Is Internap Corp (NASDAQ:INAP) a good investment? Peter S. Park seems to think so. His fund, Park West Asset Management, has initiated a position and has accumulated exactly 3 million shares, according to a recent filing with the Securities and Exchange Commission. The fund’s stake amounts to approximately 5.2% of the company’s outstanding stock.
A provider of internet infrastructure services, Internap Corp (NASDAQ:INAP) has seen its stock plunge to historic lows during 2016, having lost 75% of its value between January and December. The company has started 2017 with a plan to reduce costs, reorganize its operations and recapitalize its balance sheet, while also aiming to bolster its sales team as it develops two new business units: Colocation and Cloud. At the end of December, Internap issued a press release that included some forecasts for 2017: revenue of $275 million to $285 million and adjusted EBITDA in the range of $84 million to $87 million. The company also said it will take into consideration selling some of its non-core assets and terminating programs that are not profitable.
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In general, Internap Corp (NASDAQ:INAP) is not a very popular stock among the hedge funds followed by Insider Monkey. It’s status sunk even lower as the number of funds invested in the company fell to 11 at the end of the 2016 third quarter, from 15 registered at the end of June. Mario Gabelli‘s GAMCO Investors was one of the company’s largest shareholder, having indicated ownership of 7.33 million shares in its latest 13F filing. Jim Simons’ Renaissance Technologies, one of the largest hedge funds in the world, was also invested in Internap Corp, having amassed 1.07 million shares by the end of the 2016 third quarter.
You can access the original SEC filing by clicking here.
Ownership Summary Table
| Name | Sole Voting Power | Shared Voting Power | Sole Dispositive Power | Shared Dispositive Power | Aggregate Amount Owned Power | Percent of Class |
|---|---|---|---|---|---|---|
| Park West Asset Management | 3,000,000 | 0 | 3,000,000 | 0 | 3,000,000 | 5.2% |
| Peter S. Park | 3,000,000 | 0 | 3,000,000 | 0 | 3,000,000 | 5.2% |
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Page 1 of 9 – SEC Filing
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
SCHEDULE 13G
Under the Securities Exchange Act of 1934
(Amendment No. )*
| INTERNAP CORPORATION |
| (Name of Issuer) |
| COMMON STOCK, $0.001 PAR VALUE PER SHARE |
| (Title of Class of Securities) |
| 45885A300 |
| (CUSIP Number) |
| DECEMBER 27, 2016 |
| (Date of Event Which Requires Filing of this Statement) |
Check the appropriate box to designate the rule pursuant to which this Schedule 13G is filed:
☐ Rule 13d-1(b)
☒ Rule 13d-1(c)
☐ 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 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 (“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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Page 2 of 9 – SEC Filing
| CUSIP No. 45885A300 |
| (1) Names of Reporting Persons Park West Asset Management LLC |
| (2) Check the Appropriate Box if a Member of a Group (See Instructions) | (a) ☐ (b) ☐ |
| (3) SEC Use Only |
| (4) Citizenship or Place of Organization Delaware |
| Number of Shares Beneficially Owned by Each Reporting Person With: | (5) Sole Voting Power 3,000,000* | |
| (6) Shared Voting Power | 0 | |
| (7) Sole Dispositive Power 3,000,000* | ||
| (8) Shared Dispositive Power | 0 |
| (9) Aggregate Amount Beneficially Owned by Each Reporting Person 3,000,000* |
| (10) Check if the Aggregate Amount in Row (9) Excludes Certain Shares (See Instructions): ☐ |
| (11) Percent of Class Represented by Amount in Row (9) 5.2%* |
| (12) Type of Reporting Person (See Instructions) IA |
* Beneficial ownership percentage is based upon 58,245,920 shares of common stock, $0.001 par value per share (“Common Stock”), of Internap Corporation., a Delaware corporation (the “Company”), issued and outstanding as of September 30, 2016, based on information reported by the Company in its Quarterly Report on Form 10-Q filed with the Securities and Exchange Commission on November 3, 2016. Park West Asset Management LLC (“PWAM”) is the investment manager to Park West Investors Master Fund, Limited, a Cayman Islands exempted company (“PWIMF”), and Park West Partners International, Limited, a Cayman Islands exempted company (“PWPI” and, collectively with PWIMF, the “PW Funds”), and Peter S. Park (“Mr. Park” and, collectively with PWAM, the “Reporting Persons”) is the sole member and manager of PWAM. As of December 27, 2016, PWIMF held 2,648,965 shares of Common Stock of the Company and PWPI held 351,035 shares of Common Stock of the Company. As a result of the foregoing, for purposes of Reg. Section 240.13d-3, the Reporting Persons may be deemed to beneficially own the 3,000,000 shares of Common Stock of the Company held in the aggregate by the PW Funds, or approximately 5.2% of the shares of Common Stock of the Company deemed to be issued and outstanding as of December 27, 2016.
