<PAGE>
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
SCHEDULE 13D
Under the Securities Exchange Act of 1934
MIDCOM COMMUNICATIONS INC.
________________________________________________________________________________
(Name of Issuer)
COMMON STOCK, PAR VALUE OF $.0001 PER SHARE
________________________________________________________________________________
(Title of Class of Securities)
00059563X1
_______________________________________________________________
(CUSIP Number)
John R. Dennis
14 Bello Drive
Edina, Minnesota 55439
(612) 947-9058
________________________________________________________________________________
(Name, Address and Telephone Number of Person Authorized to Receive Notices and
Communications)
May 14, 1996
_______________________________________________________________
(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 [X]. (A fee is
not required only if the reporting person: (1) has a previous statement on file
reporting beneficial ownership of more than five percent of the class of
securities described in Item 1; and (2) has filed no amendment subsequent
thereto reporting beneficial ownership of five percent or less of such class.)
(See Rule 13d-7.)
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.
(Continued on following pages)
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CUSIP NO. 00059563X1 13D Page 2 of 14 Pages
----------------------- ---------------------
------------------------------------------------------------------------------
NAME OF REPORTING PERSON
1 S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
TELECOMMUNICATIONS CAPITAL ADVISORS
------------------------------------------------------------------------------
CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP*
2 (a) [_]
JOINT (b) [X]
------------------------------------------------------------------------------
SEC USE ONLY
3
------------------------------------------------------------------------------
SOURCE OF FUNDS
4
OO
------------------------------------------------------------------------------
CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT
TO ITEMS 2(d) or 2(e) [_]
5
------------------------------------------------------------------------------
CITIZENSHIP OR PLACE OF ORGANIZATION
6
Delaware
------------------------------------------------------------------------------
SOLE VOTING POWER
7
NUMBER OF
0
SHARES -----------------------------------------------------------
SHARED VOTING POWER
BENEFICIALLY 8
OWNED BY 801,000
-----------------------------------------------------------
EACH SOLE DISPOSITIVE POWER
9
REPORTING
0
PERSON -----------------------------------------------------------
SHARED DISPOSITIVE POWER
WITH 10
801,000
------------------------------------------------------------------------------
AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
11
801,000
------------------------------------------------------------------------------
CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES
12
[_]
------------------------------------------------------------------------------
PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
13
5.2%
------------------------------------------------------------------------------
TYPE OF REPORTING PERSON*
14
PN
------------------------------------------------------------------------------
<PAGE>
----------------------- ---------------------
CUSIP NO. 00059563X1 13D Page 3 of 14 Pages
----------------------- ---------------------
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NAME OF REPORTING PERSON
1 S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
JOHN R. DENNIS
------------------------------------------------------------------------------
CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP*
2 (a) [_]
JOINT (b) [X]
------------------------------------------------------------------------------
SEC USE ONLY
3
------------------------------------------------------------------------------
SOURCE OF FUNDS
4
PF
------------------------------------------------------------------------------
CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT
TO ITEMS 2(d) or 2(e) [_]
5
------------------------------------------------------------------------------
CITIZENSHIP OR PLACE OF ORGANIZATION
6
UNITED STATES
------------------------------------------------------------------------------
SOLE VOTING POWER
7
NUMBER OF
0
SHARES -----------------------------------------------------------
SHARED VOTING POWER
BENEFICIALLY 8
OWNED BY 300,000
-----------------------------------------------------------
EACH SOLE DISPOSITIVE POWER
9
REPORTING
0
PERSON -----------------------------------------------------------
SHARED DISPOSITIVE POWER
WITH 10
300,000
------------------------------------------------------------------------------
AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
11
300,000
------------------------------------------------------------------------------
CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES
12
[_]
------------------------------------------------------------------------------
PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
13
1.9%
------------------------------------------------------------------------------
TYPE OF REPORTING PERSON*
14
IN
------------------------------------------------------------------------------
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----------------------- ---------------------
CUSIP NO. 00059563X1 13D Page 4 of 14 Pages
----------------------- ---------------------
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NAME OF REPORTING PERSON
1 S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
MARYANNE DENNIS
------------------------------------------------------------------------------
CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP*
