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0001104659-09-065997.txt : 20091120
0001104659-09-065997.hdr.sgml : 20091120
20091119174917
ACCESSION NUMBER: 0001104659-09-065997
CONFORMED SUBMISSION TYPE: SC 13D
PUBLIC DOCUMENT COUNT: 2
FILED AS OF DATE: 20091120
DATE AS OF CHANGE: 20091119
GROUP MEMBERS: DAVID I. WAHRHAFTIG
GROUP MEMBERS: FRANK J. LOVERRO
GROUP MEMBERS: FRANK K. BYNUM, JR.
GROUP MEMBERS: FRANK T. NICKELL
GROUP MEMBERS: GEORGE E. MATELICH
GROUP MEMBERS: JAMES J. CONNORS II
GROUP MEMBERS: KELSO GP, VI LLC
GROUP MEMBERS: KEP VI, LLC
GROUP MEMBERS: MICHAEL B. GOLDBERG
GROUP MEMBERS: PHILIP E. BERNEY
GROUP MEMBERS: THOMAS R. WALL, IV
FILED BY:
COMPANY DATA:
COMPANY CONFORMED NAME: KELSO INVESTMENT ASSOCIATES VI L P
CENTRAL INDEX KEY: 0001141448
FILING VALUES:
FORM TYPE: SC 13D
BUSINESS ADDRESS:
STREET 1: 320 PARK AVENUE 24TH FLOOR
CITY: NEW YORK CITY
STATE: NY
ZIP: 10022
SUBJECT COMPANY:
COMPANY DATA:
COMPANY CONFORMED NAME: WASTE SERVICES, INC.
CENTRAL INDEX KEY: 0001065736
STANDARD INDUSTRIAL CLASSIFICATION: REFUSE SYSTEMS [4953]
IRS NUMBER: 000000000
STATE OF INCORPORATION: A6
FISCAL YEAR END: 1231
FILING VALUES:
FORM TYPE: SC 13D
SEC ACT: 1934 Act
SEC FILE NUMBER: 005-57445
FILM NUMBER: 091196734
BUSINESS ADDRESS:
STREET 1: 1122 INTERNATIONAL BLVD., SUITE 601
CITY: BURLINGTON
STATE: A6
ZIP: L7L 6Z8
BUSINESS PHONE: 9053191237
MAIL ADDRESS:
STREET 1: 1122 INTERNATIONAL BLVD., SUITE 601
CITY: BURLINGTON
STATE: A6
ZIP: L7L 6Z8
FORMER COMPANY:
FORMER CONFORMED NAME: CAPITAL ENVIRONMENTAL RESOURCE INC
DATE OF NAME CHANGE: 19990421
SC 13D
1
a09-33813_1sc13d.htm
SC 13D
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UNITED STATES
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SECURITIES AND EXCHANGE COMMISSION
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Washington, D.C. 20549
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SCHEDULE 13D
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Under the Securities Exchange Act
of 1934
(Name of Issuer)
Common
Stock, $.01 par value
(Title of Class of
Securities)
(CUSIP Number)
James
J. Connors II
c/o
Kelso & Company
320
Park Avenue
24th Floor
New
York, New York 10022
(212)
751-3939
(Name, Address and
Telephone Number of Person
Authorized to Receive Notices and Communications)
(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 that is the subject of this Schedule 13D, and is filing this
schedule because of §§240.13d-1(e), 240.13d-1(f) or 240.13d-1(g), check the
following box. o
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CUSIP No. 941075103
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1
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Name of Reporting Person.
Kelso Investment Associates VI, L.P.
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2
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Check the Appropriate Box
if a Member of a Group (See Instructions)
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(a)
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o
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(b)
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x
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3
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SEC Use Only
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4
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Source of Funds (See
Instructions)
OO
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5
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Check if Disclosure of Legal Proceedings Is
Required Pursuant to Items 2(d) or 2(e)
o
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6
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Citizenship or Place of Organization
Delaware
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Number of
Shares
Beneficially
Owned by
Each
Reporting
Person With
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7
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Sole Voting Power
0 shares
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8
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Shared Voting Power
5,278,070(1) shares
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9
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Sole Dispositive Power
0 shares
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10
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Shared Dispositive Power
5,278,070(1) shares
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11
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Aggregate Amount
Beneficially Owned by Each Reporting Person
5,278,070(1) shares
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12
|
Check if the Aggregate
Amount in Row (11) Excludes Certain Shares (See Instructions)
o
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13
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Percent of Class
Represented by Amount in Row (11);
11.4% (1)(2)
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14
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Type of Reporting Person
(See Instructions)
PN
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2
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CUSIP No. 941075103
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1
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Name of Reporting Person.
Kelso GP VI, LLC
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2
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Check the Appropriate Box
if a Member of a Group (See Instructions)
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(a)
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o
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(b)
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x
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3
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SEC Use Only
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4
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Source of Funds (See
Instructions)
OO
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5
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Check if Disclosure of Legal Proceedings Is
Required Pursuant to Items 2(d) or 2(e)
o
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6
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Citizenship or Place of Organization
Delaware
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Number of
Shares
Beneficially
Owned by
Each
Reporting
Person With
|
7
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Sole Voting Power
0 shares
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8
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Shared Voting Power
5,278,070(1) shares
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9
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Sole Dispositive Power
0 shares
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10
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Shared Dispositive Power
5,278,070(1) shares
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11
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Aggregate Amount
Beneficially Owned by Each Reporting Person
5,278,070(1) shares
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12
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Check if the Aggregate
Amount in Row (11) Excludes Certain Shares (See Instructions)
o
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13
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Percent of Class
Represented by Amount in Row (11);
11.4%(1)(2)
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14
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Type of Reporting Person
(See Instructions)
OO (Limited Liability Company)
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3
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CUSIP No. 941075103
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1
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Name of Reporting Person.
