF REPORTING PERSON
HC; PN
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PAGE 3 OF 8 PAGES
<PAGE>
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CUSIP NO. 457659704
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1. NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
Goldman, Sachs & Co.
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2. CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP
(a) [ ]
(b) [ ]
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3. SEC USE ONLY
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4. SOURCE OF FUNDS
WC
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5. CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT
TO ITEMS 2(D) OR 2(E)
[X]
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6. CITIZENSHIP OR PLACE OF ORGANIZATION
Delaware
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Number of 7. SOLE VOTING POWER
Shares -0-
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Beneficially 8. SHARED VOTING POWER
Owned By 1,863,878
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Each 9. SOLE DISPOSITIVE POWER
Reporting -0-
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Person With 10. SHARED DISPOSITIVE POWER
1,863,878
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11. AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
1,863,878
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12. CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
CERTAIN SHARES
[ ]
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13. PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
46.4%
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14. TYPE OF REPORTING PERSON
BD; PN; IA
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PAGE 4 OF 8 PAGES
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AMENDMENT NO. 10 TO
SCHEDULE 13D
RELATING TO THE COMMON STOCK OF
INSILCO CORPORATION
Water Street Corporate Recovery Fund I, L.P. ("Water Street"),
Goldman, Sachs & Co. ("Goldman Sachs") and The Goldman Sachs Group, L.P. ("GS
Group" and, collectively with Water Street and Goldman Sachs, the "Reporting
Persons")* hereby file this Amendment No. 10 (this "Amendment No. 10") to the
Statement on Schedule 13D filed with respect to the Common Stock, par value
$.001 per share (the "Common Stock"), of Insilco Corporation, a Delaware
corporation (the "Company"), as most recently amended by Amendment No. 9 thereto
dated March 24, 1998 (as amended, the "Schedule 13D"). Unless otherwise
indicated, all capitalized terms not otherwise defined herein shall have the
same meanings as those set forth in the Schedule 13D.
This Amendment No. 10 is being filed to report the exercise of
options to purchase shares of Common Stock beneficially owned by the
Reporting Persons.
Item 3. Source and Amount of Funds or Other Consideration.
Item 3 is hereby amended and supplemented as follows:
On April 1, 1998, options to purchase 80,000 shares of Common Stock
beneficially owned by the Reporting Persons (the "Stock Options") were
exercised. $1,880,000 of available working capital funds were used for the
exercise of the Stock Options, $680,000 to acquire 40,000 shares at an exercise
price of $17.00 per share and $1,200,000 to acquire 40,000 shares at an exercise
price of $30.00 per share.
Item 4. Purpose of Transaction.
Item 4 is hereby amended and supplemented as follows:
As described in Item 3 of this Amendment No. 10, on April 1, 1998, the Stock
Options, which were scheduled to expire on April 2, 1998, were exercised.
Item 5. Interest in Securities of the Issuer.
Item 5(a) is hereby amended and restated as follows:
(a) As of the date hereof, Water Street beneficially owns an
aggregate of 1,863,878 shares of Common Stock. Based upon the foregoing, Water
Street beneficially owns approximately 46.4% of the Common Stock reported by the
Company to be outstanding as of March 24, 1998 (as represented by the Company in
the Merger Agreement).
As of the date hereof, GS Group owns an aggregate of 334 shares of
Common Stock and, in addition, each of GS Group and Goldman Sachs may be deemed
to be the beneficial owner of the 1,863,878 shares of Common Stock beneficially
owned by Water Street, representing in the aggregate approximately 46.4% of the
outstanding Common Stock. Each of
__________________________
* Neither the present filing nor anything contained herein shall be construed as
an admission that Water Street, Goldman Sachs or GS Group constitute a "person"
for any purpose other than Section 13(d) of the Securities Exchange Act of 1934,
as amended (the "Exchange Act"), or that Water Street, Goldman Sachs and GS
Group constitute a "group" for any purpose.
