UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
SCHEDULE 13D
under the Securities Exchange Act of 1934
(Amendment No. 3)*
PXRE GROUP LTD.
------------------------------------------------------------------------------
(Name of Issuer)
COMMON SHARES, PAR VALUE $1.00 PER SHARE
------------------------------------------------------------------------------
(Title of Class of Securities)
G73018106
----------------------------
(CUSIP Number)
Reservoir Capital Partners, L.P.
Reservoir Capital Master Fund, L.P.
Reservoir Capital Management, L.L.C.
Reservoir Capital Group, L.L.C.
c/o Reservoir Capital Group, L.L.C.
650 Madison Avenue, 26th Floor
New York, New York 10022
Attention: General Counsel
(212) 610-9000
and
RER Reinsurance Holdings, L.P.
777 Main Street, Suite 2250
Fort Worth, Texas 76102
(817) 820-6600
and
Richard E. Rainwater
777 Main Street, Suite 2250
Fort Worth, TX 76102
(817) 820-6600
------------------------------------------------------------------------------
(Name, Address and Telephone Number of Person Authorized to Receive
Notices and Communications)
March 31, 2005
--------------------------------------
(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 ss.ss.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 ss.240.13d-7 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).
(Continued on the following pages)
------------- --------------------------------------------------------------------------------------------------------
1 NAMES OF REPORTING PERSONS. Reservoir Capital Partners, L.P.
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY).
------------- --------------------------------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP
(SEE INSTRUCTIONS) (a) /_/
(b) /X/
------------- --------------------------------------------------------------------------------------------------------
3 SEC USE ONLY
------------- --------------------------------------------------------------------------------------------------------
4 SOURCE OF FUNDS (SEE INSTRUCTIONS) Not Applicable
------------- --------------------------------------------------------------------------------------------------------
5 CHECK 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
2,506,371 (1)
----------- ---------------------------------------------------------------------
NUMBER OF 8 SHARED VOTING POWER
SHARES
BENEFICIALLY 0
OWNED BY ----------- ---------------------------------------------------------------------
EACH
REPORTING 9 SOLE DISPOSITIVE POWER
PERSON
WITH 2,506,371 (1)
----------- ---------------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
0
------------- --------------------------------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
2,936,576 (2)
------------- --------------------------------------------------------------------------------------------------------
12 CHECK IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
CERTAIN SHARES (SEE INSTRUCTIONS) /X/
------------- --------------------------------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
12.4%
------------- --------------------------------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON (SEE INSTRUCTIONS)
PN
------------- --------------------------------------------------------------------------------------------------------
1. Includes 1,024,679 Common Shares, par value $1.00 per share ("Common
Shares") issuable upon conversion of 1,359.749 Preferred Shares, par value
$1.00 per share ("Preferred Shares"), 1,353,197 Common Shares issuable upon
conversion of an equal number of Convertible Common Shares, par value $1.00
per share ("Convertible Common Shares") and 128,495 Common Shares held by
Reservoir Capital Partners, L.P. ("Reservoir Partners"). Assumes conversion of
all Preferred Shares beneficially owned by the Reporting Person to Common
Shares at a conversion price of $13.27 per share.
2. The Reporting Person disclaims beneficial ownership of all securities that
may be owned or deemed owned by any of Capital Z Financial Services Fund II,
L.P., Capital Z Financial Services Private Fund II, L.P., Capital Z Partners,
L.P., Capital Z Partners, Ltd., Capital Z
Management, LLC (collectively, "Capital Z"), SAB Capital Partners, L.P., SAB
Capital Partners II, L.P., SAB Overseas Fund, Ltd., SAB Capital Advisors,
L.L.C. (collectively "SAB"), RER Reinsurance Holdings, L.P. or Richard E.
Rainwater (collectively, "RER").
------------- --------------------------------------------------------------------------------------------------------
1 NAMES OF REPORTING PERSONS. Reservoir Capital Master Fund, L.P.
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY).
