<PAGE>
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
SCHEDULE 13D
Under the Securities Exchange Act of 1934
(Amendment No. 3)*
The TesseracT Group, Inc. (f/k/a Education Alternatives, Inc.)
(Name of Issuer)
Common Stock, par value $.01 per share
(Title of Class of Securities)
881612 10 5
(CUSIP Number)
Benjamin Nazarian
Pioneer Venture Fund, L.L.C.
2000 Pasadena Avenue
Los Angeles, California
(213) 223-1114
(Name, Address and Telephone Number of
Person Authorized to Receive Notices and Communications)
- with a copy to -
Thomas M. Cerabino, Esq.
Willkie Farr & Gallagher
787 Seventh Avenue
New York, New York 10019-6099
June 2, 1998
(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 ss.ss. 240.13d-1(e), 240.13d-1(f) or 240.13d-1(g), check the
following box o.
Note: Schedules filed in paper format shall include a signed original and five
copies of the schedule, including all exhibits. See ss. 240.13d-7(b), 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).
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SCHEDULE 13D
- -----------------------------------------
CUSIP No. 881612 10 5
- -----------------------------------------
- --------------------------------------------------------------------------------
1 NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
Pioneer Venture Fund, L.L.C.
- --------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) [ ]
(b) [ ]
- --------------------------------------------------------------------------------
3 SEC USE ONLY
- --------------------------------------------------------------------------------
4 SOURCE OF FUNDS*
AF, OO
- --------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDING IS REQUIRED PURSUANT TO
ITEMS 2(d) or 2(e)
[ ]
- --------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
Delaware
- --------------------------------------------------------------------------------
7 SOLE VOTING POWER
NUMBER OF
SHARES 0
BENEFICIALLY
-----------------------------------------------------------------
OWNED BY 8 SHARED VOTING POWER
EACH
REPORTING 311,500
PERSON
WITH
-----------------------------------------------------------------
9 SOLE DISPOSITIVE POWER
0
-----------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
311,500
- --------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH PERSON
311,500
- --------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES*
[ ]
- --------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
3.3%
- --------------------------------------------------------------------------------
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.
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SCHEDULE 13D
- -----------------------------------------
CUSIP No. 881612 10 5
- -----------------------------------------
- --------------------------------------------------------------------------------
1 NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
Union Communications Company
- --------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) [ ]
(b) [ ]
- --------------------------------------------------------------------------------
3 SEC USE ONLY
- --------------------------------------------------------------------------------
4 SOURCE OF FUNDS*
OO
- --------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDING IS REQUIRED PURSUANT TO
ITEMS 2(d) or 2(e) [ ]
- --------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
California
- --------------------------------------------------------------------------------
7 SOLE VOTING POWER
NUMBER OF
SHARES 0
BENEFICIALLY
-----------------------------------------------------------------
OWNED BY 8 SHARED VOTING POWER
EACH
REPORTING 309,500
PERSON
WITH
-----------------------------------------------------------------
9 SOLE DISPOSITIVE POWER
0
-----------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
309,500
- --------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH PERSON
309,500
- --------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES*
[ ]
- --------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
3.2%
- --------------------------------------------------------------------------------
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. 881612 10 5
- -----------------------------------------
- --------------------------------------------------------------------------------
1 NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
Benjamin Nazarian
- --------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) [ ]
(b) [ ]
- --------------------------------------------------------------------------------
3 SEC USE ONLY
- --------------------------------------------------------------------------------
4 SOURCE OF FUNDS*
OO
- --------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDING IS REQUIRED PURSUANT TO
ITEMS 2(d) or 2(e) [ ]
- --------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
United States
- --------------------------------------------------------------------------------
7 SOLE VOTING POWER
NUMBER OF
SHARES 80,000
BENEFICIALLY
-----------------------------------------------------------------
OWNED BY 8 SHARED VOTING POWER
EACH
REPORTING 621,000
PERSON
WITH
-----------------------------------------------------------------
9 SOLE DISPOSITIVE POWER
80,000
-----------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
661,000
- --------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH PERSON
741,000
