SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
SCHEDULE 13G
(Rule 13d-102)
INFORMATION TO BE INCLUDED IN STATEMENTS FILED PURSUANT
TO RULES 13d-1(b), (c), AND (d) AND AMENDMENTS THERETO FILED
PURSUANT TO RULE 13d-2(b)
(Amendment No. 1)(1)
HealthStream, Inc.
- --------------------------------------------------------------------------------
(Name of Issuer)
Common Stock, no Par Value per Share
- --------------------------------------------------------------------------------
(Title of Class of Securities)
42222N103
- --------------------------------------------------------------------------------
(CUSIP Number)
April 11, 2000
- --------------------------------------------------------------------------------
(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)
[ ] Rule 13d-1(c)
[X] Rule 13d-1(d)
- ---------------
(1) 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 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).
- ------------------- ------------------
CUSIP No. 42222N103 13G Page 2 of 15 Pages
- ------------------- ------------------
- --------------------------------------------------------------------------------
1. NAMES OF REPORTING PERSONS
I.R.S. IDENTIFICATION NO. OF ABOVE PERSONS (ENTITIES ONLY)
MORGAN STANLEY
- --------------------------------------------------------------------------------
2. CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) [ ]
(b) [ ]
- --------------------------------------------------------------------------------
3. SEC USE ONLY
- --------------------------------------------------------------------------------
4. CITIZENSHIP OR PLACE OF ORGANIZATION
Delaware
- --------------------------------------------------------------------------------
5. SOLE VOTING POWER -0-
---------------------------------------------
NUMBER OF SHARES 6. SHARED VOTING POWER 1,173,740
BENEFICIALLY OWNED
BY EACH REPORTING ---------------------------------------------
PERSON WITH 7. SOLE DISPOSITIVE POWER -0-
---------------------------------------------
8. SHARED DISPOSITIVE POWER 1,173,740
- --------------------------------------------------------------------------------
9. AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
1,173,740
- --------------------------------------------------------------------------------
10. CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (9) EXCLUDES
CERTAIN SHARES*
- --------------------------------------------------------------------------------
11. PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW 9
5.8%
- --------------------------------------------------------------------------------
12. TYPE OF REPORTING PERSON*
CO
- --------------------------------------------------------------------------------
*SEE INSTRUCTIONS BEFORE FILLING OUT!
- ------------------- ------------------
CUSIP No. 42222N103 13G Page 3 of 15 Pages
- ------------------- ------------------
- --------------------------------------------------------------------------------
1. NAMES OF REPORTING PERSONS
I.R.S. IDENTIFICATION NO. OF ABOVE PERSONS (ENTITIES ONLY)
MORGAN STANLEY VENTURE CAPITAL III, INC.
-------------------------------------------------------------------------------
2. CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) [ ]
(b) [ ]
-------------------------------------------------------------------------------
3. SEC USE ONLY
- --------------------------------------------------------------------------------
4. CITIZENSHIP OR PLACE OF ORGANIZATION
Delaware
- --------------------------------------------------------------------------------
5. SOLE VOTING POWER -0-
---------------------------------------------
NUMBER OF SHARES 6. SHARED VOTING POWER 1,173,740
BENEFICIALLY OWNED
BY EACH REPORTING ---------------------------------------------
PERSON WITH 7. SOLE DISPOSITIVE POWER -0-
---------------------------------------------
8. SHARED DISPOSITIVE POWER 1,173,740
- --------------------------------------------------------------------------------
9. AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
1,173,740
- --------------------------------------------------------------------------------
10. CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (9) EXCLUDES
CERTAIN SHARES* [ ]
- --------------------------------------------------------------------------------
11. PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW 9
5.8%
- --------------------------------------------------------------------------------
12. TYPE OF REPORTING PERSON*
CO, IA
- --------------------------------------------------------------------------------
*SEE INSTRUCTIONS BEFORE FILLING OUT!
- ------------------- ------------------
CUSIP No. 42222N103 13G Page 4 of 15 Pages
- ------------------- ------------------
- --------------------------------------------------------------------------------
1. NAMES OF REPORTING PERSONS
I.R.S. IDENTIFICATION NO. OF ABOVE PERSONS (ENTITIES ONLY)
MORGAN STANLEY VENTURE PARTNERS III, L.L.C.
