SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
SCHEDULE 13G
(Rule 13d-102)
INFORMATION TO BE INCLUDED IN STATEMENTS FILED PURSUANT TO RULE 13d-1(b), (c) AND (d) AND AMENDMENTS THERETO FILED PURSUANT TO RULE 13d-2
(Amendment No. ___)*
Lincoln Educational Services Corporation
(Name of Issuer)
Common Stock
(Title of Class of Securities)
533535100
(CUSIP Number)
December 31, 2005
(Date of Event Which Requires Filing of this Statement)
Check the appropriate box to designate the rule pursuant to which this Schedule is filed:
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Rule 13d-1(b) | |
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Rule 13d-1(c) | |
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Rule 13d-1(d) | |
* 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 purposes of Section 18 of the Securities Exchange Act of 1934 (“Act”) or otherwise subject to the liabilities of that section of the Act but shall be subject to all other provisions of the Act (however, see the Notes).
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CUSIP No. 533535100 |
13G |
Page 2 of 11 |
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(1) |
Names of Reporting Person |
I.R.S. Identification Nos. of Above Person (entities only)
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STEVEN W. HART |
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(2) |
Check the Appropriate Box if a Member of a Group (see Instructions) |
(a) |X|
(b) |X| (i)
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(3) |
SEC Use Only |
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(4) |
Citizenship or Place of Organization |
United States of America
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Number of Shares |
(5) |
Sole Voting Power |
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Beneficially Owned |
(6) |
Shared Voting Power |
2,297,669 (i), (ii), (iii), (iv) |
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By Each Reporting |
(7) |
Sole Dispositive Power |
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Person With |
(8) |
Shared Dispositive Power |
2,297,669 (i), (ii), (iii), (iv) | ||||
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(9) |
Aggregate Amount Beneficially Owned by Reporting Person |
2,297,669 (ii), (iii), (iv)
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(10) |
Check if the Aggregate Amount in Row (9) Excludes Certain Shares (see Instructions) |X| |
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(11) |
Percent of Class Represented by Amount in Row (9) |
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9.1% (v) |
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(12) |
Type of Reporting Person (see Instructions) |
IN
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(i) Back to School Acquisition, LLC (“Stonington”), which is the largest stockholder of the issuer, and which is controlled by Stonington Partners, Inc. II, a private equity fund, is party to a Stockholders’ Agreement, dated as of September 15, 1999, with Five Mile River Capital Partners LLC (“FMRCP”) and the issuer (the “FMRCP Stockholders’ Agreement”). The Reporting Person may be deemed the beneficial owner of shares of Common Stock held by FMRCP by virtue of his ownership of membership interests in and/or position as President of Hart Capital LLC (“Hart Capital”), the managing member of FMRCP. Pursuant to the FMRCP Stockholders’ Agreement, Stonington has the power to direct the voting and, under certain circumstances, through the exercise of drag-along rights, the disposition, of all shares of Common Stock held by FMRCP.
(ii) The Reporting Person directly owns 4,069 shares of Common Stock and options to purchase 11,500 shares of Common Stock. The options are exercisable at $1.5482 per share and expire on June 21, 2009. Stonington is party to a Stockholders’ Agreement, dated as of June 22, 2005, with the Reporting Person, the Steven W. Hart 2003 Grantor Retained Annuity Trust (the “2003 Trust”) and the issuer (the “Non-FMRCP Stockholders’ Agreement”). Pursuant to the Non-FMRCP Stockholders’ Agreement, Stonington has the power to direct the voting and, under certain circumstances, through the exercise of drag-along rights, the disposition, of all shares of Common Stock held by the Reporting Person.