2 (a) [_]
JOINT (b) [X]
------------------------------------------------------------------------------
SEC USE ONLY
3
------------------------------------------------------------------------------
SOURCE OF FUNDS
4
PF
------------------------------------------------------------------------------
CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT
TO ITEMS 2(d) or 2(e) [_]
5
------------------------------------------------------------------------------
CITIZENSHIP OR PLACE OF ORGANIZATION
6
UNITED STATES
------------------------------------------------------------------------------
SOLE VOTING POWER
7
NUMBER OF
0
SHARES -----------------------------------------------------------
SHARED VOTING POWER
BENEFICIALLY 8
OWNED BY 300,000
-----------------------------------------------------------
EACH SOLE DISPOSITIVE POWER
9
REPORTING
0
PERSON -----------------------------------------------------------
SHARED DISPOSITIVE POWER
WITH 10
300,000
------------------------------------------------------------------------------
AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
11
300,000
------------------------------------------------------------------------------
CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES
12
[_]
------------------------------------------------------------------------------
PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
13
1.9%
------------------------------------------------------------------------------
TYPE OF REPORTING PERSON*
14
IN
------------------------------------------------------------------------------
<PAGE>
----------------------- ---------------------
CUSIP NO. 00059563X1 13D Page 5 of 14 Pages
----------------------- ---------------------
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NAME OF REPORTING PERSON
1 S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
DONALD V. SZYMIK
------------------------------------------------------------------------------
CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP*
2 (a) [_]
JOINT (b) [X]
------------------------------------------------------------------------------
SEC USE ONLY
3
------------------------------------------------------------------------------
SOURCE OF FUNDS
4
PF
------------------------------------------------------------------------------
CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT
TO ITEMS 2(d) or 2(e) [_]
5
------------------------------------------------------------------------------
CITIZENSHIP OR PLACE OF ORGANIZATION
6
UNITED STATES
------------------------------------------------------------------------------
SOLE VOTING POWER
7
NUMBER OF
0
SHARES -----------------------------------------------------------
SHARED VOTING POWER
BENEFICIALLY 8
OWNED BY 501,000
-----------------------------------------------------------
EACH SOLE DISPOSITIVE POWER
9
REPORTING
0
PERSON -----------------------------------------------------------
SHARED DISPOSITIVE POWER
WITH 10
501,000
------------------------------------------------------------------------------
AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
11
501,000
------------------------------------------------------------------------------
CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES
12
[_]
------------------------------------------------------------------------------
PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
13
3.2%
------------------------------------------------------------------------------
TYPE OF REPORTING PERSON*
14
IN
------------------------------------------------------------------------------
<PAGE>
----------------------- ---------------------
CUSIP NO. 00059563X1 13D Page 6 of 14 Pages
----------------------- ---------------------
------------------------------------------------------------------------------
NAME OF REPORTING PERSON
1 S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
MAUREEN K. SZYMIK
------------------------------------------------------------------------------
CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP*
2 (a) [_]
JOINT (b) [X]
------------------------------------------------------------------------------
SEC USE ONLY
3
------------------------------------------------------------------------------
SOURCE OF FUNDS
4
PF
------------------------------------------------------------------------------
CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT
TO ITEMS 2(d) or 2(e) [_]
5
------------------------------------------------------------------------------
CITIZENSHIP OR PLACE OF ORGANIZATION
6
UNITED STATES
------------------------------------------------------------------------------
SOLE VOTING POWER
7
NUMBER OF
0
SHARES -----------------------------------------------------------
SHARED VOTING POWER
BENEFICIALLY 8
OWNED BY 501,000
-----------------------------------------------------------
EACH SOLE DISPOSITIVE POWER
9
REPORTING
0
PERSON -----------------------------------------------------------
SHARED DISPOSITIVE POWER
WITH 10
501,000
------------------------------------------------------------------------------
AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
11
501,000
------------------------------------------------------------------------------
CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES
12
[_]
------------------------------------------------------------------------------
PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
13
3.2%
------------------------------------------------------------------------------
TYPE OF REPORTING PERSON*
14
IN
------------------------------------------------------------------------------
<PAGE>
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CUSIP NO. 00059563X1 13D Page 7 of 14 Pages
----------------------- ---------------------
Item 1. Security and Issuer.
