UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

SCHEDULE 13D

(Rule 13d-101)

 

INFORMATION TO BE INCLUDED IN STATEMENTS FILED PURSUANT

TO § 240.13d-1(a) AND AMENDMENTS THERETO FILED PURSUANT TO

§ 240.13d-2(a)

 

(Amendment No. 4)1

 

Turtle Beach Corporation.

(Name of Issuer)

 

Common Stock, par value $0.001 per share

(Title of Class of Securities)

 

900450206

(CUSIP Number)

 

WILLIAM WYATT

THE DONERAIL GROUP LP

240 26th Street

Suite 3

Santa Monica, CA 90402

 

ANDREW M. FREEDMAN ESQ.

OLSHAN FROME WOLOSKY LLP

1325 Avenue of the Americas

New York, New York 10019

(212) 451-2250

(Name, Address and Telephone Number of Person

Authorized to Receive Notices and Communications)

 

December 20, 2021

(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 that is the subject of this Schedule 13D, and is filing this Schedule because of §§ 240.13d-1(e), 240.13d-1(f) or 240.13d-1(g), check the following box ☐.

 

Note: Schedules filed in paper format shall include a signed original and five copies of the schedule, including all exhibits. See § 240.13d-7 for other parties to whom copies are to be sent.

 

 

1              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).

 

 

CUSIP No. 900450206

  1   NAME OF REPORTING PERSON  
         
       

THE DONERAIL GROUP LP 

 
  2   CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a) ☐
        (b) ☐
           
  3   SEC USE ONLY    
           
           
  4   SOURCE OF FUNDS  
         
       

WC, AF 

 
  5   CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEM 2(d) OR 2(e)     ☐
       
           
  6   CITIZENSHIP OR PLACE OF ORGANIZATION  
         
        Delaware  
NUMBER OF   7   SOLE VOTING POWER  
SHARES          
BENEFICIALLY         -0-  
OWNED BY   8   SHARED VOTING POWER  
EACH          
REPORTING        

1,185,816* 

 
PERSON WITH   9   SOLE DISPOSITIVE POWER  
         
          -0-  
    10   SHARED DISPOSITIVE POWER  
           
          1,185,816*   
  11   AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON  
         
        1,185,816*   
  12   CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES     ☐
       
           
  13   PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)  
         
       

7.4% 

 
  14   TYPE OF REPORTING PERSON  
         
       

PN, IA 

 

  

*Includes 600,000 Shares underlying call options currently exercisable as further described in Item 6.

 

2

CUSIP No. 900450206

  1   NAME OF REPORTING PERSON  
         
       

WILLIAM WYATT 

 
  2   CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a) ☐
        (b) ☐
           
  3   SEC USE ONLY    
           
           
  4   SOURCE OF FUNDS  
         
       

WC, AF 

 
  5   CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEM 2(d) OR 2(e)     ☐
       
           
  6   CITIZENSHIP OR PLACE OF ORGANIZATION  
         
       

USA 

 
NUMBER OF   7   SOLE VOTING POWER  
SHARES          
BENEFICIALLY         -0-  
OWNED BY   8   SHARED VOTING POWER  
EACH          
REPORTING        

1,185,816* 

 
PERSON WITH   9   SOLE DISPOSITIVE POWER  
         
          -0-  
    10   SHARED DISPOSITIVE POWER  
           
          1,185,816*   
  11   AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON  
         
        1,185,816*   
  12   CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES     ☐
       
           
  13   PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)  
         
        7.4%  
  14   TYPE OF REPORTING PERSON  
         
        IN  

  

*Includes 600,000 Shares underlying call options currently exercisable as further described in Item 6.

 

3

CUSIP No. 900450206

 

  1   NAME OF REPORTING PERSON  
         
       

HARBERT FUND ADVISORS, INC. 

 
  2   CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a) ☐
        (b) ☐
           
  3   SEC USE ONLY    
           
           
  4   SOURCE OF FUNDS  
         
       

WC, AF 

 
  5   CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEM 2(d) OR 2(e)     ☐
       
           
  6   CITIZENSHIP OR PLACE OF ORGANIZATION  
         
       

Alabama 

 
NUMBER OF   7   SOLE VOTING POWER  
SHARES          
BENEFICIALLY         -0-  
OWNED BY   8   SHARED VOTING POWER  
EACH          
REPORTING        

1,185,816* 

 
PERSON WITH   9   SOLE DISPOSITIVE POWER  
         
          -0-  
    10   SHARED DISPOSITIVE POWER  
           
          1,185,816*   
  11   AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON  
         
        1,185,816*   
  12   CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES     ☐
       
           
  13   PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)  
         
       

7.4% 

 
  14   TYPE OF REPORTING PERSON  
         
        CO  

  

*Includes 600,000 Shares underlying call options currently exercisable as further described in Item 6.

