SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Schedule 13D
Under the Securities Exchange Act of 1934
(Amendment No. 2)*
PSYCHIATRIC SOLUTIONS, INC.
(Name of Issuer)
Common Stock, Par Value $0.01 Per Share
(Title of Class of Securities)
693451106
(Cusip Number)
JOSEPH P. DONLAN
Brown Brothers Harriman & Co.
140 Broadway
New York, New York 10005
(212) 493-7882
(Name, Address and Telephone Number of Person
Authorized to Receive Notices and Communications)
May 16, 2003
(Date of Event which Requires Filing of this Statement)
If the filing person has previously filed a statement on Schedule 13G to report
the acquisition which is the subject of this Schedule 13D, and is filing this
schedule because of Rule 13d-1(b)(3) or (4), check the following box [_].
*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
disclosures provided in a prior cover page.
The information required on 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).
2
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1 NAME OF REPORTING PERSON: The 1818 Mezzanine Fund II, L.P.
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2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP: (a) [_]
(b) [X]
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3 SEC USE ONLY
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4 SOURCE OF FUNDS: OO
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5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO
ITEMS 2(d) or 2(e):
[_]
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6 CITIZENSHIP OR PLACE OF ORGANIZATION: Delaware
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7 SOLE VOTING POWER: 0
NUMBER OF
SHARES ------------------------------------------------
BENEFICIALLY 8 SHARED VOTING POWER: 462,948*
OWNED
BY ------------------------------------------------
EACH 9 SOLE DISPOSITIVE POWER: 0
REPORTING
PERSON ------------------------------------------------
WITH 10 SHARED DISPOSITIVE POWER: 462,948*
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11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON: 462,948*
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12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES:
[X]
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13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11): 5.64%*
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14 TYPE OF REPORTING PERSON: PN
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* See Item 5 herein.
3
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1 NAME OF REPORTING PERSON: Brown Brothers Harriman & Co.
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2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP: (a) [_]
(b) [X]
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3 SEC USE ONLY
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4 SOURCE OF FUNDS: OO
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5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO
ITEMS 2(d) or 2(e):
[_]
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6 CITIZENSHIP OR PLACE OF ORGANIZATION: New York
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7 SOLE VOTING POWER: 0
NUMBER OF
SHARES ------------------------------------------------
BENEFICIALLY 8 SHARED VOTING POWER: 462,948*
OWNED
BY ------------------------------------------------
EACH 9 SOLE DISPOSITIVE POWER: 0
REPORTING
PERSON ------------------------------------------------
WITH 10 SHARED DISPOSITIVE POWER: 462,948*
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11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON: 462,948*
--------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES:
[X]
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13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11): 5.64%*
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14 TYPE OF REPORTING PERSON: PN
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* See Item 5 herein.
4
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1 NAME OF REPORTING PERSON: T. Michael Long
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2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP: (a) [_]
(b) [X]
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3 SEC USE ONLY
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4 SOURCE OF FUNDS: OO
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5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO
ITEMS 2(d) or 2(e):
[_]
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6 CITIZENSHIP OR PLACE OF ORGANIZATION: United States of America
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7 SOLE VOTING POWER: 0
NUMBER OF
SHARES ------------------------------------------------
BENEFICIALLY 8 SHARED VOTING POWER: 462,948*
OWNED
BY ------------------------------------------------
EACH 9 SOLE DISPOSITIVE POWER: 0
REPORTING
PERSON ------------------------------------------------
WITH 10 SHARED DISPOSITIVE POWER: 462,948*
--------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON: 462,948*
--------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES:
[X]
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13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11): 5.64%*
--------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON: IN
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* See Item 5 herein.
