Sec Form 3 Filing - iSubscribed Inc. @ INTERSECTIONS INC - 2018-10-31

Insider filing report for Changes in Beneficial Ownership
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FORM 3
Check this box if no longer subject to Section 16. Form 4 or Form 5 obligations may continue. See Instruction 1(b).
UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
STATEMENT OF CHANGES IN BENEFICIAL OWNERSHIP
Filed pursuant to Section 16(a) of the Securities Exchange Act of 1934, Section 17(a) of the Public Utility Holding Company Act of 1935 or Section 30(h) of the Investment Company Act of 1940
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1. Name and Address of Reporting Person
iSubscribed Inc.
2. Issuer Name and Ticker or Trading Symbol
INTERSECTIONS INC [ INTX]
5. Relationship of Reporting Person(s) to Issuer
(Check all applicable)
_____ Director X __ 10% Owner
_____ Officer (give title below) _____ Other (specify below)
(Last) (First) (Middle)
C/O ISUBSCRIBED INC., 15 NETWORK DRIVE
3. Date of Earliest Transaction (MM/DD/YY)
10/31/2018
(Street)
BURLINGTON, MA01803
4. If Amendment, Date Original Filed (MM/DD/YY)
6. Individual or Joint/Group Filing (Check Applicable Line)
_____ Form filed by One Reporting Person
__ X __ Form filed by More than One Reporting Person
(City) (State) (Zip)
Table I - Non-Derivative Securities Acquired, Disposed of, or Beneficially Owned
1.Title of Security
(Instr. 3)
2. Transaction Date (MM/DD/YY) 2A. Deemed Execution Date, if any (MM/DD/YY) 3. Transaction Code
(Instr. 8)
4. Securities Acquired (A) or Disposed of (D)
(Instr. 3, 4 and 5)
5. Amount of Securities Beneficially Owned Following Reported Transaction(s)
(Instr. 3 and 4)
6. Ownership Form: Direct (D) or Indirect (I)
(Instr. 4)
7. Nature of Indirect Beneficial Ownership
(Instr. 4)
Code V Amount (A) or (D) Price
Common Stock, par value $0.01 per share 0 ( 1 ) ( 2 ) ( 3 ) ( 4 ) D ( 1 ) ( 2 ) ( 3 ) ( 4 )
Table II - Derivative Securities Acquired, Disposed of, or Beneficially Owned
( e.g. , puts, calls, warrants, options, convertible securities)
1. Title of Derivative Security
(Instr. 3)
2. Conversion or Exercise Price of Derivative Security 3. Transaction Date (MM/DD/YY) 3A. Deemed Execution Date, if any (MM/DD/YY) 4. Transaction Code
(Instr. 8)
5. Number of Derivative Securities Acquired (A) or Disposed of (D)
(Instr. 3, 4, and 5)
6. Date Exercisable and Expiration Date
(MM/DD/YY)
7. Title and Amount of Underlying Securities
(Instr. 3 and 4)
8. Price of Derivative Security
(Instr. 5)
9. Number of Derivative Securities Beneficially Owned Following Reported Transaction(s)
(Instr. 4)
10. Ownership Form of Derivative Security: Direct (D) or Indirect (I)
(Instr. 4)
11. Nature of Indirect Beneficial Ownership
(Instr. 4)
Code V (A) (D) Date Exercisable Expiration Date Title Amount or Number of Shares
Senior Secured Convertible Note $ 2.27 ( 10 ) ( 5 )( 6 )( 7 ) 10/31/2021 Common Stock 5,354,947 ( 1 ) ( 5 ) ( 6 ) ( 7 ) ( 8 ) ( 9 ) D ( 1 ) ( 5 ) ( 6 ) ( 7 ) ( 9 )
Reporting Owners
Reporting Owner Name / Address Relationships
Director 10% Owner Officer Other
iSubscribed Inc.
C/O ISUBSCRIBED INC.
15 NETWORK DRIVE
BURLINGTON, MA01803
X
Ravichandran Hari K
ISUBSCRIBED INC., ATTENTION: BLAKE CUN
15 NETWORK DRIVE
BURLINGTON, MA01803
X
Signatures
ISUBSCRIBED INC., By: /s/ Hari Ravichandran, Name: Hari Ravichandran, Title: Chief Executive Officer 11/13/2018
Signature of Reporting Person Date
By: /s/ Hari Ravichandran, Name: Hari Ravichandran 11/13/2018
Signature of Reporting Person Date
Explanation of Responses:
( 1 )This Form 3 is being filed jointly by iSubscribed Inc. and Hari Ravichandran (the "Reporting Persons"). iSubscribed Inc. is one of the three owners of a newly formed joint venture entity called WC SACD One, Inc. ("WC SACD"). WC SACD One Merger Sub, Inc. ("Merger Sub") and WC SACD One Parent, Inc. ("Parent") are newly formed, wholly owned subsidiaries of WC SACD, formed for the purpose of entering into the definitive merger agreement with the Company. Because of the relationship of WC SACD and iSubscribed Inc., each of the Reporting Persons may be deemed to beneficially own the shares of common stock ("Common Stock") of Intersections Inc. (the "Company") beneficially owned by Parent. Mr. Ravichandran is the Chief Executive Officer and a director of the iSubscribed, Inc. and beneficially owns, on a diluted basis, a majority of the common stock of iSubscribed Inc.