KEP VI, LLC
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2
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Check the Appropriate Box
if a Member of a Group (See Instructions)
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(a)
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o
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(b)
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x
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3
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SEC Use Only
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4
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Source of Funds (See
Instructions)
OO
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5
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Check if Disclosure of Legal Proceedings Is
Required Pursuant to Items 2(d) or 2(e)
o
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6
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Citizenship or Place of Organization
Delaware
|
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Number of
Shares
Beneficially
Owned by
Each
Reporting
Person With
|
7
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Sole Voting Power
0 shares
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8
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Shared Voting Power
5,278,070(1) shares
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9
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Sole Dispositive Power
0 shares
|
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10
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Shared Dispositive Power
5,278,070(1) shares
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11
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Aggregate Amount
Beneficially Owned by Each Reporting Person
5,278,070(1) shares
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12
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Check if the Aggregate
Amount in Row (11) Excludes Certain Shares (See Instructions)
o
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13
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Percent of Class
Represented by Amount in Row (11);
11.4%(1)(2)
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14
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Type of Reporting Person
(See Instructions)
OO (Limited Liability Company)
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4
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CUSIP No. 941075103
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1
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Name of Reporting Person.
Frank T. Nickell
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2
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Check the Appropriate Box
if a Member of a Group (See Instructions)
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(a)
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o
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(b)
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x
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3
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SEC Use Only
|
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4
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Source of Funds (See
Instructions)
OO
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5
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Check if Disclosure of Legal Proceedings Is
Required Pursuant to Items 2(d) or 2(e)
o
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6
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Citizenship or Place of Organization
United States of America
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Number of
Shares
Beneficially
Owned by
Each
Reporting
Person With
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7
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Sole Voting Power
242,932 shares
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8
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Shared Voting Power
5,278,070(1) shares
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9
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Sole Dispositive Power
242,932 shares
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10
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Shared Dispositive Power
5,278,070(1) shares
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11
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Aggregate Amount
Beneficially Owned by Each Reporting Person
5,521,002(1) shares
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12
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Check if the Aggregate
Amount in Row (11) Excludes Certain Shares (See Instructions)
o
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13
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Percent of Class
Represented by Amount in Row (11);
11.9%(1)(2)
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14
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Type of Reporting Person
(See Instructions)
IN
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5
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CUSIP No. 941075103
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1
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Name of Reporting Person.
Thomas R. Wall, IV
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2
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Check the Appropriate Box
if a Member of a Group (See Instructions)
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(a)
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o
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(b)
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x
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3
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SEC Use Only
|
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4
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Source of Funds (See
Instructions)
OO
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5
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Check if Disclosure of Legal Proceedings Is Required
Pursuant to Items 2(d) or 2(e) o
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6
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Citizenship or Place of Organization
United States of America
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Number of
Shares
Beneficially
Owned by
Each
Reporting
Person With
|
7
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Sole Voting Power
38,830 shares
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8
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Shared Voting Power
5,278,070(1) shares
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9
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Sole Dispositive Power
38,830 shares
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10
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Shared Dispositive Power
5,278,070(1) shares
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11
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Aggregate Amount
Beneficially Owned by Each Reporting Person
5,316,900(1) shares
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12
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Check if the Aggregate
Amount in Row (11) Excludes Certain Shares (See Instructions)
o
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13
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Percent of Class
Represented by Amount in Row (11);
11.5%(1)(2)
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14
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Type of Reporting Person
(See Instructions)
IN
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6
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CUSIP No. 941075103
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1
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Name of Reporting Person.
George E. Matelich
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2
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Check the Appropriate Box
if a Member of a Group (See Instructions)
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(a)
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o
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(b)
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x
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3
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SEC Use Only
|
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4
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Source of Funds (See
Instructions)
OO
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5
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Check if Disclosure of Legal Proceedings Is
Required Pursuant to Items 2(d) or 2(e)
o
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6
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Citizenship or Place of Organization
United States of America
|
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|
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Number of
Shares
Beneficially
Owned by
Each
Reporting
Person With
|
7
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Sole Voting Power
255,107 shares
|
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8
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Shared Voting Power
5,278,070(1) shares
|
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9
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Sole Dispositive Power
255,107 shares
|
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10
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Shared Dispositive Power
5,278,070(1) shares
|
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|
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11
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Aggregate Amount
Beneficially Owned by Each Reporting Person
5,533,177 (1) shares
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12
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Check if the Aggregate
Amount in Row (11) Excludes Certain Shares (See Instructions)
o
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13
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Percent of Class
Represented by Amount in Row (11);
12.0%(1)(2)
|
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14
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Type of Reporting Person
(See Instructions)
IN
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7
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CUSIP No. 941075103
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1
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Name of Reporting Person.
