SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D. C. 20549
SCHEDULE 13D
UNDER THE SECURITIES EXCHANGE ACT OF 1934
Telos Corporation
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(NAME OF ISSUER)
12% Cumulative Exchangeable Redeemable
Preferred Stock, Par value $0.01 Per Share
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(TITLE OF CLASS OF SECURITIES)
87969 B 200
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(CUSIP NUMBER OF CLASS OF SECURITIES)
Wynnefield Partners Small Cap Value, L.P.
One Penn Plaza - Suite 4720
New York, New York 10119
Attention: Mr. Nelson Obus
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(NAME, ADDRESS AND TELEPHONE NUMBER OF PERSON AUTHORIZED
TO RECEIVE NOTICES AND COMMUNICATIONS)
COPY TO:
Jesse R. Meer, Esq.
Berlack, Israels & Liberman LLP
120 West 45th Street
New York, New York 10035
(212)-704-0100
June 17, 1997
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(DATE OF EVENT WHICH REQUIRES FILING OF THIS STATEMENT)
If the filing person has previously filed a Statement on Schedule 13D, and is
filing this schedule because of Rule 13d-1(b)(3) or (4), check the following
box: ( )
Check the following box if a fee is being paid with this Statement: ( )
(Page 1 of 10 Pages)
SCHEDULE 13D
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CUSIP No. 87969 B 200 Page 2 of 10 Pages
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1 | NAME OF REPORTING PERSON: Wynnefield Partners Small Cap Value, L.P.
| S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON: 13-3688497
|
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2 | CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a) [X]
| (b) [ ]
|
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3 | SEC USE ONLY
|
|
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4 | SOURCE OF FUNDS
| WC (SEE ITEM 3)
|
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5 | CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED [ ]
| PURSUANT TO ITEMS 2(d) or (e)
|
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6 | CITIZENSHIP OR PLACE OF ORGANIZATION
|
| DELAWARE
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| 7 | SOLE VOTING POWER
NUMBER OF | |
| |
SHARES | | 180,000
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BENEFICIALLY | 8 | SHARED VOTING POWER
| |
OWNED BY | | _______
| |
EACH ----------------------------------------------------------------
| 9 | SOLE DISPOSITIVE POWER
REPORTING | |
| |
PERSON | | 180,000
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WITH | 10 | SHARED DISPOSITIVE POWER
| |
| | _______
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11 | AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
|
| 180,000 shares
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12 | CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES [ ]
| CERTAIN SHARES
|
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13 | PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
|
| 5.006%
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14 | TYPE OF REPORTING PERSON
|
| PN
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(Page 2 of 10 Pages)
SCHEDULE 13D
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CUSIP No. 87969 B 200 Page 3 of 10 Pages
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1 | NAME OF REPORTING PERSON: CHANNEL PARTNERSHIP II, L.P.
| S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON: 22-3215653
|
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2 | CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a) [X]
| (b) [ ]
|
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3 | SEC USE ONLY
|
|
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4 | SOURCE OF FUNDS
| WC (SEE ITEM 3)
|
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5 | CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED [ ]
| PURSUANT TO ITEMS 2(d) or (e)
|
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6 | CITIZENSHIP OR PLACE OF ORGANIZATION
|
| NEW YORK
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| 7 | SOLE VOTING POWER
NUMBER OF | |
| | 13,500
SHARES | |
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BENEFICIALLY | 8 | SHARED VOTING POWER
| |
OWNED BY | | ______
| |
EACH ----------------------------------------------------------------
| 9 | SOLE DISPOSITIVE POWER
REPORTING | |
| | 13,500
PERSON | |
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WITH | 10 | SHARED DISPOSITIVE POWER
| |
| | ______
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11 | AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
| 13,500 shares
|
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12 | CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES [ ]
| CERTAIN SHARES
|
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13 | PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
|
| .375
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14 | TYPE OF REPORTING PERSON
|
| PN
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(Page 3 of 10 Pages)
SCHEDULE 13D
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CUSIP No. 87969 B 200 Page 4 of 10 Pages
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1 | NAME OF REPORTING PERSON: Wynnefield Small Cap Value Offshore Fund, Ltd.