5
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1 NAME OF REPORTING PERSON: Lawrence C. Tucker
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2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP: (a) [_]
(b) [X]
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3 SEC USE ONLY
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4 SOURCE OF FUNDS: OO
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5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO
ITEMS 2(d) or 2(e):
[_]
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6 CITIZENSHIP OR PLACE OF ORGANIZATION: United States of America
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7 SOLE VOTING POWER: 0
NUMBER OF
SHARES ------------------------------------------------
BENEFICIALLY 8 SHARED VOTING POWER: 462,948*
OWNED
BY ------------------------------------------------
EACH 9 SOLE DISPOSITIVE POWER: 0
REPORTING
PERSON ------------------------------------------------
WITH 10 SHARED DISPOSITIVE POWER: 462,948*
--------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON: 462,948*
--------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES:
[X]
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13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11): 5.64%*
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14 TYPE OF REPORTING PERSON: IN
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* See Item 5 herein.
6
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1 NAME OF REPORTING PERSON: Robert R. Gould
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2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP: (a) [_]
(b) [X]
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3 SEC USE ONLY
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4 SOURCE OF FUNDS: OO
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5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO
ITEMS 2(d) or 2(e):
[_]
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6 CITIZENSHIP OR PLACE OF ORGANIZATION: United States of America
--------------------------------------------------------------------------------
7 SOLE VOTING POWER: 0
NUMBER OF
SHARES ------------------------------------------------
BENEFICIALLY 8 SHARED VOTING POWER: 462,948*
OWNED
BY ------------------------------------------------
EACH 9 SOLE DISPOSITIVE POWER: 0
REPORTING
PERSON ------------------------------------------------
WITH 10 SHARED DISPOSITIVE POWER: 462,948*
--------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON: 462,948*
--------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES:
[X]
--------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11): 5.64%*
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14 TYPE OF REPORTING PERSON: IN
--------------------------------------------------------------------------------
* See Item 5 herein.
7
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1 NAME OF REPORTING PERSON: Joseph P. Donlan
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2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP: (a) [_]
(b) [X]
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3 SEC USE ONLY
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4 SOURCE OF FUNDS: OO
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5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO
ITEMS 2(d) or 2(e):
[_]
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6 CITIZENSHIP OR PLACE OF ORGANIZATION: United States of America
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7 SOLE VOTING POWER: 4,000*
NUMBER OF
SHARES ------------------------------------------------
BENEFICIALLY 8 SHARED VOTING POWER: 462,948*
OWNED
BY ------------------------------------------------
EACH 9 SOLE DISPOSITIVE POWER: 4,000*
REPORTING
PERSON ------------------------------------------------
WITH 10 SHARED DISPOSITIVE POWER: 462,948*
--------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON: 466,948*
--------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES:
[X]
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13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11): 5.69%*
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14 TYPE OF REPORTING PERSON: IN
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* See Item 5 herein.
8
This Amendment No. 2 ("Amendment No. 2") to Statement on Schedule 13D
relates to the beneficial ownership of common stock, par value $0.01 per share
(the "Common Stock"), of Psychiatric Solutions, Inc. (f/k/a PMR Corporation), a
Delaware corporation ("PSI" or the "Company"). This Amendment No. 2 is being
filed on behalf of the Reporting Persons, as defined in the Schedule 13D filed
by the Reporting Persons on August 15, 2002 (the "Original 13D"), and further
amends and supplements the amended Schedule 13D filed by the Reporting Persons
on April 1, 2003 (the "Amended 13D"). Unless otherwise defined herein, all
capitalized terms used herein shall have the respective meanings given to such
terms in each of the Original 13D and the Amended 13D.
ITEM 1. SECURITY AND ISSUER.
No material change.
ITEM 2. IDENTITY AND BACKGROUND.
No material change.
ITEM 3. SOURCE AND AMOUNT OF FUNDS OR OTHER CONSIDERATION.
No material change.
ITEM 4. PURPOSE OF TRANSACTION.
See Item 6. Contracts, Arrangements, Understandings or Relationships
with Respect to Securities of the Issuer.
ITEM 5. INTEREST IN SECURITIES OF THE ISSUER.
Item 5 is hereby amended and restated in its entirety as follows:
(a)-(c). All ownership percentages set forth herein assume that the
Company has 7,738,641 shares of Common Stock outstanding as of March 1, 2003, as
set forth in the Company's Annual Report on Form 10-K for the year ended
December 31, 2002.