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Page 3 of 9 – SEC Filing
| CUSIP No. 45885A300 |
| (1) Names of Reporting Persons Peter S. Park |
| (2) Check the Appropriate Box if a Member of a Group (See Instructions) | (a) ☐ (b) ☐ |
| (3) SEC Use Only |
| (4) Citizenship or Place of Organization United States of America |
| Number of Shares Beneficially Owned by Each Reporting Person With: | (5) Sole Voting Power 3,000,000* | |
| (6) Shared Voting Power | 0 | |
| (7) Sole Dispositive Power 3,000,000* | ||
| (8) Shared Dispositive Power | 0 |
| (9) Aggregate Amount Beneficially Owned by Each Reporting Person 3,000,000 |
| (10) Check if the Aggregate Amount in Row (9) Excludes Certain Shares (See Instructions): ☐ |
| (11) Percent of Class Represented by Amount in Row (9) 5.2%* |
| (12) Type of Reporting Person (See Instructions) IN |
* Beneficial ownership percentage is based upon 58,245,920 shares of Common Stock of the Company, issued and outstanding as of September 30, 2016, based on information reported by the Company in its Quarterly Report on Form 10-Q filed with the Securities and Exchange Commission on November 3, 2016. PWAM is the investment manager to the PW Funds, and Mr. Park is the sole member and manager of PWAM. As of Decmeber 27, 2016, PWIMF held 2,648,965 shares of Common Stock of the Company and PWPI held 351,035 shares of Common Stock of the Company. As a result of the foregoing, for purposes of Reg. Section 240.13d-3, the Reporting Persons may be deemed to beneficially own the 3,000,000 shares of Common Stock of the Company held in the aggregate by the PW Funds, or approximately 5.2% of the shares of Common Stock of the Company deemed to be issued and outstanding as of December 27, 2016.
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Page 4 of 9 – SEC Filing
| Item 1(a). | Name Of Issuer: Internap Corporation (the “Company”) |
| Item 1(b). | Address of Issuer’s Principal Executive Offices. |
One Ravinia Drive, Suite 1300
Atlanta, Georgia 30346
Atlanta, Georgia 30346
| Item 2(a). | Name of Person Filing. |
This report on Schedule 13G (this “Schedule 13G”), is being jointly filed by (i) Park West Asset Management LLC (“PWAM”), a Delaware limited liability company and the investment manager to (a) Park West Investors Master Fund, Limited (“PWIMF”), a Cayman Islands exempted company that is the holder of 2,648,965 shares of common stock, $0.001 par value per share (“Common Stock”), of the Company reported on this Schedule 13G, and (b) Park West Partners International, Limited (“PWPI” and, collectively with PWIMF, the “PW Funds”), a Cayman Islands exempted company that is the holder of 351,035 shares of Common Stock of the Company reported on this Schedule 13G; and (ii) Peter S. Park, as the sole member and manager of PWAM (“Mr. Park” and, collectively with PWAM, the “Reporting Persons”).