-------------------
The title and class of equity securities to which this statement
relates is the common stock, par value $.0001 per share (the "Common Stock"), of
MIDCOM Communications Inc., a Washington corporation (the "Company"). The
Company's principal executive offices are located at 1111 Third Avenue, Seattle,
Washington 98101.
Item 2. Identity and Background.
-----------------------
John R. and Maryanne Dennis (the "Dennises") jointly hold 300,000
shares of Company Common Stock. Their address is 14 Bello Drive, Edina,
Minnesota 55439. Donald V. and Maureen K. Szymik (the "Szymiks") jointly hold
501,000 shares of Company Common Stock. Their address is 812 Tomer Place, Sioux
Falls, South Dakota 57105. The present principal occupation of each of John
Dennis and Donald Szymik is investor. The principal occupation of Mrs. Dennis is
homemaker. The principal occupation of Mrs. Szymik is homemaker. Mr. and Mrs.
Dennis and Mr. and Mrs. Szymik are all citizens of the United States.
Telecommunications Capital Advisors ("Advisors") is a Delaware general
partnership formed on May 14, 1996 by an oral agreement between its general
partners, John Dennis and Donald Szymik to work cooperatively with respect to
their shares of Common Stock. The principal business of Advisors is investment
in the Company Common Stock. The address of its principal office is 14 Bello
Drive, Edina, Minnesota 55439.
None of John Dennis, Maryanne Dennis, Donald Szymik, Maureen Szymik
and Advisors, during the last five years, (i) has been convicted in a criminal
proceeding (excluding traffic violations or similar misdemeanors) or (ii) was a
party to a civil proceeding of a judicial or administrative body of competent
jurisdiction and as a result of such proceeding was or is subject to a judgment,
decree or final order enjoining future violations of, or prohibiting or
mandating activities subject to, Federal or State securities laws or finding any
violation with respect to such laws.
Item 3. Source and Amount of Funds or Other Consideration.
-------------------------------------------------
The funds used in purchasing the aggregate of 300,000 of the shares of
the Company's Common Stock reported herein as beneficially owned by the Dennises
were drawn from the personal funds of the Dennises. The aggregate purchase price
of such 300,000 shares was approximately $2,494,112.50, net of all commissions,
markups, markdowns, related charges and taxes.
The funds used in purchasing the aggregate of 501,000 of the shares of
the Company's Common Stock reported herein as beneficially owned by the Szymiks
were drawn from the personal funds of the Szymiks. The aggregate purchase price
of such 501,000 shares was approximately $3,896,187.50, net of all commissions,
markups, markdowns, related charges and taxes.
The 801,000 shares of the Company's Common Stock reported herein as
being beneficially owned by Advisors was the product of the agreement between
Mr. Dennis and Mr. Szymik to form Advisors, as described in Items 4 and 6.
Item 4. Purpose of Transaction.
----------------------
Each of the Dennises and the Szymiks acquired the shares of the
Company's Common Stock for investment purposes and to acquire a significant
equity position in the Company because they individually considered the
Company's Common Stock to be undervalued in comparison to other similar
companies in its peer group. On May 14, 1996, Mr. Dennis and Mr. Szymik agreed
to form Advisors, agreeing to cooperate in decisions relating to the Company
Common Stock under the name "Telecommunications Capital Advisors," but reserving
to the Dennises and Szymiks, respectively, the right to make independent
decisions regarding their respective shares of Company Common Stock. Mr. Dennis
and Mr. Szymik expect that Advisors will collectively manage their individual
shares so as to maximize shareholder value. Depending upon its evaluation of the
Company's business prospects and financial condition, the market for the
Company's Common Stock, general economic conditions and other factors that it
may deem material to its investment decision, Advisors may acquire additional
shares of the Company's Common Stock in the open market, in private transactions
or by any other permissible means or may dispose of all or a portion of the
shares of the Company's Common Stock which are presently owned or hereafter may
be acquired.