PAGE 5 OF 8 PAGES
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GS Group and Goldman Sachs disclaims beneficial ownership of the shares of
Common Stock held by Water Street to the extent the partnership interests in
Water Street are held by persons other than GS Group, Goldman Sachs or their
affiliates. To the knowledge of the Reporting Persons, each of the persons
listed on Schedule I owns 167 shares of Common Stock. Each of the Reporting
Persons disclaims beneficial ownership with respect to such shares.
Item 5(c) is hereby amended and supplemented as follows:
(c) Except for the exercise of the Stock Options described
herein, there have been no transactions in the Common Stock by the persons named
in Item 5(a) hereto since the filing of Amendment No. 9 to this Schedule 13D.
Item 7. Material to be Filed as Exhibits.
Item 7 is hereby amended and supplemented by adding thereto the
following:
(13) Engagement Letter, dated as of March 23, 1998, between
Insilco Corporation and Goldman Sachs.
PAGE 6 OF 8 PAGES
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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.
WATER STREET CORPORATE RECOVERY FUND
I, L.P.
By: Goldman, Sachs & Co., its General
Partner
By: /s/ Richard A. Friedman
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Name: Richard A. Friedman
Title: Managing Director
GOLDMAN, SACHS & CO.
By: /s/ Richard A. Friedman
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Name: Richard A. Friedman
Title: Managing Director
THE GOLDMAN SACHS GROUP, L.P.
By: The Goldman Sachs Corporation,
its general partner
By: /s/ Richard A. Friedman
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Name: Richard A. Friedman
Title: Executive Vice
President
Dated: April 6, 1998
PAGE 7 OF 8 PAGES
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INDEX TO EXHIBITS
Exhibit No. Exhibit Page
(13) Engagement Letter, dated as of March 23, 1998, between
Insilco Corporation and Goldman Sachs.
PAGE 8 OF 8 PAGES
EXHIBIT 13
[GOLDMAN, SACHS & CO. LETTERHEAD]
PERSONAL AND CONFIDENTIAL
March 23, 1998
Robert L. Smialek
Chairman, President and CEO
Insilco Corporation
425 Metro Place North, 5th Floor
Dublin, Ohio 43017
Dear Bob:
We refer to the engagement letter dated November 27, 1996 between Insilco
Corporation (the "Company") and Goldman, Sachs & Co. ("Goldman Sachs") regarding
the possible sale of all or a portion of the Company (the "Engagement Letter"),
as amended by two letters dated July 10, 1997. This letter is intended to amend
and confirm certain mutual understandings with respect to our acting as your
financial advisor in connection with the sale of the Company to Silkworm
Acquisition Corporation, an affiliate of DLJ Merchant Banking Partners II, Inc.
(the "Transaction"), as contemplated by the Engagement Letter.
We will charge a transaction fee of $2,000,000 for advice in connection with the
Transaction, which shall be payable in cash upon consummation of the
Transaction. We hereby confirm our mutual understanding that the third through
the eighth paragraphs of the Engagement Letter shall be inapplicable to the
Transaction. The Engagement Letter shall otherwise remain in effect with respect
to the transactions contemplated thereby, provided that the Engagement Letter
shall be terminated on payment of the transaction fee described above, and the
Company shall have no further fee obligations to Goldman Sachs pursuant to such
Engagement Letter.
In connection with engagements such as this it is our firm policy to receive
indemnification. The Company agrees that the provisions with respect to our
indemnity and other matters set forth in Annex A of the Engagement Letter shall
apply to our engagement pursuant to this letter and any matter contemplated
hereby, subject to the qualifications set forth in the twelfth paragraph of the
Engagement Letter.
<PAGE>
Insilco Corporation
March 23, 1998
Page Two
Please confirm that the foregoing is in accordance with your understanding by
signing and returning to us the enclosed copy of this letter, which shall become
a binding agreement upon our receipt.
Very truly yours, Confirmed:
/s/ Goldman, Sachs & Co.
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(GOLDMAN, SACHS & CO.) INSILCO CORPORATION
By: /s/ Robert L. Smialek
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Name: Robert L. Smialek
Title: President & Chief
Executive Officer
Date: 26 March, 1998
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