1 EXHIBIT 99.1 UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 SCHEDULE 13D UNDER THE SECURITIES EXCHANGE ACT OF 1934 (AMENDMENT NO. 3)* PSINET, INC. - -------------------------------------------------------------------------------- (Name of Issuer) Common Stock, $.01 per share par value - -------------------------------------------------------------------------------- (Title of Class of Securities) 74437C101 ----------------------------------------- (CUSIP Number) Jeffrey C. Smith with a copy to: General Counsel Michael P. Whalen, Esq. IXC Communications, Inc. Riordan & McKinzie 1122 Capital of Texas Highway South 695 Town Center Drive, Suite 1500 Austin, Texas 78746 Costa Mesa, California 92626 (512) 328-1112 (714) 433-2618 - -------------------------------------------------------------------------------- (Name, Address and Telephone Number of Person Authorized to Receive Notices and Communications) July 6, 1999 ----------------------------------------------------------- (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 which is the subject of this 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 the statement [ ]. NOTE: Six copies of this statement, including all exhibits, should be filed with the Commission. See Rule 13d-1(a) for other parties to whom copies are to be sent. *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). PAGE 1 OF 6 2 SCHEDULE 13D - ----------------------- ----------------------- CUSIP No. 74437C101 PAGE 2 OF 6 PAGES - ----------------------- ----------------------- - -------------------------------------------------------------------------------- 1 NAME OF REPORTING PERSON S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON IXC INTERNET SERVICES, INC. - -------------------------------------------------------------------------------- 2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) [ ] (b) [ ] - -------------------------------------------------------------------------------- 3 SEC USE ONLY - -------------------------------------------------------------------------------- 4 SOURCE OF FUNDS* 00 (See Item 3) - -------------------------------------------------------------------------------- 5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS 2(d) or 2(e) [ ] - -------------------------------------------------------------------------------- 6 CITIZENSHIP OR PLACE OF ORGANIZATION Delaware - -------------------------------------------------------------------------------- 7 SOLE VOTING POWER 0 NUMBER OF ---------------------------------------------------------- SHARES 8 SHARED VOTING POWER BENEFICIALLY 10,229,789 (See Item 5) OWNED BY ---------------------------------------------------------- EACH 9 SOLE DISPOSITIVE POWER REPORTING 0 PERSON ---------------------------------------------------------- WITH 10 SHARED DISPOSITIVE POWER 10,229,789 (See Item 5) - -------------------------------------------------------------------------------- 11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON 10,229,789 (See Item 5) - -------------------------------------------------------------------------------- 12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES* [ ] - -------------------------------------------------------------------------------- 13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) 15.8% - -------------------------------------------------------------------------------- 14 TYPE OF REPORTING PERSON* CO - -------------------------------------------------------------------------------- *SEE INSTRUCTIONS BEFORE FILLING OUT! INCLUDE BOTH SIDES OF THE COVER PAGE, RESPONSES TO ITEMS 1-7 (INCLUDING EXHIBITS) OF THE SCHEDULE, AND THE SIGNATURE ATTESTATION. PAGE 2 OF 6 3 SCHEDULE 13D - ----------------------- ----------------------- CUSIP No. 74437C101 PAGE 3 OF 6 PAGES - ----------------------- ----------------------- - -------------------------------------------------------------------------------- 1 NAME OF REPORTING PERSON S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON IXC COMMUNICATIONS SERVICES, INC. - -------------------------------------------------------------------------------- 2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) [ ] (b) [ ] - -------------------------------------------------------------------------------- 3 SEC USE ONLY - -------------------------------------------------------------------------------- 4 SOURCE OF FUNDS* 00 (See Item 3) - -------------------------------------------------------------------------------- 5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS 2(d) or 2(e) [ ] - -------------------------------------------------------------------------------- 6 CITIZENSHIP OR PLACE OF ORGANIZATION Delaware - -------------------------------------------------------------------------------- 7 SOLE VOTING POWER 0 NUMBER OF ---------------------------------------------------------- SHARES 8 SHARED VOTING POWER BENEFICIALLY 10,229,789 (See Item 5) OWNED BY ---------------------------------------------------------- EACH 9 SOLE DISPOSITIVE POWER REPORTING 0 PERSON ---------------------------------------------------------- WITH 10 SHARED DISPOSITIVE POWER 10,229,789 (See Item 5) - -------------------------------------------------------------------------------- 11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON 10,229,789 (See Item 5) - -------------------------------------------------------------------------------- 12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES* [ ] - -------------------------------------------------------------------------------- 