------------- --------------------------------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP
(SEE INSTRUCTIONS) (a) /_/
(b) /X/
------------- --------------------------------------------------------------------------------------------------------
3 SEC USE ONLY
------------- --------------------------------------------------------------------------------------------------------
4 SOURCE OF FUNDS (SEE INSTRUCTIONS) Not Applicable
------------- --------------------------------------------------------------------------------------------------------
5 CHECK IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT
TO ITEMS 2(d) OR 2(e) /_/
------------- --------------------------------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION Cayman Islands
------------- --------------------------------------------------------------------------------------------------------
7 SOLE VOTING POWER
421,873 (1)
----------- ---------------------------------------------------------------------
NUMBER OF 8 SHARED VOTING POWER
SHARES
BENEFICIALLY 0
OWNED BY ----------- ---------------------------------------------------------------------
EACH
REPORTING 9 SOLE DISPOSITIVE POWER
PERSON
WITH 421,873 (1)
----------- ---------------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
0
------------- --------------------------------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
2,936,576 (1) (2)
------------- --------------------------------------------------------------------------------------------------------
12 CHECK IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
CERTAIN SHARES (SEE INSTRUCTIONS) /X/
------------- --------------------------------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
12.4%
------------- --------------------------------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON (SEE INSTRUCTIONS)
PN
------------- --------------------------------------------------------------------------------------------------------
1. Includes 172,376 Common Shares issuable upon conversion of 228.743
Preferred Shares, 227,642 Common Shares issuable upon conversion of an equal
number of Convertible Common Shares and 21,855 Common Shares held by Reservoir
Capital Master Fund, L.P. ("Reservoir Master Fund"). Assumes conversion of all
Preferred Shares beneficially owned by the Reporting Person to Common Shares
at a conversion price of $13.27 per share.
2. The Reporting Person disclaims beneficial ownership of all securities that
may be owned or deemed owned by any of Capital Z, SAB or RER.
------------- --------------------------------------------------------------------------------------------------------
1 NAMES OF REPORTING PERSONS. Reservoir Capital Group, L.L.C.
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY).
------------- --------------------------------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP
(SEE INSTRUCTIONS) (a) /_/
(b) /X/
------------- --------------------------------------------------------------------------------------------------------
3 SEC USE ONLY
------------- --------------------------------------------------------------------------------------------------------
4 SOURCE OF FUNDS (SEE INSTRUCTIONS) Not Applicable
------------- --------------------------------------------------------------------------------------------------------
5 CHECK 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
8,332
----------- ---------------------------------------------------------------------
NUMBER OF 8 SHARED VOTING POWER
SHARES
BENEFICIALLY 2,936,576 (1)
OWNED BY ----------- ---------------------------------------------------------------------
EACH
REPORTING 9 SOLE DISPOSITIVE POWER
PERSON
WITH 8,332
----------- ---------------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
2,936,576 (1)
------------- --------------------------------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
2,936,576 (1)(2)
------------- --------------------------------------------------------------------------------------------------------
12 CHECK IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
CERTAIN SHARES (SEE INSTRUCTIONS) /X/
------------- --------------------------------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
12.4%
------------- --------------------------------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON (SEE INSTRUCTIONS)
OO
------------- --------------------------------------------------------------------------------------------------------
1. Includes 1,024,679 and 172,376 Common Shares issuable upon conversion of
1,359.749 and 228.743 Preferred Shares held by Reservoir Partners and
Reservoir Master Fund, respectively; 1,353,197 and 227,642 Common Shares
issuable upon conversion of an equal number of Convertible Common Shares held
by Reservoir Partners and Reservoir Master Fund, respectively; 5,000
restricted Common Shares and options exercisable within 60 days to purchase
3,332 Common Shares held by Reservoir Capital Group, L.L.C. ("Reservoir
Group"); 128,495 Common Shares held by Reservoir Partners; and 21,855 Common
Shares held by Reservoir Master Fund. Assumes conversion of all Preferred
Shares beneficially owned by the Reporting Persons to Common Shares at a
conversion price of $13.27 per share.
2. The Reporting Person disclaims beneficial ownership of all securities that
may be owned or deemed owned by any of Capital Z, SAB or RER.
------------- --------------------------------------------------------------------------------------------------------
1 NAMES OF REPORTING PERSONS. Reservoir Capital Management, L.L.C.
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY).
------------- --------------------------------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP
(SEE INSTRUCTIONS) (a) /_/
(b) /X/
------------- --------------------------------------------------------------------------------------------------------
3 SEC USE ONLY
------------- --------------------------------------------------------------------------------------------------------
4 SOURCE OF FUNDS (SEE INSTRUCTIONS) Not Applicable
------------- --------------------------------------------------------------------------------------------------------
5 CHECK 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 8 SHARED VOTING POWER
SHARES
BENEFICIALLY 2,936,576 (1)
OWNED BY ----------- ---------------------------------------------------------------------
EACH
REPORTING 9 SOLE DISPOSITIVE POWER
PERSON
WITH 0
----------- ---------------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
2,936,576 (1)
------------- --------------------------------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
2,936,576 (1)(2)
------------- --------------------------------------------------------------------------------------------------------
12 CHECK IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
CERTAIN SHARES (SEE INSTRUCTIONS) /X/
------------- --------------------------------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
12.4%
------------- --------------------------------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON (SEE INSTRUCTIONS)
OO
------------- --------------------------------------------------------------------------------------------------------
1. Includes 1,024,679 and 172,376 Common Shares issuable upon conversion of
1,359.749 and 228.743 Preferred Shares held by Reservoir Partners and
Reservoir Master Fund, respectively; 1,353,197 and 227,642 Common Shares
issuable upon conversion of an equal number of Convertible Common Shares held
by Reservoir Partners and Reservoir Master Fund, respectively; 5,000
restricted Common Shares and options exercisable within 60 days to purchase
3,332 Common Shares held by Reservoir Capital Group, L.L.C. ("Reservoir
Group"); 128,495 Common Shares held by Reservoir Partners; and 21,855 Common
Shares held by Reservoir Master Fund. Assumes conversion of all Preferred
Shares beneficially owned by Reservoir Partners, Reservoir Master Fund,
Reservoir Group and Reservoir Capital Management, L.L.C. ("Reservoir
Management") to Common Shares at a conversion price of $13.27 per share.