<PAGE>
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CUSIP NO. 00059563X1 13D Page 8 of 14 Pages
----------------------- ---------------------
Subject to the same considerations as described in the first paragraph
of this Item 4, Advisors may suggest to the Company the formation of strategic
alliances or other transactions designed to maximize shareholder value,
including the possible sale of the Company to a third party.
In furtherance of the goal of maximizing shareholder value,
discussions have taken place between the Company and Mr. Dennis regarding the
current composition of the Board of Directors of the Company.
The Dennises and Szymiks each may also individually decide to take the
actions described above in this Item 4.
Other than as set forth in this Item or Item 6, no person identified
in Item 2 has any present plans or proposals which relate to or would result in
(a) the acquisition by any person of additional securities of the Company, or
the disposition of securities of the Company; (b) an extraordinary corporate
transaction, such as a merger, reorganization or liquidation, involving the
Company or any of its subsidiaries; (c) a sale or transfer of a material amount
of assets of the Company or of any of its subsidiaries; (d) any change in the
present Board or management of the Company, including any plans or proposals to
change the number or term of directors or to fill any existing vacancies on the
Board; (e) any material change in the present capitalization or dividend policy
of the Company; (f) any other material change in the Company's business or
corporate structure; (g) changes in the Company's charter, bylaws or instruments
corresponding thereto or other actions which may impede the acquisition of
control of the Company by any person; (h) causing a class of securities of the
Company to be delisted from a national securities exchange or to cease to be
authorized to be quoted in an inter-dealer quotation system of a registered
national securities association; (i) a class of equity securities of the Company
becoming eligible for termination of registration pursuant to Section 12(g)(4)
of the Securities Exchange Act of 1934, as amended (the "Exchange Act"); or (j)
any action similar to any of those enumerated in (a)-(i) above.
Item 5. Interest in Securities of the Issuer.
------------------------------------
(a) As of May 14, 1996, upon the formation of Advisors, Advisors
beneficially owned in the aggregate 801,000 shares of the Company's Common
Stock. Of that aggregate total, the Dennises directly own 300,000 shares of
Company Common Stock and the Szymiks directly own 501,000 such shares. Based
upon the most recently available filing by the Company with the Securities and
Exchange Commission which shows an aggregate of 15,494,180 shares of the
Company's Common Stock outstanding, the 801,000 shares beneficially owned by
Advisors constitute approximately 5.17% of the outstanding shares of the
Company's Common Stock. The shares directly owned by the Dennises and Szymiks
constitute approximately 1.94% and 3.23%, respectively, of the outstanding
shares of the Company's Common Stock.
(b) The Dennises have the sole power to vote and dispose of 300,000
shares of Company Common Stock, and the Szymiks have the sole power to vote and
dispose of 501,000 shares of Company Common Stock, subject only to the
Partnership Agreement described in Items 4 and 6. Advisors has the shared power
to vote and to dispose of 801,000 shares of the Company's Common Stock.
Pursuant to Rule 13d-3, Mr. Dennis and Mr. Szymik might also be deemed
to be beneficial owners, and might be deemed to have the power to direct the
voting or disposition of shares of the Company's Common Stock reported herein as
beneficially owned by Advisors because Mr. Dennis and Mr. Szymik are general
partners of Advisors. Under Section 13(d)(3) of the Exchange Act, Mr. Dennis and
Mr. Szymik might also be deemed to be members of a "group" with each other and
Advisors. However, neither the filing of this Schedule 13D (or amendments
hereto) nor any contents of the same shall constitute an admission that either
Mr. Dennis or Mr. Szymik is the beneficial owner of any shares of the Company's
Common Stock other than such shares as have been reported herein, or that either
is a member of a group for the purpose of Section 13(d) of the Exchange Act, or
for any other purpose whatsoever.
