<PAGE>
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
------------
SCHEDULE 13D
(RULE 13D-101)
INFORMATION TO BE INCLUDED IN STATEMENTS FILED PURSUANT TO 13D-1(A)
AND AMENDMENTS THERETO FILED PURSUANT TO 13D-2(A)
(AMENDMENT NO. 3 )/1/
The Right Start, Inc.
-----------------------------------------------------------------------------
(Name of Issuer)
Common Stock, no par value
-----------------------------------------------------------------------------
(Title of Class of Securities)
766574107
-----------------------------------------------------------------------------
(CUSIP Number)
Victor I. Chang, Esq. (617) 248-7000
c/o Testa, Hurwitz & Thibeault, LLP, High Street Tower, 125 High Street,
Boston, MA 02110
-----------------------------------------------------------------------------
(Name, Address and Telephone Number of Person
Authorized to Receive Notices and Communications)
December 28, 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 Rule 13d-1(b)(3) or (4), check the following box [_].
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.
______________________
/1/ 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 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>
SCHEDULE 13D
- -----------------------
CUSIP NO. 766574107
- -----------------------
- ------------------------------------------------------------------------------
NAME OF REPORTING PERSON
1 S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
Edward L. Cahill
- ------------------------------------------------------------------------------
CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP*
2 (a) [_]
(b) [X]
- ------------------------------------------------------------------------------
SEC USE ONLY
3
- ------------------------------------------------------------------------------
SOURCE OF FUNDS*
4
AF
- ------------------------------------------------------------------------------
CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT
TO ITEMS 2(d) or 2(e) [_]
5
- ------------------------------------------------------------------------------
CITIZENSHIP OR PLACE OF ORGANIZATION
6
USA
- ------------------------------------------------------------------------------
SOLE VOTING POWER
7
NUMBER OF -0-
SHARES -----------------------------------------------------------
SHARED VOTING POWER
BENEFICIALLY 8
746,667
OWNED BY
-----------------------------------------------------------
EACH SOLE DISPOSITIVE POWER
9
REPORTING -0-
PERSON -----------------------------------------------------------
SHARED DISPOSITIVE POWER
WITH 10
746,667
- ------------------------------------------------------------------------------
AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
11
746,667
- ------------------------------------------------------------------------------
CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES*
12
[_]
- ------------------------------------------------------------------------------
PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
13
6.93%
- ------------------------------------------------------------------------------
TYPE OF REPORTING PERSON*
14
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. 766574107
- -----------------------
- ------------------------------------------------------------------------------
NAME OF REPORTING PERSON
1 S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
David L. Warnock
- ------------------------------------------------------------------------------
CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP*
2 (a) [_]
(b) [X]
- ------------------------------------------------------------------------------
SEC USE ONLY
3
- ------------------------------------------------------------------------------
SOURCE OF FUNDS*
4
AF
- ------------------------------------------------------------------------------
CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT
TO ITEMS 2(d) or 2(e) [_]
5
- ------------------------------------------------------------------------------
CITIZENSHIP OR PLACE OF ORGANIZATION
6
USA
- ------------------------------------------------------------------------------
SOLE VOTING POWER
7
NUMBER OF -0-
SHARES -----------------------------------------------------------
SHARED VOTING POWER
BENEFICIALLY 8
746,667
OWNED BY
-----------------------------------------------------------
EACH SOLE DISPOSITIVE POWER
9
REPORTING -0-
PERSON -----------------------------------------------------------
SHARED DISPOSITIVE POWER
WITH 10
746,667
- ------------------------------------------------------------------------------
AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
11
746,667
- ------------------------------------------------------------------------------
CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES*
12
[_]
- ------------------------------------------------------------------------------
PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
13
6.93%
- ------------------------------------------------------------------------------
TYPE OF REPORTING PERSON*
14
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. 766574107
- -----------------------
- ------------------------------------------------------------------------------
NAME OF REPORTING PERSON
1 S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
Cahill, Warnock Strategic Partners L.P.