13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) 15.8% - -------------------------------------------------------------------------------- 14 TYPE OF REPORTING PERSON* CO - -------------------------------------------------------------------------------- *SEE INSTRUCTIONS BEFORE FILLING OUT! INCLUDE BOTH SIDES OF THE COVER PAGE, RESPONSES TO ITEMS 1-7 (INCLUDING EXHIBITS) OF THE SCHEDULE, AND THE SIGNATURE ATTESTATION. PAGE 3 OF 6 4 SCHEDULE 13D - ----------------------- ----------------------- CUSIP No. 74437C101 PAGE 4 OF 6 PAGES - ----------------------- ----------------------- - -------------------------------------------------------------------------------- 1 NAME OF REPORTING PERSON S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON IXC COMMUNICATIONS INC. - -------------------------------------------------------------------------------- 2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) [ ] (b) [ ] - -------------------------------------------------------------------------------- 3 SEC USE ONLY - -------------------------------------------------------------------------------- 4 SOURCE OF FUNDS* 00 (See Item 3) - -------------------------------------------------------------------------------- 5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS 2(d) or 2(e) [ ] - -------------------------------------------------------------------------------- 6 CITIZENSHIP OR PLACE OF ORGANIZATION Delaware - -------------------------------------------------------------------------------- 7 SOLE VOTING POWER 0 NUMBER OF ---------------------------------------------------------- SHARES 8 SHARED VOTING POWER BENEFICIALLY 10,229,789 (See Item 5) OWNED BY ---------------------------------------------------------- EACH 9 SOLE DISPOSITIVE POWER REPORTING 0 PERSON ---------------------------------------------------------- WITH 10 SHARED DISPOSITIVE POWER 10,229,789 (See Item 5) - -------------------------------------------------------------------------------- 11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON 10,229,789 (See Item 5) - -------------------------------------------------------------------------------- 12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES* [ ] - -------------------------------------------------------------------------------- 13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) 15.8% - -------------------------------------------------------------------------------- 14 TYPE OF REPORTING PERSON* CO - -------------------------------------------------------------------------------- *SEE INSTRUCTIONS BEFORE FILLING OUT! INCLUDE BOTH SIDES OF THE COVER PAGE, RESPONSES TO ITEMS 1-7 (INCLUDING EXHIBITS) OF THE SCHEDULE, AND THE SIGNATURE ATTESTATION. PAGE 4 OF 6 5 STATEMENT ON SCHEDULE 13D This Amendment No. 3 amends and supplements the statement on Schedule 13D filed on March 10, 1998, as amended by Amendment No. 1 thereto filed on June 17, 1999, and Amendment No. 2 filed on June 29, 1999 by IXC Internet Services, Inc., a Delaware corporation ("Internet"), IXC Communications Services, Inc., a Delaware corporation ("Services"), and IXC Communications, Inc., a Delaware corporation ("IXC"), in respect of the common stock, par value $0.01, CUSIP No. 74437C101 (the "Common Stock"), of PSINet, Inc., a Delaware corporation (the "Issuer"). Internet, Services and IXC are collectively referred to herein as the "Filing Persons." Capitalized terms used and not otherwise defined herein shall have the meanings ascribed to them to them in the initial filing. Item 5. Interest in Securities of The Issuer. Item 5 is hereby amended to add the following: (c) On July 9, 1999, Merrill Lynch International ("MLI") made a payment to Internet of $59,750,860.68 under a forward-purchase contract in connection with the forward sale of the Issuer's Common Stock as described in Item 6. Item 6. Contracts, Arrangements, Understandings or Relationships with Respect to Securities of The Issuer. Item 6 is hereby amended to add the following: Since the filing of Amendment No. 2 to Schedule 13D, Internet and MLI have implemented a forward-purchase arrangement with respect to 1,500,000 shares of the Issuer's Common Stock pursuant to a Confirmation of OTC Transaction (the "Confirmation"), a copy of which is attached as Exhibit 1 hereto. The transaction will be settled in the first quarter of 2002, or sooner upon the occurrence of certain specified events. Internet may settle in cash or in shares of the Issuer's Common Stock, at Internet's option. The amount of cash or number of shares to be paid in settlement will be calculated according to a formula specified in the Confirmation. See Exhibit 1 and the Master Agreement filed with the Commission as Exhibit 4 to Amendment No. 2 to Schedule 13D for further details. Item 7. Material to be Filed as Exhibits. The Filing Persons file as an exhibit the following: Exhibit 1: Confirmation of OTC Transaction between MLI and Internet to be filed via amendment. PAGE 5 OF 6 6 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. Dated: July 16, 1999 IXC INTERNET SERVICES, INC. /s/ JEFFREY C. SMITH ---------------------------------------- By: Jeffrey C. Smith Its: Senior Vice President, General Counsel and Secretary IXC COMMUNICATIONS SERVICES, INC. /s/ JEFFREY C. SMITH ---------------------------------------- By: Jeffrey C. Smith Its: Senior Vice President, General Counsel and Secretary IXC COMMUNICATIONS, INC. /s/ JEFFREY C. SMITH ---------------------------------------- By: Jeffrey C. Smith Its: Senior Vice President, General Counsel and Secretary PAGE 6 OF 6