UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
SCHEDULE 13G
Under the Securities Exchange Act of 1934
(Amendment No._____)*
RATEXCHANGE CORPORATION
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(Name of Issuer)
COMMON STOCK, PAR VALUE $0.0001 PER SHARE
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(Title of Class of Securities)
7540911060
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(CUSIP Number)
APRIL 3, 2003
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(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)
(Continued on the following pages)
(Page 1 of 12 Pages)
* 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 the disclosures provided in a prior cover page.
The information required in 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).
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CUSIP No. 754091106 13G Page 2 of 12 Pages
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1. Names of Reporting Persons
I.R.S. Identification Nos. of Above Persons (entities only)
Highfields Capital Management LP
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2. Check the Appropriate Box If a Member of a Group (See Instructions)
(a) [_]
(b) [_]
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3. SEC Use Only
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4. Citizenship or Place of Organization
Delaware
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5. Sole Voting Power 2,837,682
NUMBER OF
SHARES -------------------------------------------------------------
BENEFICIALLY 6. Shared Voting Power --0--
OWNED BY
EACH -------------------------------------------------------------
REPORTING 7. Sole Dispositive Power 2,837,682
PERSON
WITH -------------------------------------------------------------
8. Shared Dispositive Power --0--
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9. Aggregate Amount Beneficially Owned by Each Reporting Person
2,837,682
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10. Check Box If the Aggregate Amount in Row (9) Excludes Certain Shares
(See Instructions) [_]
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11. Percent of Class Represented by Amount in Row (9)
9.9%
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12. Type of Reporting Person (See Instructions)
PN
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CUSIP No. 754091106 13G Page 3 of 12 Pages
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1. Names of Reporting Persons
I.R.S. Identification Nos. of Above Persons (entities only)
Highfields GP LLC
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2. Check the Appropriate Box If a Member of a Group (See Instructions)
(a) [_]
(b) [_]
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3. SEC Use Only
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4. Citizenship or Place of Organization
Delaware
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5. Sole Voting Power 2,837,682
NUMBER OF
SHARES -------------------------------------------------------------
BENEFICIALLY 6. Shared Voting Power --0--
OWNED BY
EACH -------------------------------------------------------------
REPORTING 7. Sole Dispositive Power 2,837,682
PERSON
WITH -------------------------------------------------------------
8. Shared Dispositive Power --0--
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9. Aggregate Amount Beneficially Owned by Each Reporting Person
2,837,682
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10. Check Box If the Aggregate Amount in Row (9) Excludes Certain Shares
(See Instructions) [_]
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11. Percent of Class Represented by Amount in Row (9)
9.9%
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12. Type of Reporting Person (See Instructions)
OO
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CUSIP No. 754091106 13G Page 4 of 12 Pages
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1. Names of Reporting Persons
I.R.S. Identification Nos. of Above Persons (entities only)
Jonathon S. Jacobson
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2. Check the Appropriate Box If a Member of a Group (See Instructions)
(a) [_]
(b) [_]
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3. SEC Use Only
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4. Citizenship or Place of Organization
United States of America
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5. Sole Voting Power 2,837,682
NUMBER OF
SHARES -------------------------------------------------------------
BENEFICIALLY 6. Shared Voting Power --0--
OWNED BY
EACH -------------------------------------------------------------
REPORTING 7. Sole Dispositive Power 2,837,682
PERSON
WITH -------------------------------------------------------------
8. Shared Dispositive Power --0--
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9. Aggregate Amount Beneficially Owned by Each Reporting Person
2,837,682
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10. Check Box If the Aggregate Amount in Row (9) Excludes Certain Shares
(See Instructions) [_]
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11. Percent of Class Represented by Amount in Row (9)
9.9%
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12. Type of Reporting Person (See Instructions)
IN
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CUSIP No. 754091106 13G Page 5 of 12 Pages
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1. Names of Reporting Persons
I.R.S. Identification Nos. of Above Persons (entities only)
Richard L. Grubman
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2. Check the Appropriate Box If a Member of a Group (See Instructions)
(a) [_]
(b) [_]
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3. SEC Use Only
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4. Citizenship or Place of Organization
United States of America
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5. Sole Voting Power 2,837,682
NUMBER OF
SHARES -------------------------------------------------------------
BENEFICIALLY 6. Shared Voting Power --0--
OWNED BY
EACH -------------------------------------------------------------
REPORTING 7. Sole Dispositive Power 2,837,682
PERSON
WITH -------------------------------------------------------------
8. Shared Dispositive Power --0--
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9. Aggregate Amount Beneficially Owned by Each Reporting Person
2,837,682
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10. Check Box If the Aggregate Amount in Row (9) Excludes Certain Shares
(See Instructions) [_]
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11. Percent of Class Represented by Amount in Row (9)
9.9%
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12. Type of Reporting Person (See Instructions)
IN
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CUSIP No. 754091106 13G Page 6 of 12 Pages
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1. Names of Reporting Persons
I.R.S. Identification Nos. of Above Persons (entities only)
Highfields Capital Ltd.