Frank K. Bynum, Jr.
|
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2
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Check the Appropriate Box
if a Member of a Group (See Instructions)
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(a)
|
o
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(b)
|
x
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3
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SEC Use Only
|
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|
|
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4
|
Source of Funds (See
Instructions)
OO
|
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|
|
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5
|
Check if Disclosure of Legal Proceedings Is
Required Pursuant to Items 2(d) or 2(e)
o
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|
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|
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6
|
Citizenship or Place of Organization
United States of America
|
|
|
|
Number of
Shares
Beneficially
Owned by
Each
Reporting
Person With
|
7
|
Sole Voting Power
19,415 shares
|
|
|
|
8
|
Shared Voting Power
5,278,070(1) shares
|
|
|
|
9
|
Sole Dispositive Power
19,415 shares
|
|
|
|
10
|
Shared Dispositive Power
5,278,070(1) shares
|
|
|
|
|
11
|
Aggregate Amount
Beneficially Owned by Each Reporting Person
5,297,485(1) shares
|
|
|
|
|
12
|
Check if the Aggregate
Amount in Row (11) Excludes Certain Shares (See Instructions)
o
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|
|
|
|
13
|
Percent of Class
Represented by Amount in Row (11);
11.5%(1)(2)
|
|
|
|
|
14
|
Type of Reporting Person
(See Instructions)
IN
|
|
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8
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CUSIP No. 941075103
|
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1
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Name of Reporting Person.
Philip E. Berney
|
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2
|
Check the Appropriate Box
if a Member of a Group (See Instructions)
|
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|
(a)
|
o
|
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(b)
|
x
|
|
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3
|
SEC Use Only
|
|
|
|
|
4
|
Source of Funds (See
Instructions)
OO
|
|
|
|
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5
|
Check if Disclosure of Legal Proceedings Is
Required Pursuant to Items 2(d) or 2(e)
o
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|
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6
|
Citizenship or Place of Organization
United States of America
|
|
|
|
Number of
Shares
Beneficially
Owned by
Each
Reporting
Person With
|
7
|
Sole Voting Power
19,415 shares
|
|
|
|
8
|
Shared Voting Power
5,278,070(1) shares
|
|
|
|
9
|
Sole Dispositive Power
19,415 shares
|
|
|
|
10
|
Shared Dispositive Power
5,278,070(1) shares
|
|
|
|
|
11
|
Aggregate Amount
Beneficially Owned by Each Reporting Person
5,297,485(1) shares
|
|
|
|
|
12
|
Check if the Aggregate
Amount in Row (11) Excludes Certain Shares (See Instructions)
o
|
|
|
|
|
13
|
Percent of Class
Represented by Amount in Row (11);
11.5%(1)(2)
|
|
|
|
|
14
|
Type of Reporting Person
(See Instructions)
IN
|
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9
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CUSIP No. 941075103
|
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1
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Name of Reporting Person.
Frank J. Loverro
|
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2
|
Check the Appropriate Box
if a Member of a Group (See Instructions)
|
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(a)
|
o
|
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(b)
|
x
|
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3
|
SEC Use Only
|
|
|
|
|
4
|
Source of Funds (See
Instructions)
OO
|
|
|
|
|
5
|
Check if Disclosure of Legal Proceedings Is
Required Pursuant to Items 2(d) or 2(e)
o
|
|
|
|
|
6
|
Citizenship or Place of Organization
United States of America
|
|
|
|
Number of
Shares
Beneficially
Owned by
Each
Reporting
Person With
|
7
|
Sole Voting Power
2,913 shares
|
|
|
|
8
|
Shared Voting Power
5,278,070(1) shares
|
|
|
|
9
|
Sole Dispositive Power
2,913 shares
|
|
|
|
10
|
Shared Dispositive Power
5,278,070(1) shares
|
|
|
|
|
11
|
Aggregate Amount
Beneficially Owned by Each Reporting Person
5,280,983(1) shares
|
|
|
|
|
12
|
Check if the Aggregate
Amount in Row (11) Excludes Certain Shares (See Instructions)
o
|
|
|
|
|
13
|
Percent of Class Represented
by Amount in Row (11);
11.4%(1)(2)
|
|
|
|
|
14
|
Type of Reporting Person
(See Instructions)
IN
|
|
|
|
|
|
|
10
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CUSIP No. 941075103
|
|
|
|
|
1
|
Name of Reporting Person.
James J. Connors, II
|
|
|
|
|
2
|
Check the Appropriate Box
if a Member of a Group (See Instructions)
|
|
|
|
(a)
|
o
|
|
|
|
(b)
|
x
|
|
|
|
|
3
|
SEC Use Only
|
|
|
|
|
4
|
Source of Funds (See
Instructions)
OO
|
|
|
|
|
5
|
Check if Disclosure of Legal Proceedings Is
Required Pursuant to Items 2(d) or 2(e)
o
|
|
|
|
|
6
|
Citizenship or Place of Organization
United States of America
|
|
|
|
Number of
Shares
Beneficially
Owned by
Each
Reporting
Person With
|
7
|
Sole Voting Power
4,854 shares
|
|
|
|
8
|
Shared Voting Power
5,278,070(1) shares
|
|
|
|
9
|
Sole Dispositive Power
4,854 shares
|
|
|
|
10
|
Shared Dispositive Power
5,278,070(1) shares
|
|
|
|
|
11
|
Aggregate Amount
Beneficially Owned by Each Reporting Person
5,282,924(1) shares
|
|
|
|
|
12
|
Check if the Aggregate
Amount in Row (11) Excludes Certain Shares (See Instructions)
o
|
|
|
|
|
13
|
Percent of Class
Represented by Amount in Row (11);
11.4%(1)(2)
|
|
|
|
|
14
|
Type of Reporting Person
(See Instructions)
IN
|
|
|
|
|
|
|
11
|
CUSIP No. 941075103
|
|
|
|
|
1
|
Name of Reporting Person.
