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Prospectus Supplement No. 3
Filed Pursuant to 424(b)(3) and (c)
Registration Statement No. 333-15169
PROSPECTUS SUPPLEMENT NO. 3 DATED JULY 9, 1999
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
Please read this prospectus supplement in conjunction with the prospectus dated
December 18, 1996 (the "Prospectus"). The following table supersedes the table
on pages 28 and 29 of the Prospectus setting forth information concerning the
selling securityholders, the prospectus supplement dated January 2, 1997 and the
prospectus supplement No. 2 dated May 6, 1997:
SELLING SECURITYHOLDERS
The following table sets forth the names of the selling securityholders and the
principal amount of notes and number of conversion shares that may be offered
pursuant to the Prospectus. This table 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 NOTES OR CONVERSION
BENEFICIALLY OWNED PRIOR SHARES BEING
TO OFFERING(1)(3) OFFERED
------------------------- ------------------------------
NUMBER OF
PRINCIPAL CONVERSION
NAME NUMBER PERCENT(2) AMOUNT SHARES(3)(4)
- ---- ----------- ---------- ---------- -----------
<S> <C> <C> <C> <C>
ABN-AMRO Incorporated ............................ 20,618** * 300,000 20,618
Bechtel Trust & Thrift Plan ...................... 6,872** * 100,000 6,872
Cincinnati Bell Telephone Convertible 25,085** * 365,000 25,085
Value Fund ...............................
Commonwealth Life Insurance Camden
Nonenhanced .............................. 68,728** * $ 1,000,000 68,728
Deephaven Market Neutral Trading L.P.............. 28,865** * 420,000 28,865
Deephaven Market Neutral Trading Limited ......... 67,353** * 980,000 67,353
Dow Chemical Retirement Plan ..................... 17,182** * 250,000 17,182
Father Schmidt Foundation for Youth .............. 6,872** * 100,000 6,872
Global Bermuda Limited Partnership ............... 185,567** * 2,700,000 185,567
Greyhound Lines .................................. 6,872** * 100,000 6,872
Helix Convertible Opportunities Fund, Ltd......... 4,124** * 60,000 4,124
Helix Convertible Opportunities, L.P.............. 10,309** * 150,000 10,309
KA Trading L.P.................................... 74,674** * 1,086,510 74,674
KA Management Limited ............................ 14,672** * 213,490 14,672
Laterman Strategies 90's LP....................... 21,374** * 311,000 21,374
Laterman & Company ............................... 14,707** * 214,000 14,707
Lautze & Lautze Accountancy Corp.................. 6,872** * 100,000 6,872
LDG Limited ...................................... 17,182** * 250,000 17,182
Lindner Investments .............................. 1,546,390(7) 7% 22,500,000 1,546,390
Lynch Loofbourrow et al. Pension ................. 13,745** * 200,000 13,745
</TABLE>
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<TABLE>
<CAPTION>
SHARES OF COMMON STOCK NOTES OR CONVERSION
BENEFICIALLY OWNED PRIOR SHARES BEING
TO OFFERING(1)(3) OFFERED
------------------------- ------------------------------
NUMBER OF
PRINCIPAL CONVERSION
NAME NUMBER PERCENT(2) AMOUNT SHARES(3)(4)
- ---- ----------- ---------- ---------- -----------
<S> <C> <C> <C> <C>
Marcia Diamond, Trustee, The Marcia
Diamond Trust of 1995 .................... 7,872(6) * 100,000 6,872
McLean Trust ..................................... 13,745** * 200,000 13,745
North Pole Capital Investments Limited ........... 34,364** * 500,000 34,364
Offshore Strategies Ltd........................... 36,082** * 525,000 36,082
Ohio Carpenters' Pension Trust ................... 6,872** * 100,000 6,872
Pabst Brewing Co.................................. 41,237** * 600,000 41,237
August J. Pelizzi, Jr ............................ 6,872** * 100,000 6,872
Philip Morris Master Trust ....................... 34,364** * 500,000 34,364
RCASF High School Teachers Pension ............... 13,745** * 200,000 13,745
RCB Boise General Investment ..................... 6,872** * 100,000 6,872
Joseph J. Ritchie ................................ 418,312(5) * 2,900,000 199,312
Salesian Society--General ........................ 6,872** * 100,000 6,872
Santa Clara Missions Cemetery .................... 10,309** * 150,000 10,309
San Felipe Del Rio Foundation .................... 6,872** * 100,000 6,872
SCU Schmidt Foundation ........................... 13,745** * 200,000 13,745
Shepherd Management Service ...................... 687** * 10,000 687
Smith Barney Inc.................................. 68,728** * 1,000,000 68,728
Southern New England Telephone ................... 6,872** * 100,000 6,872
St. Mary's Pooled Endowment ...................... 17,182** * 250,000 17,182
St. Patrick's Seminary--Brd Dir End .............. 13,745** * 200,000 13,745
State Retirement and Pension Plan of
Maryland .................................... 51,546** * 750,000 51,546
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** * 1,905,000 130,927
TQA Arbitrage Fund, L.P........................... 26,460** * 385,000 26,460
TQA Vantage Fund, Ltd............................. 18,213** * 265,000 18,213
TQA Leverage Fund, L.P............................ 17,182** * 250,000 17,182
TQA Vantage Plus, Ltd............................. 17,182** * 250,000 17,182
World Wide Transactions Ltd....................... 1,375** * 20,000 1,375
WR Investment Partners ........................... 687** * 10,000 687
</TABLE>
- ---------------
* 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 19,497,032 shares of common stock outstanding on June 7, 1999
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
22,589,815 shares of common stock outstanding (based on the number of
shares outstanding on June 7, 1999 and 3,092,783 conversion shares)
except Lindner Investments (7%).
(5) Includes 219,000 shares of the Company's common stock held by Mr.
Ritchie.
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(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 26, 1996 and most
recently amended on October 12, 1997 and a Schedule 13G Amendment filed
on August 28, 1996. Includes 1,546,390 shares of common stock issuable
upon conversion of 8% Convertible Notes due 2003. Ryback Management
Corporation has sole voting and dispositive power over the shares held
by Lindner Investments. 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.
The Company can give no estimate as to the principal amount of notes or
conversion shares that will be held by the selling securityholders after
completion of this offering because:
o 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
o 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.
Potential investors are advised to review Metricom's risk factors set forth in
Metricom's report on form 8-K filed on July 9, 1999. We are incorporating those
risk factors by reference into this supplement.
The date of this Prospectus Supplement No. 3 is July 9, 1999
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