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Prospectus Supplement No. 2
Filed Pursuant to 424(b)(3) and (c)
Registration Statement No. 333-15169
PROSPECTUS SUPPLEMENT NO. 2 DATED MAY 6, 1997
TO PROSPECTUS DATED DECEMBER 18, 1996
METRICOM, INC.
$45,000,000
8% Convertible Subordinated Notes Due 2003
and
Shares of Common Stock Issuable Upon Conversion Thereof
This Prospectus Supplement should be read in conjunction with the
Prospectus dated December 18, 1996, as supplemented by Prospectus Supplement
dated January 2, 1997 (the "Prospectus"). The table on pages 28 and 29 of the
Prospectus setting forth information concerning the Selling Securityholders and
the Prospectus Supplement dated January 2, 1997 are superseded by the following
table:
SELLING SECURITYHOLDERS
The following table sets forth the names of the Selling
Securityholders, the number of shares of Common Stock beneficially owned by each
of them as of April 30, 1997 and the principal amount of Notes and number of
Conversion Shares that may be offered pursuant to this Prospectus. This
information is based upon information provided by U.S. Trust Company of
California, N.A., trustee under the Indenture, and by or on behalf of the
Selling Securityholders. The Selling Securityholders may offer all, some or none
of their Notes or Conversion Shares.
<TABLE>
<CAPTION>
SHARES OF COMMON STOCK
BENEFICIALLY OWNED PRIOR NOTES OR CONVERSION
TO OFFERING(1)(3) SHARES BEING OFFERED
----------------------------- ----------------------------
NUMBER OF
PRINCIPAL CONVERSION
NAME NUMBER PERCENT(2) AMOUNT SHARES(3)(4)
- ---- ------ ---------- ------ ------------
<S> <C> <C> <C> <C>
Commonwealth Life Insurance Camden
Nonenhanced............................... 68,728** * $1,000,000 68,728
Global Bermuda Limited Partnership................. 185,567** 1% 2,700,000 185,567
Joseph J. Ritchie.................................. 418,312(5) 3% 2,900,000 199,312
August J. Pelizzi, Jr.............................. 6,872** * 100,000 6,872
Marcia Diamond, Trustee, The Marcia
Diamond Trust of 1995..................... 7,872(6) * 100,000 6,872
Laterman Strategies 90's LP........................ 21,374** * 311,000 21,374
Laterman & Company................................. 14,707** * 214,000 14,707
Offshore Strategies Ltd............................ 36,082** * 525,000 36,082
Lindner Growth Fund................................ 1,861,464(7) 12% 7,500,000 515,463
Lindner Dividend Fund.............................. 1,716,427(7) 11% 15,000,000 1,030,927
Father Schmidt Foundation for Youth................ 6,872** * 100,000 6,872
Lautze & Lautze Accountancy Corp................... 6,872** * 100,000 6,872
RCB Boise General Investment....................... 6,872** * 100,000 6,872
Santa Clara Missions Cemetery...................... 10,309** * 150,000 10,309
St. Mary's Pooled Endowment........................ 17,182** * 250,000 17,182
RCASF High School Teachers Pension................. 13,745** * 200,000 13,745
Pabst Brewing Co................................... 41,237** * 600,000 41,237
SCU Schmidt Foundation............................. 13,745** * 200,000 13,745
San Felipe Del Rio Foundation...................... 6,872** * 100,000 6,872
Lynch Loofbourrow et al Pension.................... 13,745** * 200,000 13,745
McLean Trust....................................... 13,745** * 200,000 13,745
Salesian Society--General.......................... 6,872** * 100,000 6,872
St. Patrick's Seminary--Brd Dir End................ 13,745** * 200,000 13,745
TCW Galileo Convertible Securities Fund............ 14,089** * 205,000 14,089
TCW Convertible Strategy Fund...................... 39,175** * 570,000 39,175
TCW Convertible Value Fund......................... 47,422** * 690,000 47,422
TCW Convertible Value Securities Fund.............. 130,927** 1% 1,905,000 130,927
Cincinnati Bell Telephone Convertible Value Fund... 25,085** * 365,000 25,085
Southern New England Telephone..................... 6,872** * 100,000 6,872
Dow Chemical Retirement Plan....................... 17,182** * 250,000 17,182
</TABLE>
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<TABLE>
<CAPTION>
SHARES OF COMMON STOCK
BENEFICIALLY OWNED PRIOR NOTES OR CONVERSION
TO OFFERING(1)(3) SHARES BEING OFFERED
----------------------------- ----------------------------
NUMBER OF
PRINCIPAL CONVERSION
NAME NUMBER PERCENT(2) AMOUNT SHARES(3)(4)
- ---- ------ ---------- ------ ------------
<S> <C> <C> <C> <C>
Ohio Carpenters' Pension Trust..................... 6,872** * 100,000 6,872
Philip Morris Master Trust......................... 34,364** * 500,000 34,364
State Retirement and Pension Plan of Maryland...... 51,546** * 750,000 51,546
Bechtel Trust & Thrift Plan........................ 6,872** * 100,000 6,872
North Pole Capital Investments Limited............. 34,364** * 500,000 34,364
KA Trading L.P..................................... 74,674** * 1,086,510 74,674
KA Management Limited.............................. 14,672** * 213,490 14,672
Smith Barney Inc................................... 68,728** * 1,000,000 68,728
</TABLE>
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* Less than one percent.