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CUSIP No. 533535100 |
13G |
Page 3 of 11 |
(iii) The Reporting Person beneficially owns 55,602 shares of Common Stock held in the 2003 Trust and options to purchase 39,398 shares of Common Stock held in the Steven W. Hart 2005 Grantor Retained Annuity Trust (the “2005 Trust”), as to both of which trusts the Reporting Person serves as co-trustee. The options are exercisable at $1.5482 per share and expire on June 21, 2009. Pursuant to the Non-FMRCP Stockholders’ Agreement, Stonington has the power to direct the voting and, under certain circumstances, through the exercise of drag-along rights, the disposition, of all shares of Common Stock held by the 2003 Trust. Upon exercise of any of the 39,398 options to purchase shares of Common Stock held by the 2005 Trust, the 2005 Trust will be required to enter into a Stockholders’ Agreement with the issuer and Stonington pursuant to which Stonington will have the power to direct the voting and, under certain circumstances, through the exercise of drag-along rights, the disposition, of all shares of Common Stock held by the 2005 Trust.
Does not include 3,000 shares of Common Stock held either directly, or indirectly as sole trustee for the benefit of the Reporting Person’s children, by Mr. Hart’s wife, as to which he disclaims beneficial ownership.
(iv) The amount listed also includes 2,187,100 shares of Common Stock held by FMRCP. The Reporting Person disclaims beneficial ownership of the shares of Common Stock held by FMRCP.
(v) The percentage is based upon the number of shares of Common Stock outstanding at November 9, 2005 (25,154,390) as reported in the issuer’s Form 10-Q for the quarter ended September 30, 2005. The calculation assumes the exercise of all options to purchase shares of Common Stock beneficially owned by the Reporting Person.
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CUSIP No. 533535100 |
13G |
Page 4 of 11 |
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(1) |
Names of Reporting Persons |
I.R.S. Identification Nos. of Above Persons (entities only)
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HART CAPITAL LLC |
EIN: 06-1514456
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(2) |
Check the Appropriate Box if a Member of a Group (see Instructions) |
(a) |X|
(b) |X| (i)
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(3) |
SEC Use Only |
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(4) |
Citizenship or Place of Organization |
Delaware
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Number of Shares |
(5) |
Sole Voting Power |
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Beneficially Owned |
(6) |
Shared Voting Power |
2,187,100 (i), (ii) |
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By Each Reporting |
(7) |
Sole Dispositive Power |
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Person With |
(8) |
Shared Dispositive Power |
2,187,100 (i), (ii) | ||||
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(9) |
Aggregate Amount Beneficially Owned by Each Reporting Person |
2,187,100 (ii)
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(10) |
Check if the Aggregate Amount in Row (9) Excludes Certain Shares (see Instructions) |
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(11) |
Percent of Class Represented by Amount in Row (9) |
8.7% (iii)
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(12) |
Type of Reporting Person (see Instructions) |
CO
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(i) Back to School Acquisition, LLC (“Stonington”), which is the largest stockholder of the issuer, and which is controlled by Stonington Partners, Inc. II, a private equity fund, is party to a Stockholders’ Agreement, dated as of September 15, 1999, with Five Mile River Capital Partners LLC (“FMRCP”) and the issuer (the “FMRCP Stockholders’ Agreement”). The Reporting Person is the managing member of FMRCP. Pursuant to the FMRCP Stockholders’ Agreement, Stonington has the power to direct the voting and, under certain circumstances, through the exercise of drag-along rights, the disposition, of all shares of Common Stock held by FMRCP.
(ii) The amount listed includes shares of Common Stock held directly by FMRCP, of which the Reporting Person may be deemed the beneficial owner by virtue of its position as managing member of FMRCP. These shares are also reported by Mr. Steven W. Hart under shared voting power and shared dispositive power on Page 2 of this Schedule 13G. The Reporting Person disclaims beneficial ownership of these shares of Common Stock.
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CUSIP No. 533535100 |
13G |
Page 5 of 11 |
(iii) The percentage is based upon the number of shares of Common Stock outstanding at November 9, 2005 (25,154,390) as reported in the issuer’s Form 10-Q for the quarter ended September 30, 2005.