- --------------------------------------------------------------------------------
2. CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) [ ]
(b) [ ]
- --------------------------------------------------------------------------------
3. SEC USE ONLY
- --------------------------------------------------------------------------------
4. CITIZENSHIP OR PLACE OF ORGANIZATION
Delaware
- --------------------------------------------------------------------------------
5. SOLE VOTING POWER -0-
---------------------------------------------
NUMBER OF SHARES 6. SHARED VOTING POWER 1,173,740
BENEFICIALLY OWNED
BY EACH REPORTING ---------------------------------------------
PERSON WITH 7. SOLE DISPOSITIVE POWER -0-
---------------------------------------------
8. SHARED DISPOSITIVE POWER 1,173,740
- --------------------------------------------------------------------------------
9. AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
1,173,740
- --------------------------------------------------------------------------------
10. CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (9) EXCLUDES
CERTAIN SHARES* [ ]
- --------------------------------------------------------------------------------
11. PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW 9
5.8%
- --------------------------------------------------------------------------------
12. TYPE OF REPORTING PERSON*
OO, IA
- --------------------------------------------------------------------------------
*SEE INSTRUCTIONS BEFORE FILLING OUT!
- ------------------- ------------------
CUSIP No. 42222N103 13G Page 5 of 15 Pages
- ------------------- ------------------
- --------------------------------------------------------------------------------
1. NAMES OF REPORTING PERSONS
I.R.S. IDENTIFICATION NO. OF ABOVE PERSONS (ENTITIES ONLY)
MORGAN STANLEY VENTURE PARTNERS III, L.P.
- --------------------------------------------------------------------------------
2. CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) [ ]
(b) [ ]
- --------------------------------------------------------------------------------
3. SEC USE ONLY
- --------------------------------------------------------------------------------
4. CITIZENSHIP OR PLACE OF ORGANIZATION
Delaware
- --------------------------------------------------------------------------------
5. SOLE VOTING POWER -0-
---------------------------------------------
NUMBER OF SHARES 6. SHARED VOTING POWER 999,284
BENEFICIALLY OWNED
BY EACH REPORTING ---------------------------------------------
PERSON WITH 7. SOLE DISPOSITIVE POWER -0-
---------------------------------------------
8. SHARED DISPOSITIVE POWER 999,284
- --------------------------------------------------------------------------------
9. AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
999,284
- --------------------------------------------------------------------------------
10. CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (9) EXCLUDES
CERTAIN SHARES* [ ]
- --------------------------------------------------------------------------------
11. PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW 9
4.9%
- --------------------------------------------------------------------------------
12. TYPE OF REPORTING PERSON*
PN
- --------------------------------------------------------------------------------
*SEE INSTRUCTIONS BEFORE FILLING OUT!
- ------------------- ------------------
CUSIP No. 42222N103 13G Page 6 of 15 Pages
- ------------------- ------------------
- --------------------------------------------------------------------------------
1. NAMES OF REPORTING PERSONS
I.R.S. IDENTIFICATION NO. OF ABOVE PERSONS (ENTITIES ONLY)
MORGAN STANLEY VENTURE INVESTORS III, L.P.
- --------------------------------------------------------------------------------
2. CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) [ ]
(b) [ ]
- --------------------------------------------------------------------------------
3. SEC USE ONLY
- --------------------------------------------------------------------------------
4. CITIZENSHIP OR PLACE OF ORGANIZATION
Delaware
- --------------------------------------------------------------------------------
5. SOLE VOTING POWER -0-
---------------------------------------------
NUMBER OF SHARES 6. SHARED VOTING POWER 95,947
BENEFICIALLY OWNED
BY EACH REPORTING ---------------------------------------------
PERSON WITH 7. SOLE DISPOSITIVE POWER -0-
---------------------------------------------
8. SHARED DISPOSITIVE POWER 95,947
- --------------------------------------------------------------------------------
9. AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
95,947
- --------------------------------------------------------------------------------
10. CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (9) EXCLUDES
CERTAIN SHARES* [ ]
- --------------------------------------------------------------------------------
11. PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW 9
0.5%
- --------------------------------------------------------------------------------
12. TYPE OF REPORTING PERSON*
PN
- --------------------------------------------------------------------------------
*SEE INSTRUCTIONS BEFORE FILLING OUT!
