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UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 4
STATEMENT OF CHANGES IN BENEFICIAL OWNERSHIP
Filed pursuant to Section 16(a) of the Securities Exchange Act of 1934,
Section 17(a) of the Public Utility Holding Company Act of 1935 or
Section 30(f) of the Investment Company Act of 1940
[ ] Check this box if no longer subject to Section 16. Form 4 or Form 5
obligations may continue. See Instruction 1(b).
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1. Name and Address of Reporting Person*
The Goldman Sachs Group, Inc.
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(Last) (First) (Middle)
85 Broad Street
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(Street)
New York, New York 10004
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(City) (State) (Zip)
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2. Issuer Name and Ticker or Trading Symbol
StorageNetworks, Inc.
(STOR)
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3. I.R.S. Identification Number of Reporting Person, if an entity (voluntary)
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4. Statement for Month/Year
July/2000
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5. If Amendment, Date of Original (Month/Year)
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6. Relationship of Reporting Person(s) to Issuer
(Check all applicable)
[ ] Director [ X ] 10% Owner
[ ] Officer (give title below) [ ] Other (specify below)
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7. Individual or Joint/Group Filing (Check Applicable Line)
[ ] Form filed by One Reporting Person
[ X ] Form filed by More than One Reporting Person
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<TABLE>
<CAPTION>
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Table I -- Non-Derivative Securities Acquired, Disposed of, |
or Beneficially Owned |
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| | | | |6. | |
| | | 4. |5. |Owner- | |
| | | Securities Acquired (A) or |Amount of |ship | |
| | 3. | Disposed of (D) |Securities |Form: |7. |
|2. | Transaction| (Instr. 3, 4 and 5) |Beneficially |Direct |Nature of |
|Transaction | Code | -------------------------------|Owned at End |(D) or |Indirect |
1. |Date | (Instr. 8) | | (A) | |of Month |Indirect |Beneficial|
Title of Security |(Month/Day/ | -----------| Amount | or | Price |(Instr. 3 |(I) |Ownership |
(Instr. 3) |Year) | Code | V | | (D) | |and 4) |(Instr.4)|(Instr. 4)|
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<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
| | | | | | | | | |
Common Stock | 7/6/00 | C | | 01 | A | | 02 | 02 | 02 |
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</TABLE>
Reminder: Report on a separate line for each class of securities beneficially
owned directly or indirectly.
* If the form is filed by more than one reporting person, see Instruction
4(b)(v).
FORM 4 (continued)
<TABLE>
<CAPTION>
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Table II -- Derivative Securities Acquired, Disposed of, or Beneficially Owned |
(e.g., puts, calls, warrants, options, convertible securities) |
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| | | | | | | |9. |10. | |
| | | | | | | |Number |Owner-| |
| | | | | | | |of |ship | |
|2. | | | | | | |Deriv- |of | |
|Conver- | | | 5. | |7. | |ative |Deriv-|11. |
|sion | | | Number of | |Title and Amount | |Secur- |ative |Nature|
|or | | | Derivative |6. |of Underlying |8. |ities |Secur-|of |
|Exer- | |4. | Securities |Date |Securities |Price |Bene- |ity: |In- |
|cise |3. |Trans-| Acquired (A) |Exercisable and |(Instr. 3 and 4) |of |ficially |Direct|direct|
|Price |Trans- |action| or Disposed |Expiration Date |-----------------------|Deriv- |Owned |(D) or|Bene- |
1. |of |action |Code | of (D) |(Month/Day/Year) | |Amount |ative |at End |In- |ficial|
Title of |Deriv- |Date |(Instr| (Instr. 3, |-----------------| |or |Secur- |of |direct|Owner-|
Derivative |ative |(Month/ |8) | 4 and 5) |Date |Expira- | |Number |ity |Month |(I) |ship |
Security |Secur- |Day/ |------| ------------ |Exer- |tion | |of |(Instr. |(Instr. |(Instr|(Instr|
(Instr. 3) |ity |Year) |Code|V| (A) | (D) |cisable |Date |Title |Shares |5) |4) |4) |4) |
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<S> <C> <C> <C> <C><C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Series B | | | | | | | | | | | | | | |
Convertible | | | | | | | | | | | | | | |
Preferred Stock| 01 | 7/6/00 | C | | | 01 | 01 | 01 |Common Stock | 01 | | -0- | 01,02| 01,02|
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Stock Option | | | | | | | | | | | | | | |
(right to buy) | $8.00 | | | | | | 03 |01/27/10|Common Stock | 25,000 | | 25,000 | 03 | 03 |
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</TABLE>
Instruction 4(b)(v) list of other Reporting Persons:
This statement is being filed by GS Capital Partners III, L.P. ("GS Capital
III"), GS Capital Partners III Offshore, L.P. ("GS Offshore"), GS Capital
Partners III Germany Civil Law Partnership ("GS Germany"), Stone Street Fund
1999, L.P. ("1999 Stone", and together with GS Capital III, GS Offshore, and GS
Germany, the "Limited Partnerships"), Stone Street 1999, L.L.C. ("Stone GP"),
GS Advisors III, L.L.C. ("GS Advisors"), Goldman, Sachs & Co. oHG ("GS oHG"),
Goldman, Sachs & Co. ("Goldman Sachs"), and The Goldman Sachs Group, Inc. ("GS
Group" and, together with GS Capital III, GS Offshore, GS Germany, 1999 Stone,
Goldman Sachs, GS Advisors, GS oHG and Stone GP, the "Reporting Persons"). The
principal business address of each of GS Capital III, 1999 Stone, Stone GP, GS
Advisors, Goldman Sachs and GS Group is 85 Broad Street, New York, New York,
10004. The principal business address of GS Offshore is c/o Maples and Calder,
P.O. Box 309, Grand Cayman, Cayman Islands. The principal business address of
each of GS Germany and GS oHG is MesseTurm, 60308 Frankfurt am Main, Germany.