Michael B. Goldberg
|
|
|
|
|
2
|
Check the Appropriate Box
if a Member of a Group (See Instructions)
|
|
|
|
(a)
|
o
|
|
|
|
(b)
|
x
|
|
|
|
|
3
|
SEC Use Only
|
|
|
|
|
4
|
Source of Funds (See
Instructions)
OO
|
|
|
|
|
5
|
Check if Disclosure of Legal Proceedings Is
Required Pursuant to Items 2(d) or 2(e)
o
|
|
|
|
|
6
|
Citizenship or Place of Organization
United States of America
|
|
|
|
Number of
Shares
Beneficially
Owned by
Each
Reporting
Person With
|
7
|
Sole Voting Power
0 shares
|
|
|
|
8
|
Shared Voting Power
5,278,070(1) shares
|
|
|
|
9
|
Sole Dispositive Power
0 shares
|
|
|
|
10
|
Shared Dispositive Power
5,278,070(1) shares
|
|
|
|
|
11
|
Aggregate Amount
Beneficially Owned by Each Reporting Person
5,278,070(1) shares
|
|
|
|
|
12
|
Check if the Aggregate
Amount in Row (11) Excludes Certain Shares (See Instructions)
o
|
|
|
|
|
13
|
Percent of Class
Represented by Amount in Row (11);
11.4% (1)(2)
|
|
|
|
|
14
|
Type of Reporting Person
(See Instructions)
IN
|
|
|
|
|
|
|
12
|
CUSIP No. 941075103
|
|
|
|
|
1
|
Name of Reporting Person.
David I. Wahrhaftig
|
|
|
|
|
2
|
Check the Appropriate Box
if a Member of a Group (See Instructions)
|
|
|
|
(a)
|
o
|
|
|
|
(b)
|
x
|
|
|
|
|
3
|
SEC Use Only
|
|
|
|
|
4
|
Source of Funds (See
Instructions)
OO
|
|
|
|
|
5
|
Check if Disclosure of Legal Proceedings Is
Required Pursuant to Items 2(d) or 2(e)
o
|
|
|
|
|
6
|
Citizenship or Place of Organization
United States of America
|
|
|
|
Number of
Shares
Beneficially
Owned by
Each
Reporting
Person With
|
7
|
Sole Voting Power
0 shares
|
|
|
|
8
|
Shared Voting Power
5,278,070(1) shares
|
|
|
|
9
|
Sole Dispositive Power
0 shares
|
|
|
|
10
|
Shared Dispositive Power
5,278,070(1) shares
|
|
|
|
|
11
|
Aggregate Amount
Beneficially Owned by Each Reporting Person
5,278,070(1) shares
|
|
|
|
|
12
|
Check if the Aggregate
Amount in Row (11) Excludes Certain Shares (See Instructions)
o
|
|
|
|
|
13
|
Percent of Class
Represented by Amount in Row (11);
11.4%(1)(2)
|
|
|
|
|
14
|
Type of Reporting Person
(See Instructions)
IN
|
|
|
|
|
|
|
13
(1) Of
the 5,861,536 shares of common stock of Waste Services, Inc. reported on
this Schedule 13D, (a) 4,750,263 shares are owned by Kelso Investment
Associates VI, L.P. (KIA VI), consisting of 2,605,263 shares of common stock owned
by KIA VI and 2,145,000 shares of common stock issuable upon the exercise of
currently exercisable warrants to purchase common stock, (b) 527,807
shares of common stock are owned by KEP VI, LLC (KEP VI), consisting of
289,474 shares of common stock owned by KEP VI and 238,333 shares of common
stock issuable upon the exercise of currently exercisable warrants to purchase
common stock, (c) 242,932 shares of common stock owned by Frank T.
Nickell, (d) 38,830 shares of common stock owned by Thomas R. Wall, IV, (e) 255,107
shares owned by George E. Matelich consisting of 254,807 shares of common stock
owned by Mr. Matelich and 300 shares of common stock owned by Mr. Matelichs
children, (f) 19,415 shares of common stock owned by Frank K. Bynum, Jr.,
(g) 19,415 shares of common stock owned by Philip E. Berney, (h) 2,913
shares of common stock owned by Frank J. Loverro, and (i) 4,854 shares of
common stock owned by James J. Connors, II.
Kelso
GP VI, LLC, (GP VI) is the general partner of KIA VI and has voting and
dispositive power over the shares held by KIA VI. GP VI disclaims beneficial
ownership of the securities owned by KIA VI pursuant to Rule 13d(4) under
the Securities Exchange Act of 1934, as amended (the Act), and the inclusion
of these securities in this report shall not be deemed an admission of
beneficial ownership of all the reported securities for purposes of Sections 13(d) or
13(g) of the Act or for any other purposes.
KIA VI
and KEP VI, due to their common control, may be deemed to beneficially own the
securities owned by each other. Each of KIA VI and KEP VI disclaims beneficial
ownership of the securities owned by the other pursuant to Rule 13d(4) under
the Act and the inclusion of these securities in this report shall not be
deemed an admission of beneficial ownership of all the reported securities for
purposes of Sections 13(d) or 13(g) of the Act or for any other
purposes.