As set forth above, the Fund, through its cashless exercise of the
Warrants upon the closing of the Warrant Exercise Letter Agreement (as defined
below), will acquire 372,039 shares of Common Stock of the Company. Accordingly,
as of May 16, 2003, assuming the conversion of the shares of Series A Preferred
Stock purchased by the Fund at the First Funding into shares of Common Stock as
of such date, the Fund may be deemed to own 462,948 shares of Common Stock (or
an aggregate of 7,425,347 shares of Common Stock, which includes an aggregate of
6,962,399 shares of Common Stock beneficially owned by the other stockholders of
PSI party to the Voting Agreement). Based on calculations made in accordance
with Rule 13d-3(d) promulgated under the Securities Exchange Act of 1934, this
represents 5.64% of the outstanding shares of Common Stock (or 69.51% of the
outstanding shares of Common Stock when aggregated with the shares beneficially
owned by the other stockholders of PSI party to the Voting Agreement).
By virtue of BBH&Co.'s relationship with the Fund, BBH&Co. may be
deemed to beneficially own 462,948 shares of Common Stock (or an aggregate of
7,425,347 shares of Common Stock, which includes an aggregate of 6,962,399
shares of Common Stock
9
beneficially owned by the other stockholders of PSI party to the Voting
Agreement). Based on calculations made in accordance with Rule 13d-3(d)
promulgated under the Securities Exchange Act of 1934, this represents
approximately 5.64% of the outstanding shares of Common Stock (or 69.51% of the
outstanding shares of Common Stock when aggregated with the shares beneficially
owned by the other stockholders of PSI party to the Voting Agreement).
By virtue of designating Long, Tucker, Gould and Donlan, or any of
them, as the sole and exclusive persons at BBH&Co. having voting power
(including the power to vote or to direct the voting) and investment power
(including the power to dispose or to direct the disposition) with respect to
the securities of the Company, Long Tucker and Gould may be deemed to
beneficially own 462,948 shares of Common Stock (or an aggregate of 7,425,347
shares of Common Stock, which includes an aggregate of 6,962,399 shares of
Common Stock beneficially owned by the other stockholders of PSI party to the
Voting Agreement). Based on calculations made in accordance with Rule 13d-3(d)
promulgated under the Securities Exchange Act of 1934, this represents
approximately 5.64% of the outstanding shares of Common Stock (or 69.51% of the
outstanding shares of Common Stock when aggregated with the shares beneficially
owned by the other stockholders of PSI party to the Voting Agreement).
Donlan, by virtue of the foregoing and his beneficial ownership of
options to purchase an additional 4,000 shares of Common Stock, may be deemed to
beneficially own 466,948 shares of Common Stock (or an aggregate of 7,429,347
shares of Common Stock, which includes an aggregate of 6,962,399 shares of
Common Stock beneficially owned by the stockholders of PSI party to the Voting
Agreement). Based on calculations made in accordance with Rule 13d-3(d)
promulgated under the Securities Exchange Act of 1934, this represents
approximately 5.69% of the outstanding shares of Common Stock (or 69.52% of the
outstanding shares of Common Stock when aggregated with the shares beneficially
owned by the stockholders of PSI party to the Voting Agreement).
Except as set forth herein, no Reporting Person nor, to the best
knowledge of each Reporting Person, any person identified on Schedule I to the
Original 13D, beneficially owns any shares of Common Stock or has effected any
transaction in shares of Common Stock during the preceding 60 days.
Paragraphs (d) and (e) of Item 5 of this Statement are not applicable
to this filing.
ITEM 6. CONTRACTS, ARRANGEMENTS, UNDERSTANDINGS OR RELATIONSHIPS WITH RESPECT
TO SECURITIES OF THE ISSUER.