 

4

CUSIP No. 900450206

 

  1   NAME OF REPORTING PERSON  
         
       

HARBERT MANAGEMENT CORPORATION 

 
  2   CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a) ☐
        (b) ☐
           
  3   SEC USE ONLY    
           
           
  4   SOURCE OF FUNDS  
         
       

WC, AF 

 
  5   CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEM 2(d) OR 2(e)     ☐
       
           
  6   CITIZENSHIP OR PLACE OF ORGANIZATION  
         
       

Alabama 

 
NUMBER OF   7   SOLE VOTING POWER  
SHARES          
BENEFICIALLY         -0-  
OWNED BY   8   SHARED VOTING POWER  
EACH          
REPORTING        

1,185,816* 

 
PERSON WITH   9   SOLE DISPOSITIVE POWER  
         
          -0-  
    10   SHARED DISPOSITIVE POWER  
           
          1,185,816*   
  11   AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON  
         
        1,185,816*   
  12   CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES     ☐
       
           
  13   PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)  
         
       

7.4% 

 
  14   TYPE OF REPORTING PERSON  
         
        CO  

  

*Includes 600,000 Shares underlying call options currently exercisable as further described in Item 6.

 

5

CUSIP No. 900450206

 

 

The following constitutes Amendment No. 4 to the Schedule 13D filed by the undersigned (“Amendment No. 4”). This Amendment No. 4 amends the Schedule 13D as specifically set forth herein.

 

Item 4. Purpose of the Transaction.

 

Item 4 is hereby amended to add the following:

 

The Donerail Group (“Donerail”) has been actively engaged with the Issuer’s board of directors (the “Board”) and management for the past nine months regarding a number of value-creating and governance-enhancing topics. In a press release dated December 15, 2021 (the “December 15 Press Release”), Donerail announced its intention to submit a revised offer to acquire the Issuer and called for the Issuer to publicly launch a transparent and comprehensive strategic review process, in which Donerail would intend to participate. The full text of the December 15 Press Release is attached hereto as Exhibit 99.1 and is incorporated herein by reference.

 

In the early morning of December 20, 2021, Donerail submitted a revised offer to acquire the Issuer at $32.86 per share (the “Revised Offer”), subject to confirmatory due diligence.

 

On December 22, 2021, Donerail issued a press release (the “December 22 Press Release”) announcing that it had submitted the Revised Offer and setting the record straight on its engagement with the Issuer. The full text of the December 22 Press Release is attached hereto as Exhibit 99.2 and is incorporated herein by reference.

   

Item 6. Contracts, Arrangements, Understandings or Relationships With Respect to Securities of the Issuer.

 

Item 6 is hereby amended to add the following:

 

Previously, the Donerail Fund purchased American-style exchange listed put options referencing an aggregate of 750,000 Shares, which had an exercise price of $22.00 and expired on November 19, 2021. These put options were sold, as further detailed on Schedule B attached hereto, which is incorporated by reference herein, and, accordingly, the Donerail Fund no longer has any exposure to such put options.

 

Previously, the Donerail Fund purchased American-style exchange listed put options referencing an aggregate of 750,000 Shares, which had an exercise price of $22.00 and expired on December 17, 2021. These put options were sold, as further detailed on Schedule B attached hereto, which is incorporated by reference herein, and, accordingly, the Donerail Fund no longer has any exposure to such put options.

 

The Donerail Fund has purchased American-style exchange listed put options referencing an aggregate of 850,000 Shares, which have an exercise price of $17.50 and expire on January 21, 2022, as further detailed on Schedule B attached hereto, which is incorporated by reference herein.

 

Item 7. Material to be Filed as Exhibits.

 

Item 7 is hereby amended to add the following exhibits:

 

99.1       Press Release, dated December 15, 2021.

 

99.2       Press Release, dated December 22, 2021.

  

6

CUSIP No. 900450206

 SIGNATURES 

After reasonable inquiry and to the best of his knowledge and belief, the undersigned certifies that the information set forth in this statement is true, complete and correct.

 

Dated: December 22, 2021

 

  THE DONERAIL GROUP LP
   
  By: /s/ William Wyatt
 
    Name: William Wyatt
    Title: Managing Partner
       
  /s/ William Wyatt
  William Wyatt
   
  HARBERT FUND ADVISORS, INC.
 
  By: /s/ John W. McCullough
 
    Name: John W. McCullough
    Title: Executive Vice President & General Counsel
       
  HARBERT MANAGEMENT CORPORATION
   
  By: /s/ John W. McCullough
 
    Name: John W. McCullough
    Title: Executive Vice President & General Counsel

 

 

SCHEDULE B

 

Transactions in Securities of the Issuer Since the Filing of Amendment No. 3 to the Schedule 13D

 

Nature of Transaction

Common Stock

Purchased/(Sold) 

Price Per 

Share($)

Date of 

Purchase/Sale

 

Sale of November 19, 2021 Put Options ($22.00 Strike Price) (750,000) 0.0470 11/19/2021
Purchase of December 17, 2021 Put Options ($22.00 Strike Price) 750,000 0.3957 11/19/2021
Sale of December 17, 2021 Put Options ($22.00 Strike Price) (750,000) 0.0500 12/17/2021
Purchase of January 21, 2022 Put Options ($17.50 Strike Price) 850,000 0.3453 12/17/2021

 

  

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