GP VI
and KEP VI, due to their common control, may be deemed to beneficially own the
securities owned by each other. GP VI disclaims beneficial ownership of the
securities owned by KEP VI pursuant to Rule 13d(4) under the Act, and
the inclusion of these securities in this report shall not be deemed an
admission of beneficial ownership of all the reported securities for purposes
of Sections 13(d) or 13(g) of the Act or for any other purposes.
Messrs. Nickell,
Wall, Matelich, Goldberg, Bynum, Wahrhaftig, Berney, Loverro and Connors may be
deemed to share beneficial ownership of securities owned by KIA VI and KEP VI,
by virtue of their status as managing members of KEP VI and GP VI, and each of
them disclaims beneficial ownership of the securities owned or deemed
beneficially owned by KIA VI, KEP VI and GP VI pursuant to Rule 13d(4) under
the Act and the inclusion of these securities in this report shall not be
deemed an admission of beneficial ownership of all the reported securities for
purposes of Sections 13(d) or 13(g) of the Act or for any other
purposes.
Each
of Messrs. Nickell, Wall, Matelich, Goldberg, Bynum, Wahrhaftig, Berney,
Loverro and Connors may be deemed to share beneficial ownership of securities
owned by each of the others and each of them disclaims beneficial ownership of
the securities owned or deemed beneficially owned by such others pursuant to Rule 13d(4) under
the Act, and the inclusion of these securities in this report shall not be
deemed an admission of beneficial ownership of all the reported securities for
purposes of Sections 13(d) or 13(g) of the Act or for any other
purposes.
Each
of GP VI, KEP VI and KIA VI may be deemed to share beneficial ownership of
securities owned by each of Messrs. Nickell, Wall, Matelich, Goldberg,
Bynum, Wahrhaftig, Berney, Loverro and Connors, and each of GP VI, KEP VI and
KIA VI disclaims beneficial ownership of the securities owned or deemed
beneficially owned by each of Messrs. Nickell, Wall, Matelich, Goldberg,
Bynum, Wahrhaftig, Berney, Loverro and Connors pursuant to Rule 13d(4) under
the Act, and the inclusion of these securities in this report shall not be
deemed an admission of beneficial ownership of all the reported securities for
purposes of Sections 13(d) or 13(g) of the Act or for any other
purposes.
Mr. Matelich
disclaims beneficial ownership of the shares owned by his children pursuant to Rule 13d(4) under
the Act and the inclusion of these securities in this report shall not be
deemed an admission of beneficial ownership of all the reported securities for
purposes of Sections 13(d) or 13(g) of the Act or for any other
purposes.
(2) Based
on 46,253,107 shares of the Companys common stock outstanding as of October 26,
2009, as stated in the Companys Quarterly Report on Form 10-Q dated October 29,
2009.
14
Item
1. Security and Issuer
This Schedule 13D is filed by Kelso GP VI, LLC; Kelso Investment
Associates VI, L.P.; KEP VI, LLC (the Kelso Entities); Frank T. Nickell;
Thomas R. Wall, IV; George E. Matelich; Michael B. Goldberg; Frank K. Bynum, Jr.;
David I. Wahrhaftig; Philip E. Berney; Frank J. Loverro; and James J. Connors, II
(together with the Kelso Entities, the Reporting Persons) and relates to the
common stock, par value $0.01 per share, of Waste Services, Inc. (the Issuer
or the Company). The Issuers
principal executive offices are located at 1122 International Blvd., Suite 601,
Burlington, Ontario, Canada L7L 6Z8.
On November 11, 2009, the Kelso Entities entered into a Voting
Agreement (the Voting Agreement) with IESI-BFC Ltd. relating to the merger
transaction proposed to be entered into between IESI-BFC Ltd. and the
Issuer. The Reporting Persons are filing
this Schedule 13D to report the Kelso Entities entry into the Voting Agreement
and the Reporting Persons respective beneficial ownership of the common stock
of the Issuer.
The terms of the Voting Agreement are described in Item 4 below and
have been previously disclosed by the filing of the Voting Agreement by
IESI-BFC Ltd. as an exhibit to its report on Form 6-K filed on November 16,
2009. In addition, the Voting Agreement
is incorporated by reference as Exhibit 99.2 hereto.
Item
2. Identity and
Background
The identity and background of the filing
persons is as follows:
|
Name
|
|
Address of
Business/Principal Office
|
|
Principal
& Business/Occupation
|
|
Jurisdiction of
Organization/
Citizenship
|
|
Kelso Investment Associates VI, L.P
|
|
c/o Kelso & Company
320 Park Avenue, 24th Floor
New York, NY 10022
|
|
Private Investment Fund
|
|
Delaware
|
|
Kelso GP VI, LLC
|
|
c/o Kelso & Company
320 Park Avenue, 24th Floor
New York, NY 10022
|
|
General Partner of Kelso Investment Associates, VI,
L.P.