** Represents Conversion Shares.
(1) Beneficial ownership is determined in accordance with the Rules of the
SEC and generally includes voting or investment power with respect to
securities. Except as otherwise indicated by footnote, and subject to
community property laws where applicable, the persons named in the table
have sole voting and investment power with respect to all shares of
Common Stock shown as beneficially owned by them.
(2) Based on 13,600,713 shares of Common Stock outstanding on April 30, 1997
and assuming 3,092,783 Conversion Shares.
(3) Assumes a conversion price of $14.55 per share and a cash payment in
lieu of any fractional interest.
(4) Assuming the conversion of all the Notes and the sale by the Selling
Securityholders of all of the Conversion Shares, (a) none of the Selling
Securityholders will beneficially own shares of Common Stock following
the offering except shares of Common Stock other than Conversion Shares
set forth in notes 5, 6 and 7 below, and (b) none of the Selling
Securityholders will beneficially own more than one percent of the
16,693,496 shares of Common Stock outstanding (based on the number of
shares outstanding on April 30, 1997 and 3,092,783 Conversion Shares)
except Joseph J. Ritchie (1%), Lindner Growth Fund (8%) and Lindner
Dividend Fund (4%).
(5) Includes 219,000 shares of the Company's Common Stock held by Mr.
Ritchie.
(6) Includes 1,000 shares of the Company's Common Stock held by Marcia
Diamond, Trustee, The Marcia Diamond Trust of 1995.
(7) Based on a Schedule 13D filed with the SEC on December 27, 1996 a total
of 4,112,891 shares are held by entities affiliated with Ryback
Management Corporation, which according to a Schedule 13G Amendment
filed with the SEC on August 28, 1996 includes 1,861,464 shares (of
which 515,463 are Conversion Shares) held by Lindner Growth Fund,
1,716,427 shares (of which 1,030,927 are Conversion Shares) held by
Lindner Dividend Fund. Ryback Management Corporation has sole voting and
dispositive power over all of such 4,112,891 shares. Ryback Management
Corporation disclaims beneficial ownership of the shares in which it has
no pecuniary interest.
Other than as set forth in the table, none of the Selling
Securityholders listed above had any material relationship with the Company
other than as a result of ownership of the Notes or Common Stock, within the
three-year period ending on the date of this Prospectus. Additional Selling
Securityholders or other information concerning Selling Securityholders may be
set forth in Supplements to this Prospectus from time to time. Up to $45,000,000
aggregate principal amount of Notes may be offered hereby.
Because the Selling Securityholders may offer all or some of the Notes
that they hold and/or Conversion Shares pursuant to the offering contemplated by
this Prospectus, and because there are currently no agreements, arrangements or
understandings with respect to the sale of any of the Notes or Conversion Shares
by the Selling Securityholders, no estimate can be given as to the principal
amount of Notes or Conversion Shares that will be held by the Selling
Securityholders after completion of this offering.
THE DATE OF THIS PROSPECTUS SUPPLEMENT NO. 2 IS MAY 6, 1997
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