Introduction
This Amendment No. 1 to the Rule
13e-3
Transaction Statement on Schedule
13E-3
(the
Amendment
) amends and supplements the Transaction Statement on Schedule
13E-3
filed with the Securities and Exchange Commission (the
SEC
) on November 29, 2018 (as amended and supplemented, the
Schedule
13E-3
or
Transaction Statement
), and relates to an offer by WC SACD One Merger
Sub, Inc. to purchase all of the outstanding shares of common stock, par value $0.01 per share (the
Common Stock
) of Intersections Inc., at a price of $3.68 per Share in cash, without interest thereon and less any applicable
withholding taxes, upon the terms and subject to the conditions contained in the Offer to Purchase, dated November 29, 2018 (the
Offer to Purchase
) and the accompanying Letter of Transmittal (which, together with any
amendments or supplements thereto, constitute the
Offer
). The Offer is described in more detail in the Schedule
TO-T
tender offer statement filed with the SEC on November 29, 2018 by
the Filing Persons hereto other than Loeb Holding Corporation, Michael R. Stanfield, Stanfield Family Investments LLC, and David A. McGough (as may be amended from time to time, the
TO-T
),
which includes the Offer to Purchase and the Letter of Transmittal (together with all other exhibits attached thereto, the
Tender Offer Statement
).
Except to the extent specifically provided in this Amendment, the information set forth in the Schedule
13E-3
remains
unchanged. Unless otherwise defined herein, capitalized terms used in this Amendment shall have the meanings assigned to them in the Schedule
13E-3
or Tender Offer Statement, as applicable. All information
contained in this Amendment concerning each Filing Person has been supplied by such Filing Person.
ITEM 7
|
PURPOSES, ALTERNATIVES, REASONS AND EFFECTS
|
Item 7 of the Schedule
13E-3
is hereby amended and restated in its entirety as follows:
(a)
Purposes
. The information set forth in the Schedule 14D-9 filed by the Company, as may be amended from time to time, is
incorporated herein by reference.
(b)
Alternatives
. The information set forth in the Schedule 14D-9 filed by the Company, as may be
amended from time to time, is incorporated herein by reference.
(c)
Reasons
. The information set forth in the Schedule 14D-9 filed
by the Company, as may be amended from time to time, is incorporated herein by reference.
(d)
Effects
. The information set forth in
the Schedule 14D-9 filed by the Company, as may be amended from time to time, is incorporated herein by reference.
Effects of the Offer
and the Merger on the Filing Persons
Loeb Holding Corporation
. As of November 15, 2018, LHCs direct interest in the
net book value and net earnings or loss of the Company, as a result of its beneficial ownership of 11,002,127 shares of Common Stock (which consists of 9,680,541 shares of Common Stock held by LHC and 1,321,586 shares of Common Stock issuable upon
conversion of LHCs Notes (as defined in the Tender Offer Statement)), was approximately 42.7% (which represents its beneficial ownership of shares of Common Stock calculated in accordance with Rule
13d-3
of the Securities Exchange Act of 1934). The Companys net book value as of December 31, 2017 was $594,000 and the Companys net loss for the fiscal year ended December 31, 2017 was $14,324,000. Accordingly, as of
December 31, 2017, the interest of LHC in the Companys net book value was $253,638, and its interest in the Companys net loss was $6,116,348 for the fiscal year ended December 31, 2017.
Immediately following the consummation of the Merger, the direct interest of LHC in the net book value and net earnings or loss of the Company
will be approximately 20.9%, which represents its pro forma beneficial ownership in WC SACD immediately following the consummation of the Merger. Based on the foregoing, assuming the Merger had been consummated on December 31, 2017, the
interest of LHC in the Companys net book value would have been $124,146, and LHCs interest in the Companys net loss would have been $2,993,716 for the fiscal year ended December 31, 2017. Immediately following the consummation
of the iSub Contribution (as defined in the Tender Offer Statement), the direct interest of LHC in the net book value and net earnings or loss of the Company will be approximately 15.8%, which represents its pro forma beneficial ownership in the
Company once the Company becomes an indirect subsidiary of WC SACD and iSubscribed. Based on the foregoing, assuming the Merger and the iSub Contribution had been consummated on December 31, 2017, the interest of LHC in the Companys net
book value would have been $93,852, and LHCs interest in the Companys net loss would have been $2,263,192 for the fiscal year ended December 31, 2017.
Stanfield
. As of November 15, 2018, Stanfields direct interest in the net book value and net earnings or loss of the Company,
as a result of his beneficial ownership of 4,200,047 shares of Common Stock, was approximately 15.5% (which consists of 998,362 shares of Common Stock, 2,623,839 shares of Common Stock that Stanfield has the right to acquire, within 60 days of such
date, upon the exercise of stock options, vesting of restricted stock unit awards or otherwise, plus 577,846 shares of Common Stock held by SFI LLC, of which Stanfield is the managing member), which represents Stanfields beneficial ownership
of shares of Common Stock (calculated in accordance with Rule
13d-3
under the Securities Exchange Act of 1934). Stanfield and his wife own a 55% interest in SFI LLC, and trusts for the benefit of their
children own the remaining 45% interest. Stanfield disclaims beneficial ownership of the shares held by SFI LLC except to the extent of his pecuniary interest therein. The Companys net book value as of December 31, 2017 was $594,000 and
the Companys net loss for the fiscal year ended December 31, 2017 was $14,324,000. Accordingly, as of December 31, 2017, the interest of Stanfield in the Companys net book value was $92,070, and his interest in the
Companys net loss was $2,220,220 for the fiscal year ended December 31, 2017.