Explanation of Responses:
01: Each share of Series B Convertible Preferred Stock ("Series B Stock") was
automatically converted into two shares of the Issuer's Common Stock upon the
completion by the Issuer of an initial public offering of its Common Stock.
Accordingly, 3,692,476 shares of Series B Stock owned by GS Capital III were
converted into 7,384,952 shares of Common Stock.
1,015,106 shares of Series B Stock owned by GS Offshore were converted into
2,030,212 shares of Common Stock.
170,464 shares of Series B Stock owned by GS Germany were converted into 340,928
shares of Common Stock.
203,252 shares of Series B Stock owned by 1999 Stone were converted into 406,504
shares of Common Stock.
02: Goldman Sachs and GS Group may be deemed to own beneficially and indirectly
in aggregate 11,465,888 shares of Common Stock through the Limited Partnerships
of which affiliates of Goldman Sachs and GS Group are the general partner or
managing partner. Goldman Sachs is the investment manager of GS Capital III, GS
Offshore and GS Germany. Goldman Sachs is an indirect wholly-owned subsidiary of
GS Group. Goldman Sachs and GS Group each disclaim beneficial ownership of the
shares of Common Stock owned by the Limited Partnerships except to the extent of
their pecuniary interest therein.
GS Capital III may be deemed to own beneficially and directly and its general
partner, GS Advisors, may be deemed to own beneficially and indirectly 8,332,028
shares of Common Stock. GS Advisors disclaims beneficial ownership of the
securities reported herein except to the extent of its pecuniary interest
therein.
GS Offshore may be deemed to own beneficially and directly and its general
partner, GS Advisors, may be deemed to own beneficially and indirectly 2,290,574
shares of Common Stock. GS Advisors disclaims beneficial ownership of the
securities reported herein except to the extent of its pecuniary interest
therein.
GS Germany may be deemed to own beneficially and directly and its managing
partner, GS oHG, may be deemed to own beneficially and indirectly 384,650 shares
of Common Stock. GS oHG disclaims beneficial ownership of the securities
reported herein except to the extent of its pecuniary interest therein.
1999 Stone may be deemed to own beneficially and directly and its general
partner, Stone GP, may be deemed to own beneficially and indirectly 458,636
shares of Common Stock. Stone GP disclaims beneficial ownership of the
securities reported herein except to the extent of its pecuniary interest
therein.
03: These options were granted pursuant to the Issuer's Amended and Restated
1998 Stock Incentive Plan to a director of the Issuer, who is a managing
director of Goldman Sachs (the "Director"). The option is immediately
exercisable in full, subject to the Issuer's right to repurchase a percentage of
any shares of Common Stock issued upon exercise of the option ("Shares"), as
follows: If the Director ceases to be either an employee, officer or director of
the Issuer prior to 01/26/01, the Issuer has the right to repurchase 100% of the
Shares. If the Director ceases to be either an employee, officer or director of
the Issuer at any time during the 12 month period between 01/26/01 and 01/26/02,
the Issuer has the right to repurchase 50% of the Shares. These repurchase
rights of the Issuer terminate in any event upon certain acquisition events of
the Issuer or upon the death or disability of the Director. The Director has an
understanding with GS Group pursuant to which he holds such options for the
benefit of GS Group.
**Signatures:
GOLDMAN, SACHS & CO.
By: s/ Roger S. Begelman
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Name: Roger S. Begelman
Title: Attorney-in-fact
THE GOLDMAN SACHS GROUP, INC.
By: s/ Roger S. Begelman
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Name: Roger S. Begelman
Title: Attorney-in-fact
GS CAPITAL PARTNERS III, L.P.
By: s/ Roger S. Begelman
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Name: Roger S. Begelman
Title: Attorney-in-fact
GS CAPITAL PARTNERS III OFFSHORE, L.P.
By: s/ Roger S. Begelman
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Name: Roger S. Begelman
Title: Attorney-in-fact
GS CAPITAL PARTNERS III GERMANY CIVIL LAW PARTNERSHIP
(with limitation of liability)
By: s/ Roger S. Begelman
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Name: Roger S. Begelman
Title: Attorney-in-fact
GS ADVISORS III, L.L.C.
By: s/ Roger S. Begelman
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Name: Roger S. Begelman
Title: Attorney-in-fact
GOLDMAN, SACHS & CO. oHG
By: s/ Roger S. Begelman
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Name: Roger S. Begelman
Title: Attorney-in-fact
STONE STREET FUND 1999, L.P.
By: s/ Roger S. Begelman
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Name: Roger S. Begelman
Title: Attorney-in-fact
STONE STREET 1999, L.L.C.
By: s/ Roger S. Begelman
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Name: Roger S. Begelman
Title: Attorney-in-fact
Date: August 10, 2000
** Intentional misstatements or omissions of facts constitute Federal
Criminal Violations.
See 18 U.S.C. 1001 and 15 U.S.C. 78ff(a).
Note: File three copies of this Form, one of which must be manually signed.
If space provided is insufficient, see Instruction 6 for procedures.
Alternatively, this Form is permitted to be submitted to the
Commission in electronic format at the option of the reporting person
pursuant to Rule 101(b)(4) of Regulation S-T.