|
|
Delaware
|
|
KEP VI, LLC
|
|
c/o Kelso & Company
320 Park Avenue, 24th Floor
New York, NY 10022
|
|
Private Investment Fund
|
|
Delaware
|
|
Frank T. Nickell
|
|
c/o Kelso & Company
320 Park Avenue, 24th Floor
New York, NY 10022
|
|
President & Chief Executive Officer of Kelso &
Company
|
|
United States of America
|
|
Thomas R. Wall, IV
|
|
c/o Kelso & Company
320 Park Avenue, 24th Floor
New York, NY 10022
|
|
Managing Director of Kelso & Company
|
|
United States of America
|
|
George E. Matelich
|
|
c/o Kelso & Company
320 Park Avenue, 24th Floor
New York, NY 10022
|
|
Managing Director of Kelso & Company
|
|
United States of America
|
|
Michael B. Goldberg
|
|
c/o Kelso & Company
320 Park Avenue, 24th Floor
New York, NY 10022
|
|
Managing Director of Kelso & Company
|
|
United States of America
|
|
Frank K. Bynum, Jr.
|
|
c/o Kelso & Company
320 Park Avenue, 24th Floor
New York, NY 10022
|
|
Managing Director of Kelso & Company
|
|
United States of America
|
|
David I. Wahrhaftig
|
|
c/o Kelso & Company
320 Park Avenue, 24th Floor
New York, NY 10022
|
|
Managing Director of Kelso & Company
|
|
United States of America
|
|
Philip E. Berney
|
|
c/o Kelso & Company
320 Park Avenue, 24th Floor
|
|
Managing Director of Kelso & Company
|
|
United States of America
|
15
|
|
|
New York, NY 10022
|
|
|
|
|
|
Frank J. Loverro
|
|
c/o Kelso & Company
320 Park Avenue, 24th Floor
New York, NY 10022
|
|
Managing Director of Kelso & Company
|
|
United States of America
|
|
James J. Connors, II
|
|
c/o Kelso & Company
320 Park Avenue, 24th Floor
New York, NY 10022
|
|
Managing Director and General Counsel of Kelso &
Company
|
|
United States of America
|
Kelso & Company is a firm specializing in private equity
investing.
None of the Reporting Persons has, during the last five years, been 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.
None of the Reporting Persons has, during the last
five years, been convicted in a criminal proceeding (excluding traffic
violations or similar misdemeanors).
Item
3. Source and Amount of
Funds or Other Consideration
The Reporting Persons acquired common stock of the Company as a result
of the following series of transactions:
On May 6, 2003, Kelso Investment Associates VI, L.P. (KIA VI)
and KEP VI, LLC (KEP VI) acquired 49,500 and 5,500 shares, respectively, of
the nonvoting Series A Preferred Stock of the Company, which was at the
time a wholly owned subsidiary of Capital Environmental Resource Inc., a
corporation amalgamated under the laws of the Province of Ontario, Canada (the Predecessor
Company), for aggregate consideration of $49,500,000 and $5,500,000
respectively. KIA VI and KEP VI also
received warrants to purchase an additional 6,435,000 and 715,000 shares,
respectively, of the Companys common stock at a purchase price of $3.00 per
share. The Kelso Entities obtained the
funds for the acquisition of these securities from capital contributions by
their respective partners.
Effective July 31, 2004, the Predecessor Company completed a
migration transaction pursuant to which its corporate structure was reorganized
so that the Company became the ultimate parent company of the Predecessor
Companys corporate group.
On June 26, 2006, the Company effected a one-for-three reverse
stock split relating to its common stock.
After giving effect to this stock split, KIA VI and KEP VI held warrants
to purchase 2,145,000 and 238,333 shares of the Companys common stock,
respectively, at a purchase price of $9.00 per share. All of these warrants are exercisable as of
the date hereof.
On December 15, 2006, the Company redeemed all of KIA VI and KEP
VIs shares of nonvoting Series A Preferred Stock in exchange for
2,605,263 and 289,474 shares, respectively, of the Companys common stock.
In addition to the shares of common stock and warrants to purchase
common stock held by the Kelso Entities, the other Reporting Persons are the
beneficial owners of common stock of the Company as follows: On September 7, 2001, Messrs. Nickell,
Wall, Matelich, Bynum, Berney, Loverro and Connors acquired 625,625, 100,000,
625,625, 50,000, 50,000, 7,500 and 12,500 shares of the Companys common stock,
respectively, at a price of $2.00 per share, using cash from their personal
investment funds. On February 6,
2002, Messrs. Nickell, Wall, Matelich, Bynum, Berney, Loverro and Connors
acquired 103,172, 16,489, 103,172, 8,246, 8,246, 1,238 and 2,062 shares of the
Companys common stock, respectively, at a price of $2.65 per share, using cash
from their personal investment funds.
After giving effect to these purchases and the one-for-three reverse
stock split that occurred in June 2006, Messrs. Nickell, Wall,
Matelich, Bynum, Berney, Loverro and Connors owned a total of 242,932, 38,380,
242,932, 19,415, 19,415, 2,913 and 4,854 shares of the Companys common stock,
respectively.
16
In addition to the shares of common stock and warrants to purchase
common stock held by the Reporting Persons and described above, Mr. Matelich,
who serves as a member of the Issuers board of directors, subsequently
acquired, on March 14, 2008 and March 17, 2008, 9,899 shares and 101
shares of the Companys common stock, at purchase prices of $8.00 and $7.997
per share, respectively, using cash from his personal investment funds. These purchases were effected pursuant to the
exercise of options granted to Mr. Matelich as part of his compensation
for service as a member of the Issuers board of directors. The total number of shares beneficially owned
by Mr. Matelich as of the date of this report also includes 1,875 shares
of common stock that he received upon settlement of restricted stock units that
were awarded to him as part of his compensation for service as a member of the
Issuers board of directors as well as 300 shares owned by his children. Mr. Matelich
disclaims beneficial ownership of the shares owned by his children, and this
report shall not be deemed an admission that Mr. Matelich is the
beneficial owner of these securities for any purpose.