- ------------------- ------------------
CUSIP No. 42222N103 13G Page 7 of 15 Pages
- ------------------- ------------------
- --------------------------------------------------------------------------------
1. NAMES OF REPORTING PERSONS
I.R.S. IDENTIFICATION NO. OF ABOVE PERSONS (ENTITIES ONLY)
THE MORGAN STANLEY VENTURE PARTNERS ENTREPRENEUR FUND, L.P.
- --------------------------------------------------------------------------------
2. CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) [ ]
(b) [ ]
- --------------------------------------------------------------------------------
3. SEC USE ONLY
- --------------------------------------------------------------------------------
4. CITIZENSHIP OR PLACE OF ORGANIZATION
Delaware
- --------------------------------------------------------------------------------
5. SOLE VOTING POWER -0-
---------------------------------------------
NUMBER OF SHARES 6. SHARED VOTING POWER 43,709
BENEFICIALLY OWNED
BY EACH REPORTING ---------------------------------------------
PERSON WITH 7. SOLE DISPOSITIVE POWER -0-
---------------------------------------------
8. SHARED DISPOSITIVE POWER 43,709
- --------------------------------------------------------------------------------
9. AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
43,709
- --------------------------------------------------------------------------------
10. CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (9) EXCLUDES
CERTAIN SHARES* [ ]
- --------------------------------------------------------------------------------
11. PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW 9
0.2%
- --------------------------------------------------------------------------------
12. TYPE OF REPORTING PERSON*
PN
- --------------------------------------------------------------------------------
*SEE INSTRUCTIONS BEFORE FILLING OUT!
Item 1(a). Name of Issuer:
HealthStream, Inc.
Item 1(b). Address of Issuer's Principal Executive Offices:
209 10th Avenue South, Suite 450, Nashville, Tennessee 37203
Item 2(a). Name of Person Filing:
This statement is filed jointly on behalf of the persons identified below.
In accordance with Rule 13d-1(k)(1) under the Securities Exchange Act of 1934,
as amended (the "Exchange Act"), each person filing this statement acknowledges
that it is responsible for the completeness and accuracy of the information
concerning that person but is not responsible for the completeness or accuracy
of the information concerning the other persons making the filing, unless such
person knows or has reason to believe that such information is inaccurate.
Morgan Stanley ("MS")
Morgan Stanley Venture Capital III, Inc. ("MSVC III, Inc.")
Morgan Stanley Venture Partners III, L.L.C. ("MSVP III, L.L.C.")
Morgan Stanley Venture Partners III, L.P. ("MSVP III, L.P.")
Morgan Stanley Venture Investors III, L.P. ("MSVI III, L.P.")
The Morgan Stanley Venture Partners Entrepreneur Fund, L.P. (the
"Entrepreneur Fund")
Item 2(b). Address of Principal Business Office or, if None, Residence:
The address of the principal business office of MS, MSVC III, Inc., MSVP
III, L.L.C., MSVP III, L.P., MSVI III, L.P. and the Entrepreneur Fund is:
1585 Broadway
New York, New York 10036
Item 2(c). Citizenship:
The citizenship of MS, MSVC III, Inc., MSVP III, L.L.C., MSVP III, L.P.,
MSVI III, L.P. and the Entrepreneur Fund is Delaware.
Item 2(d). Title of Class of Securities:
This statement relates to the Company's Common Stock, no par value per
share (the "Shares").
Item 2(e). CUSIP Number:
42222N103
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 Exchange
Act;
Page 8 of 15
(b) [ ] Bank as defined in Section 3(a)(6) of the Exchange Act;
(c) [ ] Insurance company as defined in Section 3(a)(19) of the
Exchange Act;
(d) [ ] Investment company registered under Section 8 of the
Investment Company Act;
(e) [ ] An investment adviser in accordance with Rule
13d-1(b)(1)(ii)(E);
(f) [ ] An employee benefit plan or endowment fund in accordance with
Rule 13d-1(b)(1)(ii)(F);
(g) [ ] A parent holding company or control person in accordance with
Rule 13d-1(b)(1)(ii)(G);
(h) [ ] A savings association as defined in Section 3(b) of the
Federal Deposit Insurance Act;
(i) [ ] A church plan that is excluded from the definition of an
investment company under Section 3(c)(14) of the Investment
Company Act;
(j) [ ] Group, in accordance with Rule 13d-1(b)(1)(ii)(J).
