<PAGE> 1
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
SCHEDULE 13D
UNDER THE SECURITIES EXCHANGE ACT OF 1934
(AMENDMENT NO. 3)*
PSINET, INC.
- --------------------------------------------------------------------------------
(Name of Issuer)
Common Stock, $.01 per share par value
- --------------------------------------------------------------------------------
(Title of Class of Securities)
74437C101
-----------------------------------------
(CUSIP Number)
Jeffrey C. Smith with a copy to:
General Counsel Michael P. Whalen, Esq.
IXC Communications, Inc. Riordan & McKinzie
1122 Capital of Texas Highway South 695 Town Center Drive, Suite 1500
Austin, Texas 78746 Costa Mesa, California 92626
(512) 328-1112 (714) 433-2618
- --------------------------------------------------------------------------------
(Name, Address and Telephone Number of Person Authorized to
Receive Notices and Communications)
July 6, 1999
-----------------------------------------------------------
(Date of Event which Requires Filing of this Statement)
If the filing person has previously filed a statement on Schedule 13G to report
the acquisition which is the subject of this Schedule 13D, and is filing this
schedule because of Rule 13d-1(b)(3) or (4), check the following box [ ].
Check the following box if a fee is being paid with the statement [ ].
NOTE: Six copies of this statement, including all exhibits, should be filed with
the Commission. See Rule 13d-1(a) for other parties to whom copies are to be
sent.
*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).
PAGE 1 OF 6
<PAGE> 2
SCHEDULE 13D
- ----------------------- -----------------------
CUSIP No. 74437C101 PAGE 2 OF 6 PAGES
- ----------------------- -----------------------
- --------------------------------------------------------------------------------
1 NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
IXC INTERNET SERVICES, INC.
- --------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP*
(a) [ ]
(b) [ ]
- --------------------------------------------------------------------------------
3 SEC USE ONLY
- --------------------------------------------------------------------------------
4 SOURCE OF FUNDS*
00 (See Item 3)
- --------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT
TO ITEMS 2(d) or 2(e) [ ]
- --------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
Delaware
- --------------------------------------------------------------------------------
7 SOLE VOTING POWER
0
NUMBER OF ----------------------------------------------------------
SHARES 8 SHARED VOTING POWER
BENEFICIALLY 10,229,789 (See Item 5)
OWNED BY ----------------------------------------------------------
EACH 9 SOLE DISPOSITIVE POWER
REPORTING 0
PERSON ----------------------------------------------------------
WITH 10 SHARED DISPOSITIVE POWER
10,229,789 (See Item 5)
- --------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
10,229,789 (See Item 5)
- --------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES* [ ]
- --------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
15.8%
- --------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
CO
- --------------------------------------------------------------------------------
*SEE INSTRUCTIONS BEFORE FILLING OUT!
INCLUDE BOTH SIDES OF THE COVER PAGE, RESPONSES TO ITEMS 1-7
(INCLUDING EXHIBITS) OF THE SCHEDULE, AND THE SIGNATURE ATTESTATION.
PAGE 2 OF 6
<PAGE> 3
SCHEDULE 13D
- ----------------------- -----------------------
CUSIP No. 74437C101 PAGE 3 OF 6 PAGES
- ----------------------- -----------------------
- --------------------------------------------------------------------------------
1 NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
IXC COMMUNICATIONS SERVICES, INC.
- --------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP*
(a) [ ]
(b) [ ]
- --------------------------------------------------------------------------------
3 SEC USE ONLY
- --------------------------------------------------------------------------------
4 SOURCE OF FUNDS*
00 (See Item 3)
- --------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT
TO ITEMS 2(d) or 2(e) [ ]
- --------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
Delaware
- --------------------------------------------------------------------------------
7 SOLE VOTING POWER
0
NUMBER OF ----------------------------------------------------------
SHARES 8 SHARED VOTING POWER
BENEFICIALLY 10,229,789 (See Item 5)
OWNED BY ----------------------------------------------------------
EACH 9 SOLE DISPOSITIVE POWER
REPORTING 0
PERSON ----------------------------------------------------------
WITH 10 SHARED DISPOSITIVE POWER
10,229,789 (See Item 5)
- --------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
10,229,789 (See Item 5)
- --------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES* [ ]
- --------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
15.8%
- --------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
CO
- --------------------------------------------------------------------------------
*SEE INSTRUCTIONS BEFORE FILLING OUT!
INCLUDE BOTH SIDES OF THE COVER PAGE, RESPONSES TO ITEMS 1-7
(INCLUDING EXHIBITS) OF THE SCHEDULE, AND THE SIGNATURE ATTESTATION.