The 3,000,000 shares of Common Stock of the Company held in the aggregate by the PW Funds, which constitute approximately 5.2% of the shares of Common Stock of the Company deemed to be issued and outstanding as of December 27, 2016, may be deemed to be beneficially owned (x) indirectly by PWAM, as the investment adviser to PWIMF and PWPI, and (y) indirectly by Mr. Park, as the sole member and manager of PWAM.
| Item 2(b). | Address of Principal Business Office or, if None, Residence. |
The address for the Reporting Persons is: 900 Larkspur Landing Circle, Suite 165, Larkspur, California 94939.
| Item 2(c). | Citizenship. |
PWAM is organized under the laws of the State of Delaware. Mr. Park is a citizen of the United States.
| Item 2(d). | Title of Class of Securities. |
Common stock, $0.001 par value per share.
| Item 2(e). | CUSIP No. |
45885A300
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Page 5 of 9 – SEC Filing
| Item 3. | If This Statement Is Filed Pursuant to §§240.13d-1(b) or 240.13d-2(b) or (c), check whether the Person Filing is a: |
Not Applicable.
| Item 4. | Ownership. |
| (a) Amount Beneficially Owned: | 3,000,000* |
| (b) Percent of Class: | 5.2%* |
| (c) Number of Shares as to which the person has: | |
| (i) sole power to vote or to direct the vote: | 3,000,000* |
| (ii) shared power to vote or to direct the vote | 0 |
| (iii) sole power to dispose or to direct the disposition of: | 3,000,000* |
| (iv) shared power to dispose or to direct the disposition of | 0 |
* This Schedule 13G is being jointly filed by (i) PWAM, a Delaware limited liability company and the investment manager to (a) PWIMF, a Cayman Islands exempted company that is the holder of 2,648,965 shares of Common Stock of the Company, as reported on this Schedule 13G, and (b) PWPI, a Cayman Islands exempted company that is the holder of 351,035 shares of Common Stock of the Company, as reported on this Schedule 13G; and (ii) Mr. Park, as the sole member and manager of PWAM.
The 3,000,000 shares of Common Stock of the Company held in the aggregate by the PW Funds, which constitute approximately 5.2% of the shares of Common Stock of the Company deemed to be issued and outstanding as of December 27, 2016, may be deemed to be beneficially owned (x) indirectly by PWAM, as the investment adviser to PWIMF and PWPI, and (y) indirectly by Mr. Park, as the sole member and manager of PWAM. The foregoing beneficial ownership percentage is based upon 58,245,920 shares of Common Stock of the Company, issued and outstanding as of September 30, 2016, based on information reported by the Company in its Quarterly Report on Form 10-Q filed with the Securities and Exchange Commission on November 3, 2016.
| 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: ☐
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Page 6 of 9 – SEC Filing
| Item 6. | Ownership of More Than Five Percent on Behalf of Another Person. |
Not Applicable.
| 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. | Certification. |
By signing below I certify that, to the best of my knowledge and belief, the securities referred to above were not acquired and are not held for the purpose of or with the effect of changing or influencing the control of the issuer of the securities and were not acquired and are not held in connection with or as a participant in any transaction having that purpose or effect.
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Page 7 of 9 – SEC Filing
SIGNATURE
After reasonable inquiry and to the best of my knowledge and belief, I certify that the information set forth in this statement is true, complete and correct.
| January 6, 2017 | |||
| PARK WEST ASSET MANAGEMENT LLC | |||
| By: | /s/ Grace Jimenez | ||
| Name: Grace Jimenez | |||
| Title: Chief Financial Officer | |||
| /s/ Peter S. Park | |||
| Peter S. Park | |||
Attention: Intentional misstatements or omissions of fact constitute
Federal criminal violations (See 18 U.S.C. 1001)
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Page 8 of 9 – SEC Filing
Exhibit Index
| Exhibit | Page |
| A. Joint Filing Agreement, dated as of January 6, 2017, by and between Park West Asset Management LLC and Peter S. Park. | 9 |
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Page 9 of 9 – SEC Filing
Exhibit A
JOINT FILING AGREEMENT
In accordance with Rule 13d-1(k) under the Securities Exchange Act of 1934, as amended, the persons named below agree to the joint filing on behalf of them of a statement on Schedule 13G (including amendments thereto) with respect to the shares of common stock, $0.001 par value per share, of Internap Corporation, a Delaware corporation, and further agree that this Joint Filing Agreement be included as Exhibit A to such Schedule 13G. In evidence thereof, the undersigned hereby execute this agreement this 6th day of January, 2017.
| /s/ | Peter S. Park | |||
| Peter S. Park | ||||
| PARK WEST ASSET MANAGEMENT LLC | ||||
| By: | /s/ | Grace Jimenez | ||
| Name: Grace Jimenez | ||||
| Title: Chief Financial Officer | ||||
9
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