Item 4. Ownership.
The filing of this statement should not be construed as an admission by any
person that such person is, for purposes of Section 13(d) or 13(g) of the
Exchange Act, the beneficial owner of any securities covered by this statement,
other than the securities set forth opposite such person's name in the table in
Item 4(c) below.
(a) Amount beneficially owned:
As of December 31, 2002: (i) MSVP III, L.P. owned directly 999,284 Shares;
(ii) MSVI III, L.P. owned directly 95,947 Shares; and (iii) the Entrepreneur
Fund owned directly 43,709 Shares; and (iv) MSVP III, L.L.C. owned directly
options to acquire 34,800 Shares.
MSVP III, L.L.C. is the general partner of MSVP III, L.P., MSVI III, L.P.
and the Entrepreneur Fund (collectively, the "Funds"), and, as such, has the
power to vote or direct the vote and to dispose or direct the disposition of all
of the Shares held by the Funds. MSVC III, Inc. is the institutional managing
member of MSVP III, L.L.C., and, as such, shares, together with the remaining
managing members, the power to direct the actions of MSVP III, L.L.C. MSDW, as
the sole shareholder of MSVC III, Inc., controls the actions of MSVC III, Inc.
Therefore, MSVP III, L.L.C., MSVC III, Inc. and MS each may be deemed to have
beneficial ownership of the 1,138,940 Shares held collectively by the Funds and
the options to acquire 34,800 Shares.
MS is filing solely in its capacity as parent company of, and indirect
beneficial owner of securities held by, one of its business units.
Page 9 of 15
(b) Percent of class: (1)
Morgan Stanley 5.8% of the Common Stock
Morgan Stanley Venture Capital III, Inc. 5.8% of the Common Stock
Morgan Stanley Venture Partners III, L.L.C. 5.8% of the Common Stock
Morgan Stanley Venture Partners III, L.P. 4.9% of the Common Stock
Morgan Stanley Venture Investors III, L.P. 0.5% of the Common Stock
The Morgan Stanley Venture Partners 0.2% of the Common Stock
Entrepreneur Fund, L.P.
- ---------------
(1) Based on the 20,322,687 Shares reported to be outstanding as of November
11, 2002 on the Form 10-Q filed with the SEC, for the quarter ended
September 30, 2002.
(c) Number of shares as to which such person has:
(iii) (iv)
(i) (ii) Sole power to Shared power to
Sole power to vote Shared power to vote dispose or to direct dispose or to direct
or to direct the vote or to direct the vote the disposition of the disposition of
--------------------- --------------------- -------------------- --------------------
Morgan Stanley - 0 - 1,173,740 - 0 - 1,173,740
Morgan Stanley Venture - 0 - 1,173,740 - 0 - 1,173,740
Capital III, Inc.
Morgan Stanley Venture - 0 - 1,173,740 - 0 - 1,173,740
Partners III, L.L.C.
Morgan Stanley Venture - 0 - 999,284 - 0 - 999,284
Partners III, L.P.
Morgan Stanley Venture - 0 - 95,947 - 0 - 95,947
Investors III, L.P.
The Morgan Stanley - 0 - 43,709 - 0 - 43,709
Venture Partners
Entrepreneur Fund, L.P.
Item 5. Ownership of Five Percent or Less of a Class.
If this statement is being filed to report the fact that as of the date
hereof the reporting person has ceased to be the beneficial owner of more than
five percent of the class of securities, check the following. [ ]
Item 6. Ownership of More than Five Percent on Behalf of Another Person.
Not applicable.
Page 10 of 15
Item 7. Identification and Classification of the Subsidiary Which Acquired
the Security Being Reported on by the Parent Holding Company or
Control Person.
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. Certifications.
Not applicable.
Page 11 of 15
SIGNATURE
After reasonable inquiry and to the best of the knowledge and belief of
each of the undersigned, each of the undersigned certifies that the information
set forth in this statement is true, complete and correct.
Date: February 13, 2003
MORGAN STANLEY
By: /s/ Dennine Bullard
--------------------------------------------
Name: Dennine Bullard
Title: Authorized Signatory
MORGAN STANLEY VENTURE CAPITAL III, INC.