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CUSIP No. 533535100 |
13G |
Page 6 of 11 |
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(1) |
Names of Reporting Persons |
I.R.S. Identification Nos. of Above Persons (entities only)
FIVE MILE RIVER CAPITAL PARTNERS LLC
EIN: 06-1556163
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(2) |
Check the Appropriate Box if a Member of a Group (see Instructions) |
(a) |X|
(b) |X| (i)
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(3) |
SEC Use Only |
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(4) |
Citizenship or Place of Organization |
Delaware
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Number of Shares |
(5) |
Sole Voting Power |
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Beneficially Owned |
(6) |
Shared Voting Power |
2,187,100 (i), (ii) |
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By Each Reporting |
(7) |
Sole Dispositive Power |
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Person With |
(8) |
Shared Dispositive Power |
2,187,100 (i), (ii) | ||||
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(9) |
Aggregate Amount Beneficially Owned by Each Reporting Person |
2,187,100 (ii)
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(10) |
Check if the Aggregate Amount in Row (9) Excludes Certain Shares (see Instructions) |
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(11) |
Percent of Class Represented by Amount in Row (9) |
8.7% (iii)
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(12) |
Type of Reporting Person (see Instructions) |
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CO |
________________
(i) Back to School Acquisition, LLC (“Stonington”), which is the largest stockholder of the issuer, and which is controlled by Stonington Partners, Inc. II, a private equity fund, is party to a Stockholders’ Agreement, dated as of September 15, 1999, with Five Mile River Capital Partners LLC (“FMRCP”) and the issuer (the “FMRCP Stockholders’ Agreement”). Pursuant to the FMRCP Stockholders’ Agreement, Stonington has the power to direct the voting and, under certain circumstances, through the exercise of drag-along rights, the disposition, of all shares of Common Stock held by the Reporting Person.
(ii) These shares are also reported by Mr. Steven W. Hart under shared voting power and shared dispositive power on Page 2 of this Schedule 13G and by Hart Capital LLC under shared voting power and shared dispositive power on Page 4 of this Schedule 13G.
(iii) The percentage is based upon the number of shares of Common Stock outstanding at November 9, 2005 (25,154,390) as reported in the issuer’s Form 10-Q for the quarter ended September 30, 2005.
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CUSIP No. 533535100 |
13G |
Page 7 of 11 |
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Item 1(a). |
Name of Issuer: |
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Lincoln Educational Services Corporation |
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Item 1(b). |
Address of Issuer’s Principal Executive Offices: |
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200 Executive Drive, Suite 340, West Orange, New Jersey 07052 |
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Item 2(a). |
Name of Person Filing: |
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Steven W. Hart |
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Item 2(b). |
Address of Principal Business Offices or, if none, Residence: |
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131 Rowayton Avenue | |
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Rowayton, CT 06583 |
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Item 2(c). |
Citizenship: |
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United States of America |
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Item 2(d). |
Title of Class of Securities: |
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Common Stock |
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Item 2(e). |
CUSIP Number: |
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533535100 |
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Item 3. |
If this Statement is Filed Pursuant to Rules 13d-1(b) or 13d-2(b) or (c), | |
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Check Whether the Person is Filing is a: |
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(a) [ |
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Broker or dealer registered under Section 15 of the Exchange |
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Act. |
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(b) [ |
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Bank as defined in Section 3(a) (6) of the Exchange Act. |
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(c) [ |
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Insurance company as defined in Section 3(a) (19) of the |
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Exchange Act. |
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(d) [ |
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Investment company registered under Section 8 of the |
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Investment Company Act. |
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(e) [ |
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An investment adviser in accordance with Rule 13d-1(b) |
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(1) (ii) (E). |
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(f) [ |
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An employee benefit plan or endowment fund in accordance |
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with Rule 13d-1(b) (1) (ii) (F). |
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(g) [ |
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A parent holding company or control person in accordance |
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with Rule 13d-1(b) (1) (ii) (G). |
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(h) [ |
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A savings association as defined in Section 3(b) of the Federal | |||||||||||||
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Deposit Insurance Act. |
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CUSIP No. 533535100 |