PAGE 3 OF 6
<PAGE> 4
SCHEDULE 13D
- ----------------------- -----------------------
CUSIP No. 74437C101 PAGE 4 OF 6 PAGES
- ----------------------- -----------------------
- --------------------------------------------------------------------------------
1 NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
IXC COMMUNICATIONS INC.
- --------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP*
(a) [ ]
(b) [ ]
- --------------------------------------------------------------------------------
3 SEC USE ONLY
- --------------------------------------------------------------------------------
4 SOURCE OF FUNDS*
00 (See Item 3)
- --------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT
TO ITEMS 2(d) or 2(e) [ ]
- --------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
Delaware
- --------------------------------------------------------------------------------
7 SOLE VOTING POWER
0
NUMBER OF ----------------------------------------------------------
SHARES 8 SHARED VOTING POWER
BENEFICIALLY 10,229,789 (See Item 5)
OWNED BY ----------------------------------------------------------
EACH 9 SOLE DISPOSITIVE POWER
REPORTING 0
PERSON ----------------------------------------------------------
WITH 10 SHARED DISPOSITIVE POWER
10,229,789 (See Item 5)
- --------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
10,229,789 (See Item 5)
- --------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES* [ ]
- --------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
15.8%
- --------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
CO
- --------------------------------------------------------------------------------
*SEE INSTRUCTIONS BEFORE FILLING OUT!
INCLUDE BOTH SIDES OF THE COVER PAGE, RESPONSES TO ITEMS 1-7
(INCLUDING EXHIBITS) OF THE SCHEDULE, AND THE SIGNATURE ATTESTATION.
PAGE 4 OF 6
<PAGE> 5
STATEMENT ON SCHEDULE 13D
This Amendment No. 3 amends and supplements the statement on Schedule
13D filed on March 10, 1998, as amended by Amendment No. 1 thereto filed on June
17, 1999, and Amendment No. 2 filed on June 29, 1999 by IXC Internet Services,
Inc., a Delaware corporation ("Internet"), IXC Communications Services, Inc., a
Delaware corporation ("Services"), and IXC Communications, Inc., a Delaware
corporation ("IXC"), in respect of the common stock, par value $0.01, CUSIP No.
74437C101 (the "Common Stock"), of PSINet, Inc., a Delaware corporation (the
"Issuer"). Internet, Services and IXC are collectively referred to herein as the
"Filing Persons." Capitalized terms used and not otherwise defined herein shall
have the meanings ascribed to them to them in the initial filing.
Item 5. Interest in Securities of The Issuer.
Item 5 is hereby amended to add the following:
(c) On July 9, 1999, Merrill Lynch International ("MLI") made a
payment to Internet of $59,750,860.68 under a forward-purchase
contract in connection with the forward sale of the Issuer's
Common Stock as described in Item 6.
Item 6. Contracts, Arrangements, Understandings or Relationships with Respect to
Securities of The Issuer.
Item 6 is hereby amended to add the following:
Since the filing of Amendment No. 2 to Schedule 13D, Internet and MLI
have implemented a forward-purchase arrangement with respect to 1,500,000 shares
of the Issuer's Common Stock pursuant to a Confirmation of OTC Transaction (the
"Confirmation"), a copy of which is attached as Exhibit 1 hereto. The
transaction will be settled in the first quarter of 2002, or sooner upon the
occurrence of certain specified events. Internet may settle in cash or in shares
of the Issuer's Common Stock, at Internet's option. The amount of cash or number
of shares to be paid in settlement will be calculated according to a formula
specified in the Confirmation. See Exhibit 1 and the Master Agreement filed with
the Commission as Exhibit 4 to Amendment No. 2 to Schedule 13D for further
details.
Item 7. Material to be Filed as Exhibits.
The Filing Persons file as an exhibit the following:
Exhibit 1: Confirmation of OTC Transaction between MLI and Internet to
be filed via amendment.
PAGE 5 OF 6
<PAGE> 6
SIGNATURE
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 16, 1999 IXC INTERNET SERVICES, INC.
/s/ JEFFREY C. SMITH
----------------------------------------
By: Jeffrey C. Smith
Its: Senior Vice President,
General Counsel and Secretary
IXC COMMUNICATIONS SERVICES, INC.
/s/ JEFFREY C. SMITH
----------------------------------------
By: Jeffrey C. Smith
Its: Senior Vice President,
General Counsel and Secretary
IXC COMMUNICATIONS, INC.
/s/ JEFFREY C. SMITH
----------------------------------------
By: Jeffrey C. Smith
Its: Senior Vice President,
General Counsel and Secretary
PAGE 6 OF 6