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2. Check the Appropriate Box If a Member of a Group (See Instructions)
(a) [_]
(b) [_]
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3. SEC Use Only
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4. Citizenship or Place of Organization
Cayman Islands, B.W.I.
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5. Sole Voting Power 1,986,377
NUMBER OF
SHARES -------------------------------------------------------------
BENEFICIALLY 6. Shared Voting Power --0--
OWNED BY
EACH -------------------------------------------------------------
REPORTING 7. Sole Dispositive Power 1,986,377
PERSON
WITH -------------------------------------------------------------
8. Shared Dispositive Power --0--
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9. Aggregate Amount Beneficially Owned by Each Reporting Person
1,986,377
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10. Check Box If the Aggregate Amount in Row (9) Excludes Certain Shares
(See Instructions) [_]
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11. Percent of Class Represented by Amount in Row (9)
7.2%
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12. Type of Reporting Person (See Instructions)
PN
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CUSIP No. 754091106 13G Page 7 of 12 Pages
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On April 3, 2003, Ratexchange Corporation (the "Issuer") completed a private
placement financing (the "Financing") in which the Funds (as defined below)
participated. In connection with the Financing, the Issuer issued shares of
Series B convertible preferred stock, convertible promissory notes and warrants
to purchase shares of Common Stock, par value $0.0001 per share, of the Issuer
(the "Common Stock" and, together with the Series B convertible preferred stock
and the convertible promissory notes, the "Securities"). The Series B
convertible preferred stock and convertible promissory notes are convertible
under certain circumstances into shares of Common Stock. As of April 11, 2003,
the maximum number of shares of Common Stock that the Funds would be able to
acquire, in the aggregate, upon conversion or exercise of the Securities within
sixty (60) days is 2,837,682 shares. The information set forth herein regarding
percentages of beneficial ownership is based upon information obtained from the
Issuer regarding the number of shares of Common Stock outstanding as of April 3,
2003.
Item 1(a). Name of Issuer:
Ratexchange Corporation
Item 1(b). Address of Issuer's Principal Executive Offices:
100 Pine Street, Suite 500, San Francisco, California 94111
Item 2(a). Name of Person Filing:
This statement is being filed by the following persons with
respect to the shares of Common Stock of the Issuer directly
owned by Highfields Capital I LP, Highfields Capital II LP and
Highfields Capital Ltd. (collectively, the "Funds"):
(i) Highfields Capital Management LP, a Delaware limited
partnership ("Highfields Capital Management") and
investment manager to each of the Funds,
(ii) Highfields GP LLC, a Delaware limited liability
company ("Highfields GP") and the General Partner of
Highfields Capital Management,
(iii) Jonathon S. Jacobson, a Managing Member of Highfields
GP, and
(iv) Richard L. Grubman, a Managing Member of Highfields
GP.
This statement is also being filed by Highfields Capital Ltd.,
an exempted limited company organized under the laws of the
laws of the Cayman Islands, B.W.I., with respect to the shares
of Common Stock of the Issuer beneficially owned by Highfields
Capital Ltd. (which shares of Common Stock are also included
in the filings for Highfields Capital Management, Highfields
GP, Mr. Jacobson and Mr. Grubman).
Highfields Capital Management, Highfields GP, Mr. Jacobson,
Mr. Grubman and Highfields Capital Ltd. are sometimes
individually referred to herein as a "Reporting Person" and
collectively as the "Reporting Persons."
