UNITED STATES SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 4
STATEMENT OF CHANGES IN BENEFICIAL OWNERSHIP
( ) Check this box if no longer subject to Section 16.
Form 4 or Form 5 obligations may continue. See Instructions 1(b).
1. Name and Address of Reporting Person
Primus Capital Fund III, Limited Partnership
5900 Landerbrook Drive, Suite 200
Cleveland, OH 44124
USA
2. Issuer Name and Ticker or Trading Symbol
Preferred Networks, Inc.
PFNT
3. IRS or Social Security Number of Reporting Person (Voluntary)
4. Statement for Month/Year
March 1998
5. If Amendment, Date of Original (Month/Year)
6. Relationship of Reporting Person(s) to Issuer (Check all applicable)
( ) Director (X) 10% Owner ( ) Officer (give title below) ( ) Other
(specify below)
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 I -- Non-Derivative Securities Acquired, Disposed of, or Beneficially Owned |
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1. Title of Security |2. |3. |4.Securities Acquired (A) |5.Amount of |6.Dir |7.Nature of Indirect |
| Transaction | or Disposed of (D) | Securities |ect | Beneficial Ownership |
| | | | Beneficially |(D)or | |
| | | | | A/| | Owned at |Indir | |
| Date |Code|V| Amount | D | Price | End of Month |ect(I)| |
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Table II -- Derivative Securitites Acquired, Disposed of, or Beneficially Owned |
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1.Title of Derivative |2.Con- |3. |4. |5.Number of De |6.Date Exer|7.Title and Amount |8.Price|9.Number |10.|11.Nature of|
Security |version |Transaction | rivative Secu |cisable and| of Underlying |of Deri|of Deriva |Dir|Indirect |
|or Exer | | | rities Acqui |Expiration | Securities |vative |tive |ect|Beneficial |
|cise | | | red(A) or Dis |Date(Month/| |Secu |Securities |(D)|Ownership |
|Price of| | | posed of(D) |Day/Year) | |rity |Benefi |or | |
|Deriva- | | | |Date |Expir| | |ficially |Ind| |
|tive | | | | A/|Exer-|ation| Title and Number | |Owned at |ire| |
|Secu- | | | | | D |cisa-|Date | of Shares | |End of |ct | |
|rity |Date |Code|V| Amount | |ble | | | |Month |(I)| |
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<S> <C> <C> <C> <C><C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Warrants to purchase c|$1.50 |03/17|P | |195,826 |A |03/17|03/17|Common Stock|195,826|(2) |1,499,159 |D(1| |
ommon stock | |/98 | | | | |/98 |/03 | | | | |) | |
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Explanation of Responses:
(1) Primus Venture Partners III Limited Partnership, an Ohio limited
partnership ("Primus
Venture III"), is the sole general partner of the Reporting Person, and Primus
Venture Partners,
Inc., an Ohio corporation, is the sole general partner of Primus Venture III.
By virtue of the
relationships described above, Primus and Primus Venture III may be deemed to
control the
Reporting Person and possess indirect beneficial ownership of the securities of
the Issuer directly
beneficially held by the Reporting Person. Each of Primus and Primus Venture
III disclaims any
pecuniary interest in any Issuer securities, other than to the extent of such
person's indirect
proportionate interest in the Reporting
Person.
(2) On March 17, 1998, the Reporting Person and certain other
stockholders of the Issuer
invested an aggregate of $8 million in newly issued Class B Senior Redeemable
Preferred Stock
and warrants of the Issuer. The Reporting Person invested a total of $290,112
of such amount.
Joint Filer Name: Primus Venture Partners III Limited
Partnership
Address: 5900 Landerbrook Drive, Suite
200
Cleveland, Ohio
44124
Signature: /s/ Steven
Rothman
Steven Rothman, Managing Director of Primus Venture Partners,
Inc.,
General
Partner
Joint Filer Name: Primus Venture Partners,
Inc.
Address: 5900 Landerbrook Drive, Suite
200
Cleveland, Ohio
44124
Signature: /s/ Steven
Rothman
Steven Rothman, Managing
Director
SIGNATURE OF REPORTING PERSON
/s/Steve Rothman, Managing Dir., Primus Venture Partners Inc
DATE
April 10, 1998