( 2 )On October 31, 2018, Parent, Merger Sub and the Company entered into an Agreement and Plan of Merger the "Merger Agreement"), pursuant to which Merger Sub will commence a tender offer (the "Offer") to purchase all of the issued and outstanding shares of common stock, par value $0.01 per share, of the Company ("Common Stock"), for $3.68 per share, in cash. Upon successful completion of the Offer, and subject to the terms and conditions of the Merger Agreement, Merger Sub will be merged with and into the Company with the Company surviving the merger as a wholly owned subsidiary of Parent (the "Merger").
( 3 )(Continued from Footnote 2) In connection with the entry into the Merger Agreement, on October 31, 2018, certain of the Company's stockholders entered into tender and support agreements with Parent (collectively, the "Tender and Support Agreements"), pursuant to which such stockholders, among other things, granted to Parent, its executive officers and any other designee of Parent, power to act as its proxy and attorney-in-fact to vote such stockholder's shares of Common Stock in favor of certain matters relating to the transactions contemplated by the Merger Agreement, including the Merger. For additional information regarding the Tender and Support Agreements and the Merger Agreement, see the Schedule 13D filed by the Reporting Persons with the Securities and Exchange Commission on November 13, 2018.
( 4 )(Continued from Footnote 3) The Reporting Persons expressly disclaim any beneficial ownership of such securities for purposes of Section 16 of the Securities Exchange Act 0f 1934 because the Reporting Persons do not have any pecuniary interest (as defined in Rule 16a-1(a)(2) of the Exchange Act) in any of the shares subject to the Tender and Support Agreements.
( 5 )In connection with the entry into the Merger Agreement, on October 31, 2018, Parent and certain other investors entered into a Note Purchase and Exchange Agreement (the "Note Purchase Agreement") with the Company pursuant to which Parent purchased a Senior Secured Convertible Note of the Company (the "Parent Note") in an aggregate principal amount of $30.0 million.
( 6 )(Continued from Footnote 5) The Parent Note will convert into shares of Common Stock and/or Preferred Stock (as defined below), as applicable, automatically upon the earlier of (a) the time that is immediately prior to the effective time of the Merger and (b) the time that is immediately prior to consummation of a Superior Transaction (as defined in the Note Purchase Agreement), and is convertible into Common Stock and/or Preferred Stock, as applicable, at the option of Parent at any time on or after (c) the date on which closing of an Alternative Transaction (as defined in the Note Purchase Agreement) occurs, (d) a determination by the Company's Board of Directors that the Company is no longer pursuing a process to sell itself and (e) April 30, 2019 (each of (a) through (e), a "Trigger Date").
( 7 )(Continued from Footnote 6) On or after any Trigger Date, the Parent Note is convertible into either (i) to the extent that the Company's Common Stock remains listed on the Nasdaq Stock Market and if such Trigger Date is prior to the date on which Company stockholder approval of the Parent Note becomes effective (such effectiveness date, the "Stockholder Approval Date"), an aggregate of 5,354,947 shares of Common Stock (the "Cap") and 1,572,183 shares of the Company's 6.0% Series A Preferred Stock, par value $0.01 per share ("Preferred Stock"), which Preferred Stock will be convertible into shares of Common Stock on and after the Stockholder Approval Date, or (ii) if such Trigger Date is on or after the Stockholder Approval Date, an aggregate of 13,215,859 shares of Common Stock. Share figures are based on outstanding shares of the Company on an as-converted basis as of October 31, 2018. ISubscribed has a 9.7% pecuniary interest in the Parent Note.
( 8 )Number of shares of Common Stock reported reflects the Cap with respect to the Parent Note.
( 9 )Each of the Reporting Persons disclaims beneficial ownership of such securities except to the extent of their pecuniary interest therein, and the inclusion of such securities in this Form 3 shall not be deemed an admission of beneficial ownership of all of the reported securities for purposes of Section 16 of the Exchange Act or for any other purpose.
( 10 )The Conversion Price is subject to adjustment, as described in the Parent Note.

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