IRSN: 52-1970604
- ------------------------------------------------------------------------------
CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP*
2 (a) [_]
(b) [X]
- ------------------------------------------------------------------------------
SEC USE ONLY
3
- ------------------------------------------------------------------------------
SOURCE OF FUNDS*
4
AF
- ------------------------------------------------------------------------------
CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT
TO ITEMS 2(d) or 2(e) [_]
5
- ------------------------------------------------------------------------------
CITIZENSHIP OR PLACE OF ORGANIZATION
6
Delaware Limited Partnership
- ------------------------------------------------------------------------------
SOLE VOTING POWER
7
NUMBER OF
-0-
SHARES -----------------------------------------------------------
SHARED VOTING POWER
BENEFICIALLY 8
OWNED BY 746,667
-----------------------------------------------------------
EACH SOLE DISPOSITIVE POWER
9
REPORTING
-0-
PERSON -----------------------------------------------------------
SHARED DISPOSITIVE POWER
WITH 10
746,667
- ------------------------------------------------------------------------------
AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
11
746,667
- ------------------------------------------------------------------------------
CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES*
12
[_]
- ------------------------------------------------------------------------------
PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
13
6.93%
- ------------------------------------------------------------------------------
TYPE OF REPORTING PERSON*
14
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. 766574107
- -----------------------
- ------------------------------------------------------------------------------
NAME OF REPORTING PERSON
1 S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
Cahill, Warnock Strategic Partners Fund, L.P.
IRSN: 52-1970619
- ------------------------------------------------------------------------------
CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP*
2 (a) [X]
(b) [_]
- ------------------------------------------------------------------------------
SEC USE ONLY
3
- ------------------------------------------------------------------------------
SOURCE OF FUNDS*
4
WC
- ------------------------------------------------------------------------------
CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT
TO ITEMS 2(d) or 2(e) [_]
5
- ------------------------------------------------------------------------------
CITIZENSHIP OR PLACE OF ORGANIZATION
6
Delaware Limited Partnership
- ------------------------------------------------------------------------------
SOLE VOTING POWER
7
NUMBER OF
-0-
SHARES -----------------------------------------------------------
SHARED VOTING POWER
BENEFICIALLY 8
OWNED BY 746,667
-----------------------------------------------------------
EACH SOLE DISPOSITIVE POWER
9
REPORTING
-0-
PERSON -----------------------------------------------------------
SHARED DISPOSITIVE POWER
WITH 10
746,667
- ------------------------------------------------------------------------------
AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
11
746,667
- ------------------------------------------------------------------------------
CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES*
12
[_]
- ------------------------------------------------------------------------------
PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
13
6.93%
- ------------------------------------------------------------------------------
TYPE OF REPORTING PERSON*
14
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. 766574107
- ----------------------- ---------------------
- ------------------------------------------------------------------------------
NAME OF REPORTING PERSON
1 S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
Cahill, Warnock & Company, LLC
IRSN: 52-1931617
- ------------------------------------------------------------------------------
CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP*
2 (a) [_]
(b) [X]
- ------------------------------------------------------------------------------
SEC USE ONLY
3
- ------------------------------------------------------------------------------
SOURCE OF FUNDS*
4
AF
- ------------------------------------------------------------------------------
CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT
TO ITEMS 2(d) or 2(e) [_]
5
- ------------------------------------------------------------------------------
CITIZENSHIP OR PLACE OF ORGANIZATION
6
Maryland Limited Liability Company
- ------------------------------------------------------------------------------
SOLE VOTING POWER
7
NUMBER OF -0-
SHARES -----------------------------------------------------------
SHARED VOTING POWER
BENEFICIALLY 8
746,667
OWNED BY
-----------------------------------------------------------
EACH SOLE DISPOSITIVE POWER
9
REPORTING -0-
PERSON -----------------------------------------------------------
SHARED DISPOSITIVE POWER
WITH 10
746,667
- ------------------------------------------------------------------------------
AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
11
746,667
- ------------------------------------------------------------------------------
CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES*
12
[_]
- ------------------------------------------------------------------------------
PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
13
6.93%
- ------------------------------------------------------------------------------
TYPE OF REPORTING PERSON*
14
oo
- ------------------------------------------------------------------------------
*SEE INSTRUCTIONS BEFORE FILLING OUT!
<PAGE>
SCHEDULE 13D
- ----------------------- ---------------------
CUSIP NO. 766574107
- ----------------------- ---------------------
- ------------------------------------------------------------------------------
NAME OF REPORTING PERSON
1 S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
Strategic Associates, L.P.