Item
4. Purpose of
Transaction
The Kelso Entities acquired the shares of the Companys nonvoting Series A
Preferred Stock and warrants to purchase the Companys common stock as an
investment in the regular course of their business, and as a result acquired
the Companys common stock in the ordinary course of their business. The other Reporting Persons acquired the
Companys common stock as personal investments.
The Reporting Persons intend to re-examine their investment from time to
time and, depending on prevailing market conditions, other investment
opportunities, liquidity requirements or other investment considerations the
Reporting Persons deem material, the Reporting Persons may from time to time
acquire or dispose of the Companys common stock in open market or privately
negotiated transactions.
On November 11,
2009, the Issuer entered into an Agreement and Plan of Merger (the Merger
Agreement) with IESI-BFC Ltd., a corporation amalgamated under the laws of the
Province of Ontario (IESI-BFC), and IESI-BFC Merger Sub, Inc., a
Delaware corporation and a wholly-owned subsidiary of IESI-BFC (Merger Sub).
The Merger Agreement provides that, upon the terms and subject to the
conditions set forth in the Merger Agreement, Merger Sub will be merged with
and into the Issuer (the Merger). Following the Merger, the separate
corporate existence of Merger Sub will cease and the Issuer will continue as
the surviving corporation. The Merger has been approved by the board of
directors of both the Issuer and IESI-BFC.
Pursuant to the terms of
the Merger Agreement, each share of common stock of the Issuer that is
outstanding immediately prior to the date and time the Merger becomes effective
shall be canceled and extinguished and automatically converted into the right
to receive 0.5833 shares of IESI-BFC common stock (the Conversion Number).
Warrants and stock options of the Issuer will generally convert upon
consummation of the Merger and without any action on the part of the holder
into warrants and stock options with respect to the IESI-BFC common stock,
after giving effect to the Conversion Number. Cash will be paid to the Issuers
stockholders in lieu of fractional shares of IESI-BFC common stock.
The Merger Agreement also
provides that upon consummation of the Merger, IESI-BFC will appoint two
individuals, nominated by the Issuer and determined to be legally qualified and
otherwise suitable by the board of directors of IESI-BFC, acting reasonably, to
serve in such capacity, to the board of directors of IESI-BFC.
Each partys obligation
to consummate the Merger is subject to customary conditions, including, among
others, (i) approval or expiration of any waiting period under the
Hart-Scott-Rodino Antitrust Improvements Act of 1976 and the Competition Act
(Canada); (ii) absence of laws or orders of governmental authorities or
litigation prohibiting or seeking to prohibit the closing; (iii) the
declaration by the Securities and Exchange Commission (the SEC) that the Form F-4
Registration Statement registering shares of IESI-BFC common stock to be issued
in connection with the Merger has become effective; (iv) conditional
approval of the IESI-BFC common stock to be issued in the Merger for listing on
the Toronto Stock Exchange and the New York Stock Exchange; (v) approval of
the Merger Agreement by the Issuers stockholders; and (vi) receipt by the
Issuer and IESI-BFC from their respective counsel of customary opinions that
the Merger will qualify as a reorganization for US federal income tax purposes.
IESI-BFCs obligation to
consummate the Merger is also subject to certain other conditions, including,
among others, (i) subject to certain exceptions and qualifications, the
accuracy of the representations and warranties of the Issuer, (ii) performance
in all material respects of the Issuer of its obligations, (iii) absence
of a material
17
adverse
effect with respect to the Issuer; (iv) receipt of regulatory approvals on
specified terms and required consents; (v) receipt of a fairness opinion;
and (vi) that the Issuer meet certain thresholds with respect to its net
indebtedness and working capital.
The Issuers obligation
to consummate the Merger is subject to certain other conditions, including,
among others, (i) subject to certain exceptions and qualifications, the
accuracy of the representations and warranties of IESI-BFC, (ii) performance
in all material respects of IESI-BFC of its obligations, (iii) absence of
a material adverse effect with respect to IESI-BFC; (iv) receipt of a
fairness opinion; and (v) that IESI-BFC increase the consideration to be
provided to the Issuers stockholders in the event of a specified decline in
the value of IESI-BFC common stock under specified circumstances.
The foregoing description
of the Merger and the Merger Agreement is only a summary. The Merger Agreement is filed as Exhibit 2.1
to the Issuers Current Report on Form 8-K filed on November 16,
2009.
As an inducement to
IESI-BFC to enter into the Merger Agreement, certain significant shareholders
of the Issuer have agreed with IESI-BFC that they will vote in favor of the
Merger and the Merger Agreement and the approval of the other transactions
contemplated thereby, and any actions required in furtherance thereof, pursuant
to several voting agreements, each dated as of November 11, 2009, among
IESI-BFC and the applicable shareholders.
These shareholders have also agreed pursuant to such voting agreements
to vote against any extraordinary corporate transaction, such as a merger,
rights offering, reorganization, recapitalization or liquidation involving the
Issuer or any of its subsidiaries (other than the Merger), a sale or transfer
of a material amount of assets or capital stock of the Issuer or any of its
subsidiaries or any action that is intended, or would reasonably be expected,
to prevent or materially delay or otherwise interfere with the Merger and the
other transactions contemplated by the Merger Agreement.
