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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
SCHEDULE 13G
Under the Securities Exchange Act of 1934
(Amendment No. )
US LEC Corp.
(Name of Issuer)
Class A Common Stock
(Title of Class of Securities)
90331S109
(CUSIP Number)
July 21, 1998
(Date of Event Which Requires Filing of this Statement)
Check the appropriate box to designate the rule pursuant to which
this Schedule is filed:
/___/ Rule 13d-1(b)
/_X_/ Rule 13d-1(c)
/___/ Rule 13d-1(d)
* 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 ("Act") 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).
Potential persons who are to respond to the collection of
information contained in this form are not required to respond
unless the form displays a currently valid OMB control number.
SEC 1745 (3-98) Page 1 of 11
<PAGE>
CUSIP No. 90331S109
- ----------------------------------------------------------------
1 NAME OF REPORTING PERSONS
IRS IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)
West Highland Capital, Inc.
- ----------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (See
Instructions)
(a)/X /
(b)/ /
- ----------------------------------------------------------------
3 SEC USE ONLY
- ----------------------------------------------------------------
4 CITIZENSHIP OR PLACE OF ORGANIZATION
California
- ----------------------------------------------------------------
NUMBER OF 5 SOLE VOTING POWER
SHARES 0
BENEFICIALLY ---------------------------------------
OWNED BY 6 SHARED VOTING POWER
EACH 699,000
REPORTING ---------------------------------------
PERSON 7 SOLE DISPOSITIVE POWER
WITH 0
---------------------------------------
8 SHARED DISPOSITIVE POWER
699,000
- ----------------------------------------------------------------
9 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
699,000
- ----------------------------------------------------------------
10 CHECK IF THE AGGREGATE AMOUNT IN ROW (9) EXCLUDES CERTAIN
SHARES (See Instructions)
- ----------------------------------------------------------------
11 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW 9
6.9%
- ----------------------------------------------------------------
12 TYPE OF REPORTING PERSON (See Instructions)
CO and IA
- ----------------------------------------------------------------
Page 2 of 11
<PAGE>
CUSIP No. 90331S109
- ----------------------------------------------------------------
1 NAME OF REPORTING PERSONS
IRS IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)
Estero Partners, LLC
- ----------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (See
Instructions)
(a)/X /
(b)/ /
- ----------------------------------------------------------------
3 SEC USE ONLY
- ----------------------------------------------------------------
4 CITIZENSHIP OR PLACE OF ORGANIZATION
California
- ----------------------------------------------------------------
NUMBER OF 5 SOLE VOTING POWER
SHARES 0
BENEFICIALLY ---------------------------------------
OWNED BY 6 SHARED VOTING POWER
EACH 572,200
REPORTING ---------------------------------------
PERSON 7 SOLE DISPOSITIVE POWER
WITH 0
---------------------------------------
8 SHARED DISPOSITIVE POWER
572,200
- ----------------------------------------------------------------
9 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
572,200
- ----------------------------------------------------------------
10 CHECK IF THE AGGREGATE AMOUNT IN ROW (9) EXCLUDES CERTAIN
SHARES (See Instructions)
- ----------------------------------------------------------------
11 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW 9
5.6%
- ----------------------------------------------------------------
12 TYPE OF REPORTING PERSON (See Instructions)
OO
- ----------------------------------------------------------------
Page 3 of 11
<PAGE>
CUSIP No. 90331S109
- ----------------------------------------------------------------
1 NAME OF REPORTING PERSONS
IRS IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)
Lang H. Gerhard
- ----------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (See
Instructions)
(a)/X /
(b)/ /
- ----------------------------------------------------------------
3 SEC USE ONLY
- ----------------------------------------------------------------
4 CITIZENSHIP OR PLACE OF ORGANIZATION
United States
- ----------------------------------------------------------------
NUMBER OF 5 SOLE VOTING POWER
SHARES 0
BENEFICIALLY ---------------------------------------
OWNED BY 6 SHARED VOTING POWER
EACH 699,000
REPORTING ---------------------------------------
PERSON 7 SOLE DISPOSITIVE POWER
WITH 0
---------------------------------------
8 SHARED DISPOSITIVE POWER
699,000
- ----------------------------------------------------------------
9 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
699,000
- ----------------------------------------------------------------
10 CHECK IF THE AGGREGATE AMOUNT IN ROW (9) EXCLUDES CERTAIN
SHARES (See Instructions)
- ----------------------------------------------------------------
11 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW 9
6.9%
- ----------------------------------------------------------------
12 TYPE OF REPORTING PERSON (See Instructions)
IN
- ----------------------------------------------------------------
Page 4 of 11
<PAGE>
CUSIP No. 90331S109
- ----------------------------------------------------------------
1 NAME OF REPORTING PERSONS
IRS IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)
West Highland Partners, L.P.