IRSN: 52-1991689
- ------------------------------------------------------------------------------
CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP*
2 (a) [X]
(b) [_]
- ------------------------------------------------------------------------------
SEC USE ONLY
3
- ------------------------------------------------------------------------------
SOURCE OF FUNDS*
4
WC
- ------------------------------------------------------------------------------
CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT
TO ITEMS 2(d) or 2(e) [_]
5
- ------------------------------------------------------------------------------
CITIZENSHIP OR PLACE OF ORGANIZATION
6
Delaware Limited Partnership
- ------------------------------------------------------------------------------
SOLE VOTING POWER
7
NUMBER OF -0-
SHARES -----------------------------------------------------------
SHARED VOTING POWER
BENEFICIALLY 8
746,667
OWNED BY
-----------------------------------------------------------
EACH SOLE DISPOSITIVE POWER
9
REPORTING -0-
PERSON -----------------------------------------------------------
SHARED DISPOSITIVE POWER
WITH 10
746,667
- ------------------------------------------------------------------------------
AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
11
746,667
- ------------------------------------------------------------------------------
CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES*
12
[_]
- ------------------------------------------------------------------------------
PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
13
6.93%
- ------------------------------------------------------------------------------
TYPE OF REPORTING PERSON*
14
PN
- ------------------------------------------------------------------------------
*SEE INSTRUCTIONS BEFORE FILLING OUT!
<PAGE>
This Schedule 13D Amendment No. 3 ("Amendment No. 3") is an amendment to
the Schedule 13D (filed on October 21, 1996, hereafter the "Original Schedule
13D"), the Amendment No. 1 to the Original Schedule 13D (filed on May 16, 1997,
hereafter the "Amendment No. 1"), and the Amendment No. 2 to the Original
Schedule 13D and Amendment No. 1 (filed on June 6, 1997, hereafter the
"Amendment No. 2"), which were filed with the Securities and Exchange Commission
("SEC") on behalf of Cahill, Warnock Strategic Partners Fund, L.P. ("Strategic
Partners Fund"), Cahill, Warnock Strategic Partners, L.P. ("Strategic
Partners"), Strategic Associates, L.P. ("Strategic Associates"), Cahill, Warnock
& Company, LLC ("Cahill, Warnock & Co."), Edward L. Cahill ("Cahill") and David
L. Warnock ("Warnock").
Strategic Partners Fund, Strategic Partners, Strategic Associates, Cahill,
Warnock & Co., Cahill and Warnock are sometimes referred to collectively herein
as the "Reporting Persons."
The Right Start, Inc., a California corporation, is referred to herein as
the "Issuer."
Unless otherwise noted, the information contained in this Amendment No. 3
amends and supplements the information previously disclosed in the Original
Schedule 13D, the Amendment No. 1 and the Amendment No. 2 filed on behalf of the
Reporting Persons.
ITEM 3. SOURCE AND AMOUNT OF FUNDS OR OTHER CONSIDERATION:
As previously disclosed in the Original Schedule 13D, the Amendment No. 1
and the Amendment No. 2, Strategic Partners Fund was the record owner of: (i) 8%
Convertible Debentures due May 31, 2002 in the principal amount of $2,842,500
(the "Strategic Fund 8% Debentures"), (ii) 11.5% Senior Subordinated Debentures
in the principal May 6, 2000 in the principal amount of $947,500 (the "Strategic
Fund 11.5% Debentures"), and (iii) warrants to purchase up to 150,000 shares of
the Issuer's common stock (the "Strategic Fund Warrants"). On September 4, 1997,
Strategic Partners Fund purchased 75,800 shares of the Issuer's common stock, at
a purchase price of $2.50 per share (the "Strategic Fund Common Shares"). On
December 28, 1998, pursuant to the terms and conditions of the Letter Agreement
dated as of April 6, 1998 (the "Letter Agreement," filed and attached as
Exhibit 2 hereto), the Amendment to the Letter Agreement dated as of April 13,
- ---------
1998 (the "Letter Agreement Amendment," filed as Exhibit 3 hereto), and the
---------
Securities Purchase Agreement dated as of April 13, 1998 among the Issuer and
certain investors listed therein (the "Securities Purchase Agreement," filed
as Exhibit 4 hereto), Strategic Partners Fund (i) exchanged the Strategic Fund
---------
8% Debentures for 28,425 shares of the Issuer's Series A Preferred Stock, par
value $.01 per share (the "Strategic Fund Series A Shares") and (ii) exchanged
the Strategic Fund 11.5% Debentures and the Strategic Fund Warrants for 9,475
shares of the Issuer's Series B Preferred Stock, par value $.01 per share (the
"Strategic Fund Series B Shares"). The working capital of Strategic Partners
Fund was the source of funds for the acquisition of the Strategic Fund 8%
Debentures, the Strategic Fund 11.5% Debentures, the Strategic Fund Warrants and
the Strategic Fund Common Shares. No funds or other consideration was borrowed
or otherwise obtained for the purpose of acquiring, holding, trading or voting
the Strategic Fund 8% Debentures, the Strategic Fund 11.5% Debentures, the
Strategic Fund Warrants, the Strategic Fund Common Shares, the Strategic Fund
Series A Shares or the Strategic Fund Series B Shares.