(c) None, other than those transactions described in Item 6 which is
incorporated herein by reference.
(d) Not applicable.
(e) Not applicable.
<PAGE>
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CUSIP NO. 00059563X1 13D Page 9 of 14 Pages
----------------------- ---------------------
Item 6. Contracts, Arrangement, Understanding or
Relationships with Respect to Securities of the Issuer.
------------------------------------------------------
John Dennis and Donald Szymik have entered into an oral partnership
agreement to be governed by Delaware law (the "Partnership Agreement") by which
they each agree to cooperate in the voting and disposition of their shares, but
reserve to the Dennises and the Szymiks, respectively, the right to make
independent decisions regarding their respective shares of Company Common Stock.
John Dennis is the owner of approximately 25% of the outstanding
shares of QAI Inc., a Minnesota corporation ("QAI"). Pursuant to negotiations
conducted by John Dennis, QAI and the Company entered into a Letter of Intent
dated December 15, 1995 (the "Letter of Intent"). Under the terms of the Letter
of Intent, QAI was to be merged with and into the Company with the current
shareholders of QAI receiving shares of Company Common Stock in consideration
thereof. In addition, pursuant to an Agreement among the shareholders of QAI
dated January 22, 1996, John Dennis would have received additional shares of
Company common stock in the event QAI were to be acquired by the Company. The
Letter of Intent was terminated as of April 23, 1996.
Item 7. Material to be Filed as Exhibits.
--------------------------------
Exhibit Number Description
-------------- -----------
1 Agreement dated as of May 16, 1996 by and between John R.
Dennis, Maryanne Dennis, Donald V. Szymik, Maureen K. Szymik
and Telecommunications Capital Advisors relating to the
joint filing of this Schedule 13D.
<PAGE>
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CUSIP NO. 00059563X1 13D Page 10 of 14 Pages
----------------------- ---------------------
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.
Date: May 16, 1996
By: /s/ John R. Dennis
---------------------------------------
Name: John R. Dennis
Title:
<PAGE>
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CUSIP NO. 00059563X1 13D Page 11 of 14 Pages
----------------------- ---------------------
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.
Date: May 16, 1996
By: /s/ Maryanne Dennis
------------------------------------
Name: Maryanne Dennis
Title:
<PAGE>
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CUSIP NO. 00059563X1 13D Page 12 of 14 Pages
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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.
Date: May 16, 1996
By: /s/ Donald V. Szymik
---------------------------------------
Name: Donald V. Szymik
Title:
<PAGE>
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CUSIP NO. 00059563X1 13D Page 13 of 14 Pages
----------------------- ---------------------
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.
Date: May 16, 1996
By: /s/ Maureen K. Szymik
------------------------------
Name: Maureen K. Szymik
Title:
<PAGE>
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CUSIP NO. 00059563X1 13D Page 14 of 14 Pages
----------------------- ---------------------
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.
Date: May 16, 1996
By: /s/ John R. Dennis
-----------------------------------
Name: John R. Dennis
Title: General Partner of Telecommunications
Capital Advisors
<PAGE>
Exhibit 1
---------
Agreement to File Jointly
Pursuant to Rule 13d-1(f)(1) promulgated by the Securities and Exchange
Commission (the "Commission") under the authority of the Securities Exchange Act
of 1934, as amended, the undersigned hereby agree as of this 16th day of May,
1996 to file jointly with the Commission, a statement on Schedule 13D, including
all amendments made thereto, relating to the beneficial ownership by the
undersigned of certain shares of MIDCOM Communications Inc.
By: /s/ John R. Dennis
Name: John R. Dennis
Title:
By: /s/ Maryanne Dennis
Name: Maryanne Dennis
Title:
By: /s/ Donald V. Szymik
Name: Donald V. Szymik
Title:
By: /s/ Maureen K. Szymik
Name: Maureen K. Szymik
Title:
By: /s/ John Dennis
Name: John R. Dennis
Title: General Partner of
Telecommunications Capital Advisors