By: /s/ Debra Abramovitz
--------------------------------------------
Name: Debra Abramovitz
Title: Executive Director
MORGAN STANLEY VENTURE PARTNERS III, L.L.C.
By: Morgan Stanley Venture Capital III, Inc.,
as Institutional Managing Member
By: /s/ Debra Abramovitz
-------------------------------------------
Name: Debra Abramovitz
Title: Executive Director
MORGAN STANLEY VENTURE PARTNERS III, L.P.
By: Morgan Stanley Venture Partners III, L.L.C.,
as General Partner
By: Morgan Stanley Venture Capital III, Inc.,
as Institutional Managing Member of
the General Partner
By: /s/ Debra Abramovitz
--------------------------------------------
Name: Debra Abramovitz
Title: Executive Director
MORGAN STANLEY VENTURE INVESTORS III, L.P.
By: Morgan Stanley Venture Partners III, L.L.C.,
as General Partner
By: Morgan Stanley Venture Capital III, Inc.,
as Institutional Managing Member of
the General Partner
By: /s/ Debra Abramovitz
-------------------------------------------
Name: Debra Abramovitz
Title: Executive Director
Page 12 of 15
THE MORGAN STANLEY VENTURE PARTNERS
ENTREPRENEUR FUND, L.P.
By: Morgan Stanley Venture Partners III, L.L.C.,
as General Partner
By: Morgan Stanley Venture Capital III, Inc.,
as Institutional Managing Member of
the General Partner
By: /s/ Debra Abramovitz
--------------------------------------------
Name: Debra Abramovitz
Title: Executive Director
Page 13 of 15
EXHIBIT 1
JOINT FILING AGREEMENT
In accordance with Rule 13d-1(k) under the Securities Exchange Act of 1934,
as amended, each of the persons named below agrees to the joint filing of a
Statement on Schedule 13G (including amendments thereto) with respect to the
common stock, no par value per share, of HealthStream, Inc., a Tennessee
corporation, and further agrees that this Joint Filing Agreement be included as
an exhibit to such filings provided that, as contemplated by Section
13d-1(k)(l)(ii), no person shall be responsible for the completeness or accuracy
of the information concerning the other persons making the filing, unless such
person knows or has reason to believe that such information is inaccurate.
In evidence thereof, the undersigned, being duly authorized, hereby execute
this Agreement this February 13, 2003.
This Schedule may be executed in two or more counterparts, any one of which
need not contain the signature of more than one party, but all such parties
taken together will constitute part of this Schedule.
MORGAN STANLEY
By: /s/ Dennine Bullard
---------------------------------------------
Name: Dennine Bullard
Title: Authorized Signatory
MORGAN STANLEY VENTURE CAPITAL III, INC.
By: /s/ Debra Abramovitz
---------------------------------------------
Name: Debra Abramovitz
Title: Executive Director
MORGAN STANLEY VENTURE PARTNERS III, L.L.C.
By: Morgan Stanley Venture Capital III, Inc.,
as Institutional Managing Member
By: /s/ Debra Abramovitz
---------------------------------------------
Name: Debra Abramovitz
Title: Executive Director
MORGAN STANLEY VENTURE PARTNERS III, L.P.
By: Morgan Stanley Venture Partners III, L.L.C.,
as General Partner
By: Morgan Stanley Venture Capital III, Inc.,
as Institutional Managing Member of the
General Partner
By: /s/ Debra Abramovitz
---------------------------------------------
Name: Debra Abramovitz
Title: Executive Director
Page 14 of 15
MORGAN STANLEY VENTURE INVESTORS III, L.P.
By: Morgan Stanley Venture Partners III, L.L.C.,
as General Partner
By: Morgan Stanley Venture Capital III, Inc.,
as Institutional Managing Member of the
General Partner
By: /s/ Debra Abramovitz
---------------------------------------------
Name: Debra Abramovitz
Title: Executive Director
THE MORGAN STANLEY VENTURE PARTNERS
ENTREPRENEUR FUND, L.P.
By: Morgan Stanley Venture Partners III, L.L.C.,
as General Partner
By: Morgan Stanley Venture Capital III, Inc.,
as Institutional Managing Member of the
General Partner
By: /s/ Debra Abramovitz
---------------------------------------------
Name: Debra Abramovitz
Title: Executive Director
Page 15 of 15