As previously disclosed in the Original Schedule 13D, the Amendment No. 1
and the Amendment No. 2, Strategic Associates was the record owner of: (i) 8%
Convertible Debentures due May 31, 2002 in the principal amount of $157,500 (the
"Strategic Associates 8% Debentures"), (ii) 11.5% Senior Subordinated Debentures
<PAGE>
due May 6, 2000 in the principal amount of $52,500 (the "Strategic Associates
11.5% Debentures"), and (iii) warrants to purchase up to 8,233 shares of the
Issuer's common stock (the "Strategic Associates Warrants"). On September 4,
1997, Strategic Associates purchased 4,200 shares of the Issuer's common stock
at a purchase price of $2.50 per share (the "Strategic Associates Common
Shares"). On December 28, 1998, pursuant to the terms and conditions of the
Letter Agreement, the Letter Agreement Amendment and the Securities Purchase
Agreement, Strategic Associates (i) exchanged the Strategic Associates 8%
Debentures for 1,575 shares of the Issuer's Series A Preferred Stock, par value
$.01 per share (the "Strategic Associates Series A Shares") and (ii) exchanged
the Strategic Associates 11.5% Debentures and the Strategic Associates Warrants
for 525 shares of the Issuer's Series B Preferred Stock, par value $.01 per
share (the "Strategic Associates Series B Shares"). The working capital of
Strategic Partners Fund was the source of funds for the acquisition of the
Strategic Associates 8% Debentures, the Strategic Associates 11.5% Debentures,
the Strategic Associates Warrants and the Strategic Associates Common Shares. No
funds or other consideration was borrowed or otherwise obtained for the purpose
of acquiring, holding, trading or voting the Strategic Associates 8% Debentures,
the Strategic Associates 11.5% Debentures, the Strategic Associates Warrants,
the Strategic Associates Common Shares, the Strategic Associates Series A Shares
or the Strategic Associates Series B Shares.
ITEM 5. INTEREST IN THE SECURITIES OF THE ISSUER:
(a) Strategic Partners Fund is the record owner of the Strategic Fund
Series A Shares, the Strategic Fund Series B Shares and the Strategic Fund
Common Shares. The Strategic Fund Series B Shares are currently convertible into
631,667 shares of the Issuer's common stock (the "Strategic Fund Conversion
Shares").
Strategic Associates is the record owner of the Strategic Associates Series
A Shares, the Strategic Associates Series B Shares and the Strategic Associates
Common Shares. The Strategic Associates Series B shares are currently
convertible into 35,000 shares of the Issuer's common stock (the "Strategic
Associates Conversion Shares").
The Strategic Fund Conversion Shares, the Strategic Fund Common Shares, the
Strategic Associates Conversion Shares and the Strategic Associates Common
Shares are collectively referred to herein as the "Right Start Shares."
Because of their relationship as affiliated entities, both Strategic
Partners Fund and Strategic Associates may be deemed to own beneficially the
Right Start Shares. As general partners of Strategic Partners Fund and Strategic
Associates, respectively, Strategic Partners and Cahill, Warnock & Co. May be
deemed to own beneficially the Right Start Shares. As the individual general
partners of Strategic Partners and as the members of Cahill, Warnock & Co., both
Cahill and Warnock may be deemed to own beneficially the Right Start Shares.
Strategic Partners Fund disclaims beneficial ownership of the Strategic
Associates Conversion Shares and the Strategic Associates Common Shares.
Strategic Associates disclaims beneficial ownership of the Strategic Fund
Conversion Shares and the Strategic Fund Common Shares. Strategic Partners,
Cahill, Warnock & Co., Cahill, and Warnock each disclaim beneficial ownership of
the Right Start Shares, except with respect to their pecuniary interest therein,
if any.