13G |
Page 8 of 11 |
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(i) [ |
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A church plan that is excluded from the definition of an |
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investment company under Section 3(c) (14) of the Investment | |||||
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Company Act. |
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(j) [ |
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Group, in accordance with Rule 13d-1(b)(1) (ii) (J). |
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If this statement is filed pursuant to Rule 13d-1(c), check this box [ |
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Item 4. |
Ownership. |
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(a) |
Amount Beneficially Owned: 2,297,669 |
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(b) |
Percent of Class: 9.1% |
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(c) |
Number of shares as to which the person has: | ||
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(i) |
Sole power to vote or to direct the vote: |
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(ii) |
Shared power to vote or to direct the vote: 2,297,669 | |||||
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(iii) |
Sole power to dispose or to direct the disposition |
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of: |
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(iv) |
Shared power to dispose or to direct the disposition |
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of: 2,297,669 |
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Item 5. |
Ownership of Five Percent or Less of a Class |
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Not applicable. |
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Item 6. |
Ownership of More than Five Percent of Behalf of Another Person |
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Not applicable. |
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Item 7. |
Identification and Classification of the Subsidiary Which Acquired the Security Being Reported on by the Parent Holding Company |
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Not applicable. |
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CUSIP No. 533535100 |
13G |
Page 9 of 11 |
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Item 8. |
Identification and Classification of Members of the Group |
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See Exhibit 1 attached hereto. |
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Item 9. |
Notice of Dissolution of Group |
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Not applicable. |
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Item 10. |
Certification |
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Not applicable. |
SIGNATURE
After reasonable inquiry and to the best of my knowledge and belief, the undersigned certifies that the information set forth in this statement is true, complete and correct.
Dated as of February 13, 2006
FIVE MILE RIVER CAPITAL PARTNERS LLC
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By: Hart Capital LLC, managing member |
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By: /s/ Steven W. Hart | |||
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Steven W. Hart |
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President |
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HART CAPITAL LLC |
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By: /s/ Steven W. Hart | |||
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Steven W. Hart |
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President |
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__/s/ Steven W. Hart__________________________ | |
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Steven W. Hart, individually |
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CUSIP No. 533535100 |
13G |
Page 10 of 11 |
Exhibit 1
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Name |
Number of Shares of Common Stock Beneficially Owned |
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Five Mile River Capital Partners LLC 131 Rowayton Avenue Rowayton, CT 06583 |
2,187,100 |
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Hart Capital LLC 131 Rowayton Avenue Rowayton, CT 06583 |
2,187,100 |
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Steven W. Hart c/o Hart Capital LLC 131 Rowayton Avenue Rowayton, CT 06583 |
2,297,669 |
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CUSIP No. 533535100 |
13G |
Page 11 of 11 |
Exhibit 2
JOINT FILING AGREEMENT
Steven W. Hart, Hart Capital LLC, a Delaware limited liability company, and Five Mile River Capital Partners LLC, a Delaware limited liability company, each hereby agree, in accordance with Rule 13d-1(k) under the Securities Exchange Act of 1934, that the Schedule 13G filed herewith, and any amendments thereto, relating to the shares of Common Stock of Lincoln Educational Services Corporation is, and will be, jointly filed on behalf of each such person and further agree that this Joint Filing Agreement be included as an Exhibit to such joint filings. In evidence thereof, the undersigned hereby executes this Agreement as of the date set forth below.
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February 13, 2006 |
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FIVE MILE RIVER CAPITAL PARTNERS LLC | |
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By: Hart Capital LLC, managing member |
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By: /s/ Steven W. Hart | |||
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Steven W. Hart |
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President |
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HART CAPITAL LLC |
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By: /s/ Steven W. Hart | |||
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Steven W. Hart |
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President |
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__/s/ Steven W. Hart__________________________ | |
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Steven W. Hart, individually |
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