| S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON: Not Applicable
|
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2 | CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a) [X]
| (b) [ ]
|
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3 | SEC USE ONLY
|
|
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4 | SOURCE OF FUNDS
| WC (SEE ITEM 3)
|
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5 | CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED [ ]
| PURSUANT TO ITEMS 2(d) or (e)
|
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6 | CITIZENSHIP OR PLACE OF ORGANIZATION
|
| CAYMAN ISLANDS
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| 7 | SOLE VOTING POWER
NUMBER OF | |
| | 35,000
SHARES | |
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BENEFICIALLY | 8 | SHARED VOTING POWER
| |
OWNED BY | | _______
| |
EACH ----------------------------------------------------------------
| 9 | SOLE DISPOSITIVE POWER
REPORTING | |
| | 35,000
PERSON | |
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WITH | 10 | SHARED DISPOSITIVE POWER
| |
| | _______
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11 | AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
| 35,000 shares
|
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12 | CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES [ ]
| CERTAIN SHARES
|
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13 | PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
|
| .973%
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14 | TYPE OF REPORTING PERSON
|
| CO
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(Page 4 of 10 Pages)
ITEM 1. SECURITY AND ISSUER.
This Statement relates to shares of the 12% Cumulative Exchangeable Redeemable
Preferred Stock, $0.01 par value per share (the "Preferred Shares"), of Telos
Corporation, a Maryland corporation (the "Issuer"). The principal executive
offices of the Issuer are located at 460 Herndon Parkway, Herndon, Virginia
22070-5201.
ITEM 2. IDENTITY AND BACKGROUND.
(a), (b), (c) and (f). This Statement is being filed by Wynnefield
Partners Small Cap Value, L.P. (the "Partnership"), Channel Partnership II L.P.
("Channel"), and Wynnefield Small Cap Value Offshore Fund, Ltd. (the "Fund").
The general partners of the Partnership, a private investment company
organized as a limited partnership under the laws of the State of Delaware, are
Nelson Obus and Joshua Landes. Mr. Obus is also the general partner of Channel,
a private investment company organized as a limited partnership under the laws
of the State of New York. Mr. Obus and Mr. Landes are principal executive
officers of Wynnefield Capital, Inc., the investment manager of the Fund, a
private investment company organized under the laws of the Cayman Islands. Mr.
Obus and Mr. Landes are citizens of the United States of America.
The business address of Mr. Obus, Mr. Landes, the Partnership,
Channel and the Fund is One Penn Plaza, Suite 4720, New York, New York 10119.
(d) and (e). During the last five years, neither Mr. Obus, Mr.
Landes, the Partnership, Channel nor the Fund has been
(Page 5 of 10 Pages)
(i) convicted in a criminal proceeding (excluding traffic violations or similar
misdemeanors) or (ii) 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.
ITEM 3. SOURCE AND AMOUNT OF FUNDS OR OTHER CONSIDERATION.
The Partnership purchased 180,000 Preferred Shares for a total
consideration of $704,120, Channel purchased 13,500 Preferred Shares for a total
consideration of $53,340 and the Fund purchased 35,000 Preferred Shares for a
total consideration of $116,650. Such Preferred Shares were paid for from the
working capital of each of the Partnership, Channel and the Fund, each of which
maintains an investment fund, consisting of capital contributions from their
respective partners and investors and capital appreciation derived therefrom for
the principal purpose of buying and selling securities (including financial and
money market instruments) and interests in domestic and foreign securities,
including, without limitation, convertible securities, stock index features
contracts, options, puts and calls on stock and warrants.
ITEM 4. PURPOSES OF TRANSACTION.
The Partnership, Channel and the Fund acquired the Preferred Shares
reported in Item 5 below for investment purposes. They intend to monitor the
performance of the Issuer and evaluate the responses of its management to the
needs of the Preferred stockholders of the Issuer in the near term with a view
(Page 6 of 10 Pages)
to various options that might be or become available to them. Such options
include, among other things, meetings with the Issuer's management and exploring
procedures for obtaining representation on the Board of Directors of the Issuer
for the holders of the Preferred Shares. If as a result of monitoring the
Issuer's performance and evaluating management's responses, the Partnership,
Channel and the Fund determine that the Preferred Shares represent an attractive
investment opportunity, they reserve the right to buy additional Preferred
Shares with the understanding that neither such purchases nor the exercise of
their rights as Preferred stockholders are intended as "control" devices with
respect to the Issuer.