Each of the Reporting Persons may be deemed to own beneficially 6.93% of
the Issuer's common stock, which percentage is calculated based upon (i)
10,103,639 shares of the Issuer's common stock reported as
<PAGE>
outstanding by the Issuer in its Quarterly Report on Form 10-Q for the quarterly
period ended October 31, 1998, (ii) the number of Strategic Fund Common Shares
(75,800 shares of the Issuer's common stock) (iii) the number of Strategic
Associates Common Shares (4,200 shares of the Issuer's common stock) and (iv)
the number of shares of the Issuer's common stock issuable upon the conversion
of the Strategic Fund Series B Shares and the Strategic Associates Series B
Shares (666,667 shares of the Issuer's common stock). The above calculation does
not give effect to the 1-for-2 reverse stock split approved by the Issuer's
stockholders on December 15, 1998 with respect to the Issuer's common stock.
In Amendment No. 1 to the Limited Partnership Agreement of Strategic
Partners Fund, dated July 26, 1996 (filed as Exhibit 5 hereto), Strategic
---------
Partners and the limited partners of Strategic Partners Fund agreed that any
securities of a particular issuer that are acquired by both Strategic Partners
Fund and Strategic Associates shall be sold or otherwise disposed of at
substantially the same time, on substantially the same terms and in amounts
proportionate to the size of each of their investments. As a consequence,
Strategic Associates and Strategic Partners Fund may be deemed to be members of
a group pursuant to Rule 13d-5(b)(1) of the Securities Exchange Act of 1934.
Strategic Partners, Cahill, Warnock & Co., Cahill and Warnock each disclaim
membership in the aforementioned group.
(b) Number of shares of the Issuer's common stock as to which each
Reporting Person has
(i) Sole power to vote or direct the vote:
746,667 shares for each Reporting Person;
(ii) Shared power to vote or direct the vote:
746,667 shares for each Reporting Person;
(iii) Sole power to dispose or direct the disposition:
746,667 shares for each Reporting Person;
(iv) Shared power to dispose or to direct the disposition:
746,667 shares for each Reporting Person.
(c) Except as set forth in this Amendment No. 3, none of the Reporting
Persons has effected any transaction in the Issuer's common stock during the
last 60 days.
(d) Not Applicable.
(e) Not Applicable.
ITEM 6. CONTRACTS, ARRANGEMENTS, UNDERSTANDINGS OR RELATIONSHIPS WITH RESPECT
TO THE SECURITIES OF THE ISSUER:
Pursuant to the terms and conditions of the Letter Agreement (filed as
Exhibit 2 hereto), the Letter Agreement Amendment (filed as Exhibit 3 hereto and
- --------- ---------
the Securities Purchase Agreement (filed as Exhibit 4
---------
<PAGE>
hereto), Strategic Partners Fund (i) exchanged the Strategic Fund 8% Debentures
for the Strategic Fund Series A Shares and (ii) exchanged the Strategic Fund
11.5% Debentures and the Strategic Fund Warrants for the Strategic Fund Series B
Shares. The Strategic Fund Series A Shares are non-voting, non-convertible. The
Strategic Fund Series B Shares are currently convertible into 631,667 shares of
the Issuer's common stock.
Pursuant to the terms and conditions of the Letter Agreement (filed as
Exhibit 2 hereto), the Letter Agreement Amendment (filed as Exhibit 3 hereto and
- --------- ---------
the Securities Purchase Agreement (filed as Exhibit 4 hereto), Strategic
---------
Associates (i) exchanged the Strategic Associates 8% Debentures for the
Strategic Associates Series A Shares and (ii) exchanged the Strategic Associates
11.5% Debentures and the Strategic Associates Warrants for the Strategic
Associates Series B Shares. The Strategic Associates Series A Shares are non-
voting, non-convertible. The Strategic Associates Series B shares are currently
convertible into 35,000 shares of the Issuer's common stock.
In Amendment No. 1 to the Limited Partnership Agreement of Strategic
Partners Fund (filed as Exhibit 5 hereto), Strategic Partners and the limited
---------
partners of Strategic Partners Fund agreed that any securities of a particular
issuer that are acquired by both Strategic Partners Fund and Strategic
Associates shall be sold or otherwise disposed of at substantially the same, on
substantially the same terms and in amounts proportionate to the size of each of
their investments.
ITEM 7. MATERIAL TO BE FILED AS EXHIBITS:
Exhibit 1 - Agreement regarding filing of joint Schedule 13D/A.