The Kelso Entities have
entered into the Voting Agreement described in the immediately preceding
paragraph and referenced in Item 1 above, which is incorporated by reference as
Exhibit 99.2 hereto.
There can be no assurance
that the transactions described in the Merger Agreement will be consummated.
Except as described herein, the Reporting Persons have no present plans
or proposals that relate to or would result in any of the actions described in
Item 4(a) through (j) of Schedule 13D under Rule 13d-1(a).
Item
5. Interest in
Securities of the Issuer
(a) The
responses of KIA VI, KEP VI, GP VI, Frank T. Nickell, Thomas R. Wall, IV,
George E. Matelich, Michael B. Goldberg, Frank K. Bynum, Jr., David I.
Wahrhaftig, Philip E. Berney, Frank J. Loverro and James J. Connors, II
with respect to Rows 11, 12 and 13 of the cover pages of this Schedule 13D
that relate to the aggregate number and percentage of common stock (including
but not limited to footnote (1) and (2) to such information) are
incorporated herein by reference.
(b) The responses of
KIA VI, KEP VI, GP VI, Frank T. Nickell, Thomas R. Wall, IV, George E.
Matelich, Michael B. Goldberg, Frank K. Bynum, Jr., David I. Wahrhaftig,
Philip E. Berney, Frank J. Loverro and James J. Connors, II with respect
to Rows 7, 8, 9 and 10 of the cover pages of this Schedule 13D that relate
to the number of shares as to which each of the persons or entities referenced
in Item 2 above has sole power to vote or to direct the vote, shared power to
vote or to direct the vote and sole or shared power to dispose or to direct the
disposition (including but not limited to footnote (1) to such
information) are incorporated herein by reference.
(c) Except as described in this Schedule 13D,
during the past 60 days there have been no other transactions in the securities
of the Issuer effected by the persons or entities referenced in Item 2 above.
(d) Not applicable.
(e) Not applicable.
18
Item 6. Contracts, Arrangements,
Understandings or Relationships with Respect to Securities of the Issuer
The information set forth in Item 4 of this
Schedule 13D is incorporated herein by reference.
Item 7. Material to be Filed as
Exhibits
Exhibit 99.1: Joint Filing
Agreement*
Exhibit 99.2: Voting
Agreement, dated as of November 11, 2009 by and among IESI-BFC Ltd., Kelso
Investment Associates VI, L.P. and KEP VI, LLC. Incorporated by reference to Exhibit 99.4
to IESI-BFC Ltd.s Current Report on Form 6-K filed on November 16,
2009.
Exhibit 99.3: Power of
Attorney. Incorporated by reference to Exhibit 24.2
to the Reporting Persons Initial Statement of Beneficial Ownership of
Securities on Form 3, filed February 14, 2008.
*Filed herewith.
19
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.
|
|
KELSO INVESTMENT ASSOCIATES VI, L.P.
|
|
|
By: Kelso GP VI, LLC its General Partner
|
|
|
|
|
|
By:
|
/s/ James J. Connors, II
|
|
|
|
Name:
|
James J. Connors, II
|
|
|
|
Title:
|
Managing Member
|
|
|
|
|
|
|
|
KEP VI, LLC
|
|
|
|
|
|
By:
|
/s/ James J. Connors, II
|
|
|
|
Name:
|
James J. Connors, II
|
|
|
|
Title:
|
Managing Member
|
|
|
|
|
|
|
|
KELSO GP VI, LLC
|
|
|
|
|
|
By:
|
/s/ James J. Connors, II
|
|
|
|
Name:
|
James J. Connors, II
|
|
|
|
Title:
|
Managing Member
|
|
|
|
|
|
|
|
*
|
|
|
Frank T. Nickell
|
|
|
|
|
|
*
|
|
|
Thomas R. Wall, IV
|
|
|
|
|
|
*
|
|
|
George E. Matelich
|
|
|
|
|
|
*
|
|
|
Frank K. Bynum, Jr.
|
|
|
|
|
|
*
|
|
|
Philip E. Berney
|
|
|
|
|
|
*
|
|
|
Frank J. Loverro
|
|
|
|
|
|
/s/ James J. Connors, II
|
|
|
James J. Connors, II
|
|
|
|
|
|
*
|
|
|
Michael B. Goldberg
|
|
|
|
|
|
*
|
|
|
David I. Wahrhaftig
|
* The undersigned, by signing his name hereto, executes this
Schedule pursuant to the Power of Attorney executed on behalf of the
above-named entities and individuals and filed herewith.
|
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By:
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/s/ James J.
Connors, II
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James J. Connors, II
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Attorney-in-Fact
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20
INDEX TO EXHIBITS
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Exhibit No.
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Exhibit
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99.1
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Joint Filing Agreement*
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99.2
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Voting Agreement, dated
as of November 11, 2009 by and among IESI-BFC Ltd., Kelso Investment
Associates VI, L.P. and KEP VI, LLC. Incorporated by reference to
Exhibit 99.4 to IESI-BFC Ltd.s Current Report on Form 6-K filed
November 16, 2009.
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99.3
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Power of Attorney.
Incorporated by reference to Exhibit 24.2 to the Reporting Persons
Initial Statement of Beneficial Ownership of Securities on Form 3, filed
February 14, 2008.
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Filed herewith *
21