- ----------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (See
Instructions)
(a)/X /
(b)/ /
- ----------------------------------------------------------------
3 SEC USE ONLY
- ----------------------------------------------------------------
4 CITIZENSHIP OR PLACE OF ORGANIZATION
California
- ----------------------------------------------------------------
NUMBER OF 5 SOLE VOTING POWER
SHARES 0
BENEFICIALLY ---------------------------------------
OWNED BY 6 SHARED VOTING POWER
EACH 491,715
REPORTING ---------------------------------------
PERSON 7 SOLE DISPOSITIVE POWER
WITH 0
---------------------------------------
8 SHARED DISPOSITIVE POWER
491,715
- ----------------------------------------------------------------
9 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
491,715
- ----------------------------------------------------------------
10 CHECK IF THE AGGREGATE AMOUNT IN ROW (9) EXCLUDES CERTAIN
SHARES (See Instructions)
- ----------------------------------------------------------------
11 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW 9
4.8%
- ----------------------------------------------------------------
12 TYPE OF REPORTING PERSON (See Instructions)
PN
- ----------------------------------------------------------------
Page 5 of 11
<PAGE>
CUSIP No. 90331S109
- ----------------------------------------------------------------
1 NAME OF REPORTING PERSONS
IRS IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)
Buttonwood Partners, L.P.
- ----------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (See
Instructions)
(a)/X /
(b)/ /
- ----------------------------------------------------------------
3 SEC USE ONLY
- ----------------------------------------------------------------
4 CITIZENSHIP OR PLACE OF ORGANIZATION
California
- ----------------------------------------------------------------
NUMBER OF 5 SOLE VOTING POWER
SHARES 0
BENEFICIALLY ---------------------------------------
OWNED BY 6 SHARED VOTING POWER
EACH 80,485
REPORTING ---------------------------------------
PERSON 7 SOLE DISPOSITIVE POWER
WITH 0
---------------------------------------
8 SHARED DISPOSITIVE POWER
80,485
- ----------------------------------------------------------------
9 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
80,485
- ----------------------------------------------------------------
10 CHECK IF THE AGGREGATE AMOUNT IN ROW (9) EXCLUDES CERTAIN
SHARES (See Instructions)
- ----------------------------------------------------------------
11 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW 9
0.8%
- ----------------------------------------------------------------
12 TYPE OF REPORTING PERSON (See Instructions)
PN
- ----------------------------------------------------------------
Page 6 of 11
<PAGE>
CUSIP No. 90331S109 13G
ITEM 1.
(a) The name of the issuer is US LEC Corp. (the "Issuer").
(b) The principal executive office of the Issuer is located
at 212 South Tryon Street, Suite 1540, Charlotte, NC 28281.
ITEM 2.
(a) The names of the persons filing this statement are West
Highland Capital, Inc. ("WHC"), Lang H. Gerhard ("Gerhard"),
Estero Partners, LLC ("LLC"), West Highland Partners, L.P.
("WHP") and Buttonwood Partners, L.P. ("BP") (collectively, the
"Filers").
(b) The principal business office of the Filers is located
at 300 Drakes Landing Road, Suite 290, Greenbrae, CA 94904.
(c) WHC is a California corporation, LLC is a California
limited liability company, WHP and BP are California limited
partnerships and Gerhard is a United States citizen.
(d) This statement relates to shares of Class A Common
Stock of the Issuer (the "Stock").
(e) The CUSIP number of the Stock is 90331S109.
Page 7 of 11
<PAGE>
CUSIP No. 90331S109 13G
ITEM 3. If this statement is filed pursuant to rule 240.13d-
1(b), or 240.13d-2(b) or (c), check whether the person filing is
a:
(a) ___ Broker or dealer registered under section 15 of
the Act (15 U.S.C. 78o).
(b) ___ Bank as defined in section 3(a)(6) of the Act (15
U.S.C. 78c).
(c) ___ Insurance company as defined in section 3(a)(19)
of the Act (15 U.S.C. 78c).
(d) ___ Investment company registered under section 8 of
the Investment Company Act of 1940 (15 U.S.C. 80a-8).
(e) ___ An investment adviser in accordance with 240.13d-
1(b)(1)(ii)(E).
(f) ___ An employee benefit plan or endowment fund in
accordance with 240.13d-1(b)(1)(ii)(F).
(g) ___ A parent holding company or control person in
accordance with 240.13d-1(b)(1)(ii)(G)
(h) ___ A savings association as defined in section 3(b)
of the Federal Deposit Insurance Act (12 U.S.C. 1813).
(i) ___ A church plan that is excluded from the definition
of an investment company under section 3(c)(14) of the Investment
Company Act of 1940 (15 U.S.C. 80a-3).
(j) ___ Group, in accordance with section 240.13d-
1(b)(1)(ii)(J)
Page 8 of 11
<PAGE>
CUSIP No. 90331S109 13G
ITEM 4. OWNERSHIP.