- --------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES*
[ ]
- --------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
7.8%
- --------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
IN
- --------------------------------------------------------------------------------
*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. 881612 10 5
- -----------------------------------------
- --------------------------------------------------------------------------------
1 NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
Dr. Pejman Salimpour
- --------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) [ ]
(b) [ ]
- --------------------------------------------------------------------------------
3 SEC USE ONLY
- --------------------------------------------------------------------------------
4 SOURCE OF FUNDS*
OO
- --------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDING IS REQUIRED PURSUANT TO
ITEMS 2(d) or 2(e) [ ]
- --------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
United States
- --------------------------------------------------------------------------------
7 SOLE VOTING POWER
NUMBER OF
SHARES 40,000
BENEFICIALLY
-----------------------------------------------------------------
OWNED BY 8 SHARED VOTING POWER
EACH
REPORTING 0
PERSON
WITH
-----------------------------------------------------------------
9 SOLE DISPOSITIVE POWER
0
-----------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
40,000
- --------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH PERSON
40,000
- --------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES*
[ ]
- --------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
0.4%
- --------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
IN
- --------------------------------------------------------------------------------
*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>
This Amendment No. 3 ("Amendment No. 3") amends the Schedule 13D (as
amended, the "Schedule 13D") filed by the Reporting Persons on September 22,
1997, as amended by Amendment No. 1 thereto ("Amendment No. 1") filed by the
Reporting Persons on February 5, 1998 and Amendment No. 2 thereto ("Amendment
No. 2") filed by the Reporting Persons on March 9, 1998, and is being filed
pursuant to Rule 13d-2 promulgated under the Exchange Act to reflect a
material acquisition of beneficial ownership of the Common Stock. Unless
otherwise indicated, all capitalized terms used but not defined herein shall
have the same meaning as set forth in the Schedule 13D.
Item 3. Source and Amount of Funds or Other Consideration.
--------------------------------------------------
Item 3 of the Schedule 13D is hereby amended in its entirety as follows:
The total amount of funds required by PVF to purchase the Shares it owns
directly was $1,724,453 and was furnished from (i) a loan from UCC in the amount
of $500,000, as evidenced by a promissory note, a copy of which is attached
hereto as Exhibit 2 and is incorporated herein by reference, (ii) a loan from
UCC in the amount of $520,000, as evidenced by a promissory note, a copy of
which is attached hereto as Exhibit 3 and is incorporated herein by reference,
and (iii) margin loans from Prudential Securities Incorporated ("Prudential")
and BT Alex. Brown Incorporated (formerly known as Alex. Brown & Sons
Incorporated, "BT Alex. Brown"), made by Prudential and BT Alex. Brown in the
ordinary course of their respective businesses. Copies of the Margin Agreements
between PVF and each of Prudential and BT Alex. Brown are attached hereto as
Exhibits 4 and 12, respectively, and are incorporated herein by reference.
The total amount of funds required by UCC to purchase the Shares it owns
directly was $1,430,780 and was furnished from margin loans from Prudential,
Lehman Brothers Inc. ("Lehman") and BT Alex. Brown, made by Prudential, Lehman
and BT Alex. Brown in the ordinary course of their respective businesses. Copies
of the Margin Agreements between UCC and each of Prudential, Lehman and BT Alex.
Brown are attached hereto as Exhibits 5(a), 5(b) and 12 respectively, and are
incorporated herein by reference.
The total amount of funds required by Nazarian to purchase the Shares he
owns directly was $394,753 and was furnished from margin loans from Lehman, made
by Lehman in the ordinary course of its business. A copy of the Margin Agreement
between Nazarian and Lehman is attached hereto as Exhibit 6 and is incorporated
herein by reference.
6
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The total amount of funds required by Salimpour to purchase the Shares he
owns directly was $228,750 and was furnished from margin loans from Prudential,
made by Prudential in the ordinary course of its business. A copy of the Margin
Agreement between Salimpour and Prudential is attached hereto as Exhibit 7 and
is incorporated herein by reference.
Item 5. Interest in Securities of the Issuer.
-------------------------------------
Items 5(a) and 5(b) of the Schedule 13D are hereby amended in their
entirety to read as follows:
(a) The Reporting Persons beneficially own an aggregate of 741,000
Shares. Based on information contained in the Company's Quarterly Report on Form
10-Q for the quarter ended March 31, 1998 filed with the Securities and Exchange
Commission, the Shares held by the Reporting Persons represent approximately
7.8% of the outstanding Shares.