Item 6 is hereby amended and supplemented by the addition of the
following:
WARRANT EXERCISE AGREEMENT. Pursuant to a letter agreement, dated as of
April 1, 2003, by and among the Fund, PSH and PSI (the "Warrant Exercise Letter
Agreement"), the Fund has agreed to exercise for 372,039 shares of Common Stock
of the Company, through a cashless exercise, immediately upon the closing of the
Warrant Exercise Letter Agreement on May 16, 2003, the Warrants it originally
received from PSH pursuant to the Securities Purchase Agreement, dated as of
June 28, 2002, by and between PSH and the Fund, as amended by the Waiver and
Amendment, dated as of January 6, 2003, and the Second Waiver and Amendment,
dated as of April 1, 2003 (the "Securities Purchase Agreement"),
10
which became Warrants to purchase Common Stock of the Company pursuant to the
Merger Agreement. The Warrant Exercise Letter Agreement also provides that the
Fund shall immediately exercise upon the issuance thereof any Additional
Warrants issued to the Fund by the Company pursuant to Securities Purchase
Agreement and the Letter Agreement (as defined in the Original 13D).
In order that the Fund may retain the benefits of the "anti-dilution"
adjustments and certain other rights relating to the Warrants and any Additional
Warrants, the Warrant Exercise Letter Agreement further provides that the Fund
shall be entitled, among other things and subject to terms of the Warrant
Exercise Letter Agreement, to purchase from the Company, at a price per share
equal to the par value of the Common Stock, the additional number of shares of
Common Stock that would have been issuable as a result of an "anti-dilution"
adjustment to the number of shares of Common Stock underlying the Warrants or
any Additional Warrants (assuming such Warrants and Additional Warrants had not
yet been exercised).
In addition, pursuant to the Warrant Exercise Letter Agreement, the
Fund agreed, as of the execution of the Warrant Exercise Letter Agreement, not
to exercise its redemption right under the Securities Purchase Agreement solely
with respect to the Warrants. However, this agreement does not restrict or
prohibit the Fund from exercising its redemption right under any other
circumstances, including, without limitation, with respect to the shares of
Common Stock issued upon exercise of the Warrants and any Additional Warrants.
Any reference to, and the description of the Warrant Exercise Letter
Agreement is qualified in its entirety by reference to the copy of such
agreement which is included as an exhibit to this Schedule 13D and which is
incorporated by reference in this Item 6 in its entirety where such reference
and description appears.
Except for the agreement described above in this Amendment No. 2, which
is hereby incorporated herein by reference, to the best of the knowledge of the
Reporting Persons, there exist no contracts, arrangements, understandings or
relationships (legal or otherwise) among the persons named in Item 2 and between
such persons and any person with respect to any securities of the Company,
including, but not limited to, transfer or voting of any securities of the
Company, finder's fees, joint ventures, loan or option arrangements, puts or
calls, guarantees of profits, division of profits or loss, or the giving or
withholding of proxies.
ITEM 7. MATERIAL TO BE FILED AS EXHIBITS.
EXHIBIT DESCRIPTION
Exhibit 1 Warrant Exercise Agreement, dated as of April 1, 2003, by and
among PSH, PSI and the Fund.
Exhibit 2 Joint Filing Agreement, dated May 16, 2003, among the
Reporting Persons.
11
SIGNATURE
After reasonable inquiry and to the best of its knowledge and belief,
each of the undersigned certifies that the information set forth in this
statement is true, complete and correct.
Dated: May 20, 2003
THE 1818 MEZZANINE FUND II, L.P.
By: Brown Brothers Harriman & Co.,
General Partner
By: /s/ Lawrence C. Tucker
---------------------------------------
Name: Lawrence C. Tucker
Title: Partner
BROWN BROTHERS HARRIMAN & CO.
By: /s/ Lawrence C. Tucker
---------------------------------------
Name: Lawrence C. Tucker
Title: Partner
/s/ T. Michael Long
--------------------------------------------
T. Michael Long
/s/ Lawrence C. Tucker
--------------------------------------------
Lawrence C. Tucker
/s/ Robert R. Gould
--------------------------------------------
Robert R. Gould
/s/ Joseph P. Donlan
--------------------------------------------
Joseph P. Donlan
12
EXHIBIT INDEX
EXHIBIT DESCRIPTION
Exhibit 1 Warrant Exercise Agreement, dated as of April 1, 2003, by and
among PSH, PSI and the Fund.
Exhibit 2 Joint Filing Agreement, dated May 16, 2003, among the
Reporting Persons.