See Items 5-9 and 11 of the cover sheet for each Filer.
ITEM 5. OWNERSHIP OF FIVE PERCENT OR LESS OF A CLASS
If this statement is being filed to report the fact that as of
the date hereof the reporting person has ceased to be the
beneficial owner of more than five percent of the class of
securities, check the following /___/.
ITEM. 6. OWNERSHIP OF MORE THAN FIVE PERCENT ON BEHALF OF
ANOTHER PERSON
WHC is a registered investment adviser whose clients have the
right to receive or the power to direct the receipt of dividends
from, or the proceeds from the sale of, the Stock. Gerhard is
the sole shareholder of WHC and the Manager of LLC. WHC, LLC and
Gerhard are the general partners of WHP and BP, which are
investment limited partnerships. No single client of WHC holds
more than five percent of the Stock.
ITEM 7. IDENTIFICATION AND CLASSIFICATION OF THE SUBSIDIARY
WHICH ACQUIRED THE SECURITY BEING REPORTED ON BY THE PARENT
HOLDING COMPANY
Not applicable.
ITEM 8. IDENTIFICATION AND CLASSIFICATION OF MEMBERS OF THE
GROUP
See Item 2(a) of this Schedule.
ITEM 9. NOTICE OF DISSOLUTION OF GROUP
Not applicable.
ITEM 10. CERTIFICATION
By signing below I certify that, to the best of my knowledge and
belief, the securities referred to above were not acquired and
are not held for the purpose of or with the effect of changing or
influencing the control of the issuer of the securities and were
not acquired and are not held in connection with or as a
participant in any transaction having that purpose or effect.
Page 9 of 11
<PAGE>
CUSIP No. 90331S109 13G
SIGNATURES
After reasonable inquiry and to the best of my knowledge and
belief, I certify that the information set forth in this
statement is true, complete and correct.
DATED: July 31, 1998
LANG H. GERHARD WEST HIGHLAND PARTNERS,
L.P.
By: West Highland Capital, Inc. By: West Highland
Attorney-in-Fact Capital, Inc.
Attorney-in-Fact
By: /s/ Bonnie George By: /s/ Bonnie George
Bonnie George Bonnie George,
Chief Operating Officer Chief Operating
Officer
WEST HIGHLAND CAPITAL, INC. BUTTONWOOD PARTNERS, L.P.
By: /s/ Bonnie George By: West Highland
Bonnie George Capital, Inc.
Chief Operating Officer Attorney-in-Fact
ESTERO PARTNERS, LLC By: /s/ Bonnie George
By: West Highland Capital, Inc. Bonnie George
Attorney-in-Fact Chief Operating
Officer
By: /s/ Bonnie George
Bonnie George
Chief Operating Officer
Page 10 of 11<PAGE>
SCHEDULE 13D
CUSIP No. 90331S109
EXHIBIT A
AGREEMENT REGARDING JOINT FILING
OF STATEMENT ON SCHEDULE 13D OR 13G
The undersigned agree to file jointly with the Securities and
Exchange Commission (the "SEC") any and all statements on
Schedule 13D or Schedule 13G (and any amendments or supplements
thereto) required under section 13(d) of the Securities Exchange
Act of 1934, as amended, in connection with purchases by the
undersigned of securities of Intermedia Communications, Inc. and
any other issuer, until such time as the undersigned file with
the SEC a statement terminating this Agreement Regarding Joint
Filing of Statement on Schedule 13D or 13G. For that purpose,
the undersigned hereby constitute and appoint West Highland
Capital, Inc., a California corporation, as their true and lawful
agent and attorney-in-fact, with full power and authority for and
on behalf of the undersigned to prepare or cause to be prepared,
sign, file with the SEC and furnish to any other person all
certificates, instruments, agreements and documents necessary to
comply with section 13(d) and section 16(a) of the Securities
Exchange Act of 1934, as amended, in connection with said
purchases, and to do and perform every act necessary and proper
to be done incident to the exercise of the foregoing power, as
fully as the undersigned might or could do if personally present,
until such time as the undersigned file with the SEC a statement
terminating this Agreement Regarding Joint Filing of Statement on
Schedule 13D or 13G.
DATED: May 15, 1998
/s/ Lang H. Gerhard WEST HIGHLAND PARTNERS, L.P.
Lang H. Gerhard
By: /s/ Lang H. Gerhard
Lang H. Gerhard
WEST HIGHLAND CAPITAL, INC. General Partner
By: /s/ Bonnie George
Bonnie George, Chief BUTTONWOOD PARTNERS, L.P.
Operating Officer
By: /s/ Lang H. Gerhard
ESTERO PARTNERS, LLC Lang H. Gerhard
General Partner
By: /s/ Lang H. Gerhard
Lang H. Gerhard
Manager
Page 11 of 11
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