PVF beneficially owns 311,500 Shares, representing approximately 3.3% of
the outstanding Shares. Each of Amendment No. 1 and Amendment No. 2
inadvertently reported PVF as beneficially owning 10,000 more Shares than it
actually beneficially owned on the date of such Amendments. UCC beneficially
owns 309,500 Shares, representing approximately 3.2% of the outstanding Shares.
Nazarian directly owns 80,000 Shares, representing approximately 0.8% of the
outstanding Shares. Salimpour beneficially owns 40,000 Shares, representing
approximately 0.4% of the outstanding Shares.
By reason of the control Nazarian exercises with respect to the
investments of PVF and UCC, as described in Item 6, Nazarian may be deemed under
Rule 13d-3 ("Rule 13d-3") under the Securities Exchange Act of 1934 (the
"Exchange Act") to own beneficially all of the Shares owned by PVF and UCC. By
reason of a limited power of attorney executed by Salimpour giving Nazarian
certain powers as described in Item 6, Nazarian may be deemed under Rule 13d-3
to own beneficially all of the Shares which Salimpour beneficially owns. Thus,
Nazarian may be deemed to have beneficial ownership of 741,000 Shares,
representing approximately 7.8% of the outstanding Shares. As a result of the
error in reporting PVF's beneficial ownership of Shares described above, each of
Amendment No. 1 and Amendment No. 2 inadvertently reported that Nazarian may
have been deemed to have the beneficial ownership of 10,000 more Shares than he
actually may have been deemed to own at the date of such Amendment.
(b) Each of PVF and UCC share with Nazarian the power to vote or to
direct the vote and the power to dispose or to direct the disposition of the
Shares owned directly by them. Nazarian
7
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shares the power to dispose or to direct the disposition of the 40,000 Shares
owned directly by Salimpour. Salimpour has the sole power to vote or to direct
the vote of the 40,000 Shares owned directly by him.
(c) Item 5(c) of the Schedule 13D is hereby amended to add the listing of
all transactions in the Common Stock effected by the Reporting Persons within
the 60-day period prior to June 2, 1998. Such listing is set forth on the
attached Exhibit 14, which is incorporated herein by reference. All transactions
listed were made through brokers in open market transactions effected on the
Nasdaq National Market.
Item 7. Material to be Filed as Exhibits.
---------------------------------
Item 7 of the Schedule 13D is hereby amended to add the following
exhibits:
Exhibit 14 Schedule of transactions in the Common Stock by the
Reporting Persons within the 60-day period prior to
June 2, 1998.
8
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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.
Dated: June 5, 1998
PIONEER VENTURE FUND, L.L.C.
By:/s/ Benjamin Nazarian
-------------------------------
Name: Benjamin Nazarian
Title: Manager
UNION COMMUNICATIONS COMPANY
By: *
-------------------------------
Name: Parviz Nazarian
Title: General Partner
/s/ Benjamin Nazarian
-------------------------------
Benjamin Nazarian
*
-------------------------------
Dr. Pejman Salimpour
* By: /s/ Benjamin Nazarian
----------------------------
Benjamin Nazarian
Attorney-in-Fact
9
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Exhibit 14
Schedule of transactions in the Common Stock
by the Reporting Persons within
the 60-day period prior to June 2, 1998
(i) PVF
Number of Price
Shares Per
Date Purchased Share(a)
---- --------- --------
4/3/98 35,000 $ 6.10
4/6/98 7,500 $ 6.27
4/7/98 2,500 $ 6.31
(ii) UCC
Number of Price
Shares Per
Date Purchased Share(a)
---- --------- --------
5/20/98 10,000 $ 5.81
6/1/98 15,000 $ 5.25
6/2/98 25,000 $ 5.25
(iii) Nazarian
Number of Price
Shares Per
Date Purchased Share(a)
---- --------- --------
5/14/98 5,000 $ 5.81
(iv) Salimpour
Number of Price
Shares Per
Date Purchased Share(a)
---- --------- --------
5/11/98 20,000 $ 5.81
Note:
(a) Price does not include commission.