Except as set forth above, neither the Partnership, Channel, nor the
Fund has any present plans or intentions which would result in or relate to any
of the transactions described in subparagraphs (a) through (j) of Item 4 of
Schedule 13D.
ITEM 5. INTERESTS IN SECURITIES OF THE ISSUER.
(a) As of the close of business on the date hereof, the Partnership,
Channel and the Fund had direct beneficial ownership of a total of 228,500
Preferred Shares, the separate ownership of which is set forth in Item 3 of this
Statement. Mr. Obus and Mr. Landes by virtue of their status as general partners
of the Partnership and Mr. Obus as a general partner of Channel and Mr. Obus and
Mr. Landers as officers of the Fund's investment manager may be deemed to have
indirect beneficial ownership of the Preferred Shares owned by the Partnership,
Channel and the Fund. The Preferred Shares owned by the Partnership, Channel and
the Fund represent approximately 6.36% of the outstanding Preferred Shares of
the Issuer, based on the 3,595,586 Preferred
(Page 7 of 10 Pages)
Shares reported as outstanding on March 31, 1997 in the Issuer's Quarterly
Report on Form 10Q.
Pursuant to Rule 13d-4 of the General Rules and Regulations under the
Securities and Exchange Act of 1934, as amended (the "Exchange Act"), Mr. Obus
and Mr. Landes disclaim beneficial ownership of any Preferred Shares owned by
the Partnership, Channel and the Fund and disclaim membership in any "group"
with any of the foregoing investors with respect to the Preferred Shares for
purposes of Sections 13(d) and 13(g) of the Exchange Act or for any other
purpose under any other provision of the Exchange Act or the rules and
regulations promulgated thereunder.
(b) Mr. Obus and Mr. Landes, by virtue of their status as general
partners of the Partnership, Mr. Obus as general partner of Channel, and Mr.
Obus and Mr. Landes as officers of the Fund's investment manager, have the power
to vote or to direct the vote and the power to dispose and to direct the
disposition of the 228,500 Preferred Shares owned by the Partnership, Channel
and the Fund.
(c) During 1997, the Partnership purchased 75,000 Preferred Shares on
February 25, 1997 for a consideration of $266,250, and 40,000 Preferred Shares
on June 17, 1997 for a consideration of $111,600; Channel purchased 6,000
Preferred Shares on February 25, 1997 for a consideration of $21,300; and the
Fund purchased 25,000 Preferred Shares on February 25, 1997 for a consideration
of $88,750 and 10,000 Preferred Shares on June 17, 1997 for a consideration of
$27,900.
(d) Each of the beneficial owners of the Preferred Shares covered by
this Statement has the right to receive or the
(Page 8 of 10 Pages)
power to direct the receipt of dividends from, or the proceeds from the sale of,
the Preferred Shares covered by this Statement.
(e) Not applicable.
ITEM 6. CONTRACTS, ARRANGEMENTS, UNDERSTANDINGS OR RELATIONSHIPS WITH RESPECT
TO SECURITIES OF THE ISSUER.
Neither Mr. Obus, Mr. Landes, the Partnership, Channel, nor the Fund
has any contracts, arrangements, understandings or relationships (legal or
otherwise) with any person with respect to any securities of the Issuer,
including but not limited to any contracts, arrangements, understandings or
relationships concerning the transfer or voting of such securities, finder's
fees, joint ventures, loan or option arrangements, puts or calls, guarantees of
profits, division of profits or losses, or the giving or withholding of proxies.
ITEM 7. MATERIAL TO BE FILED AS EXHIBITS.
Not applicable.
(Page 9 of 10 Pages)
SIGNATURE
After reasonable inquiry and to the best of their knowledge and
belief, the undersigned certify that the information set forth in this Statement
is true, complete and correct.
Dated: June 23, 1997
WYNNEFIELD PARTNERS SMALL CAP VALUE, L.P.
By: /s/ NELSON OBUS
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Nelson Obus, General Partner
CHANNEL PARTNERSHIP II, L.P.
By: /s/ NELSON OBUS
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Nelson Obus, General Partner
WYNNEFIELD SMALL CAP VALUE OFFSHORE
FUND, LTD.
By: Wynnefield Capital, Inc.
/s/ NELSON OBUS
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Nelson Obus, President
(Page 10 of 10 Pages)