Exhibit 2 - The Right Start, Inc. Letter Agreement dated as of April 6,
1998. (Filed as Exhibit 10.1 to the Issuer's Current Report on Form 8-K filed as
of April 23, 1998 and incorporated by reference to this filing).
Exhibit 3 - The Right Start, Inc. Amendment to Letter Agreement dated as of
April 13, 1998. (Filed as Exhibit 10.2 to the Issuer's Current Report on Form 8-
K filed as of April 23, 1998 and incorporated by reference to this filing).
Exhibit 4 - The Right Start, Inc. Securities Purchase Agreement dated as of
April 13, 1998 between the Issuer and certain investors listed therein with
respect to the Issuer's Senior Subordinated Notes due May 6, 2000 and warrants
to purchase the Issuer's common stock. (Filed as Exhibit 10.3 to the Issuer's
Current Report on Form 8-K filed as of April 23, 1998 and incorporated by
reference to this filing).
Exhibit 5 - Amendment No. 1 to the Limited Partnership Agreement of
Strategic Partners Fund dated July 26, 1996. (Filed as Exhibit 3 to the Original
Schedule 13D and incorporated by reference to this filing.)
<PAGE>
SCHEDULE 13D
SIGNATURE
After reasonable inquiry and to the best of our knowledge and belief, we
certify that the information set forth in this statement is true, complete and
correct.
Dated: January 7, 1999
/s/ Edward L. Cahill
--------------------------------
Edward L. Cahill
/s/ David L. Warnock
--------------------------------
David L. Warnock
CAHILL, WARNOCK STRATEGIC PARTNERS
FUND, L.P.
By: Cahill, Warnock Strategic Partners,
L.P., its Sole General Partner
By: /s/ Edward L. Cahill
---------------------------------
Edward L. Cahill, General Partner
By: /s/ David L. Warnock
---------------------------------
David L. Warnock, General Partner
CAHILL, WARNOCK STRATEGIC PARTNERS,
L.P.
By: /s/ Edward L. Cahill
-----------------------------------
Edward L. Cahill, General Partner
By: /s/ David L. Warnock
-----------------------------------
David L. Warnock, General Partner
<PAGE>
STRATEGIC ASSOCIATES, L.P.
By: Cahill, Warnock & Co., LLC, its
sole General Partner
By: /s/ Edward L. Cahill
--------------------------------
Edward L. Cahill, Member
By: /s/ David L. Warnock
--------------------------------
David L. Warnock, Member
CAHILL, WARNOCK & CO., LLC
By: /s/ Edward L. Cahill
------------------------------------
Edward L. Cahill, Member
By: /s/ David L. Warnock
------------------------------------
David L. Warnock, Member
EXHIBIT 1
---------
AGREEMENT
Pursuant to Rule 13d-1(k)(1) under the Securities Exchange Act of 1934, the
undersigned hereby agree that only one statement containing the information
required by Schedule 13D need be filed with respect to the ownership by each of
the undersigned of shares of stock of The Right Start, Inc.
This Agreement may be executed in any number of counterparts, each of which
shall be deemed an original.
Executed January 7, 1999.
/s/ Edward L. Cahill
-----------------------------
Edward L. Cahill
/s/ David L. Warnock
-----------------------------
David L. Warnock
<PAGE>
CAHILL, WARNOCK STRATEGIC PARTNERS
FUND, L.P.
By: Cahill, Warnock Strategic Partners,
L.P., its Sole General Partner
By:/s/ Edward L. Cahill
---------------------------------
Edward L. Cahill, General Partner
By:/s/ David L. Warnock
---------------------------------
David L. Warnock, General Partner
CAHILL, WARNOCK STRATEGIC PARTNERS,
L.P.
By: /s/ Edward L. Cahill
-----------------------------------
Edward L. Cahill, General Partner
By: /s/ David L. Warnock
-----------------------------------
David L. Warnock, General Partner
STRATEGIC ASSOCIATES, L.P.
By: Cahill, Warnock & Co., LLC, its
sole General Partner
By: /s/ Edward L. Cahill
-------------------------------
Edward L. Cahill, Member
By: /s/ David L. Warnock
-------------------------------
David L. Warnock, Member
<PAGE>
CAHILL, WARNOCK & CO., LLC
By: /s/ Edward L. Cahill
-----------------------------------
Edward L. Cahill, Member
By: /s/ David L. Warnock
-----------------------------------
David L. Warnock, Member