Item 2(b). Address of Principal Business Office or, if None, Residence:
Address for Highfields Capital Management, Highfields GP,
Mr. Jacobson and Mr. Grubman:
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CUSIP No. 754091106 13G Page 8 of 12 Pages
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c/o Highfields Capital Management
200 Clarendon Street, 51st Floor
Boston, Massachusetts 02116
Address for Highfields Capital Ltd.:
c/o Goldman Sachs (Cayman) Trust, Limited
Harbour Centre, Second Floor
George Town, Grand Cayman
Cayman Islands, B.W.I.
Item 2(c). Citizenship:
Highfields Capital Management - Delaware
Highfields GP - Delaware
Jonathon S. Jacobson - United States
Richard L. Grubman - United States
Highfields Capital Ltd. - Cayman Islands, B.W.I.
Item 2(d). Title of Class of Securities:
Common Stock, par value $0.0001 per share
Item 2(e). CUSIP Number:
754091106
Item 3. If this Statement is Filed Pursuant to Rule 13d-1(b), or
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
ss.240.13d-1(b)(1)(ii)(E);
(f) |_| An employee benefit plan or endowment
fund in accordance with
ss.240.13d-1(b)(1)(ii)(F);
(g) |_| A parent holding company or control
person in accordance with
ss.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);
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CUSIP No. 754091106 13G Page 9 of 12 Pages
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(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
ss.240.13d-1(b)(1)(ii)(J).
Item 4. Ownership.
Provide the following information regarding the aggregate
number and percentage of the class of securities of the issuer
identified in Item 1.
For Highfields Capital Management, Highfields GP,
Mr. Jacobson and Mr. Grubman:
(a) Amount beneficially owned: 2,837,682 shares of Common
Stock
(b) Percent of class: 9.9%
(c) Number of shares as to which such person has:
(i) Sole power to vote or to direct the vote 2,837,682
(ii) Shared power to vote or to direct the vote --0--
(iii) Sole power to dispose or to direct the disposition
of 2,837,682
(iv) Shared power to dispose or to direct the
disposition of --0--
For Highfields Capital Ltd.:
(a) Amount beneficially owned: 1,986,377 shares of Common
Stock
(b) Percent of class: 7.2%
(c) Number of shares as to which such person has:
(i) Sole power to vote or to direct the vote 1,986,377
(ii) Shared power to vote or to direct the vote --0--
(iii) Sole power to dispose or to direct the disposition
of 1,986,377
(iv) Shared power to dispose or to direct the
disposition of --0--
Item 5. Ownership of Five Percent or Less of a Class.
Not applicable.
Item 6. Ownership of More than Five Percent on Behalf of Another
Person.
The shares beneficially owned by Highfields Capital
Management, Highfields GP, Mr. Jacobson and Mr. Grubman are
beneficially owned by the Funds. Highfields Capital Ltd.
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CUSIP No. 754091106 13G Page 10 of 12 Pages
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beneficially owns 7.2% of the shares; both Highfields Capital
I LP and Highfields Capital II LP individually own less than
5% of the shares. Highfields Capital Management serves as the
investment manager to each of the Funds. Each of Highfields
Capital Management, Highfields GP, Mr. Jacobson and Mr.
Grubman has the power to direct the dividends from or the
proceeds of the sale of the shares owned by the Funds.
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.
Not applicable.
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.
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CUSIP No. 754091106 13G Page 11 of 12 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.
April 11, 2003
---------------------------------------------
Date
HIGHFIELDS CAPITAL MANAGEMENT LP
By: Highfields GP LLC, its General Partner
/s/ Kenneth H. Colburn
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Signature
Kenneth H. Colburn, Authorized Signatory
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Name/Title
HIGHFIELDS GP LLC
/s/ Kenneth H. Colburn
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Signature
Kenneth H. Colburn, Authorized Signatory
---------------------------------------------
Name/Title
JONATHON S. JACOBSON
/s/ Kenneth H. Colburn
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Signature
Kenneth H. Colburn, Authorized Signatory
---------------------------------------------
Name/Title
RICHARD L. GRUBMAN
/s/ Kenneth H. Colburn
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Signature
Kenneth H. Colburn, Authorized Signatory
---------------------------------------------
Name/Title
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CUSIP No. 754091106 13G Page 12 of 12 Pages
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HIGHFIELDS CAPITAL LTD.
By: Highfields Capital Management LP,
its Investment Manager
By: Highfields GP LLC, its General Partner
/s/ Kenneth H. Colburn
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Signature
Kenneth H. Colburn, Authorized Signatory
---------------------------------------------
Name/Title