2. The Reporting Person disclaims beneficial ownership of all securities that
may be owned or deemed owned by any of Capital Z, SAB or RER.
------------- --------------------------------------------------------------------------------------------------------
1 NAMES OF REPORTING PERSONS. RER Reinsurance Holdings, L.P.
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY).
------------- --------------------------------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP
(SEE INSTRUCTIONS) (a) /_/
(b) /X/
------------- --------------------------------------------------------------------------------------------------------
3 SEC USE ONLY
------------- --------------------------------------------------------------------------------------------------------
4 SOURCE OF FUNDS (SEE INSTRUCTIONS) Not Applicable
------------- --------------------------------------------------------------------------------------------------------
5 CHECK IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT
TO ITEMS 2(d) OR 2(e) /_/
------------- --------------------------------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION Texas
------------- --------------------------------------------------------------------------------------------------------
7 SOLE VOTING POWER
1,773,123 (1)
----------- ---------------------------------------------------------------------
NUMBER OF 8 SHARED VOTING POWER
SHARES
BENEFICIALLY 0
OWNED BY ----------- ---------------------------------------------------------------------
EACH
REPORTING 9 SOLE DISPOSITIVE POWER
PERSON
WITH 1,773,123 (1)
----------- ---------------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
0
------------- --------------------------------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
1,773,123 (1)(2)
------------- --------------------------------------------------------------------------------------------------------
12 CHECK IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
CERTAIN SHARES (SEE INSTRUCTIONS) /X/
------------- --------------------------------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
7.8%
------------- --------------------------------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON (SEE INSTRUCTIONS)
PN
------------- --------------------------------------------------------------------------------------------------------
1. Includes 764,077 Common Shares issuable upon conversion of 1,013.930
Preferred Shares and 1,009,046 Common Shares issuable upon conversion of an
equal number of Convertible Common Shares held by RER Reinsurance Holdings,
L.P. Assumes the conversion of all Preferred Shares beneficially owned by
Reporting Person to Common Shares at a conversion price of $13.27.
2. The Reporting Person disclaims beneficial ownership of all securities that
may be owned or deemed owned by any of Capital Z, Reservoir Partners,
Reservoir Master Fund, Reservoir Group and Reservoir Management (collectively,
"Reservoir") or SAB.
------------- --------------------------------------------------------------------------------------------------------
1 NAMES OF REPORTING PERSONS. Richard E. Rainwater
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY).
------------- --------------------------------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP
(SEE INSTRUCTIONS) (a) /_/
(b) /X/
------------- --------------------------------------------------------------------------------------------------------
3 SEC USE ONLY
------------- --------------------------------------------------------------------------------------------------------
4 SOURCE OF FUNDS (SEE INSTRUCTIONS) Not Applicable
------------- --------------------------------------------------------------------------------------------------------
5 CHECK IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT
TO ITEMS 2(d) OR 2(e) /_/
------------- --------------------------------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION Texas
------------- --------------------------------------------------------------------------------------------------------
7 SOLE VOTING POWER
0
----------- ---------------------------------------------------------------------
NUMBER OF 8 SOLE VOTING POWER
SHARES
BENEFICIALLY 1,773,123 (1)
OWNED BY ----------- ---------------------------------------------------------------------
EACH
REPORTING 9 SHARED VOTING POWER
PERSON
WITH 0
----------- ---------------------------------------------------------------------
10 SOLE DISPOSITIVE POWER
1,773,123 (1)
------------- --------------------------------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
1,773,123 (1)(2)
------------- --------------------------------------------------------------------------------------------------------
12 CHECK IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
CERTAIN SHARES (SEE INSTRUCTIONS) /X/
------------- --------------------------------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
7.8%
------------- --------------------------------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON (SEE INSTRUCTIONS)
IN
------------- --------------------------------------------------------------------------------------------------------
1. Includes 764,077 Common Shares issuable upon conversion of 1,013.930
Preferred Shares and 1,009,046 Common Shares issuable upon conversion of an
equal number of Convertible Common Shares held by RER Reinsurance Holdings,
L.P. Assumes the conversion of all Preferred Shares beneficially owned by
Reporting Person to Common Shares at a conversion price of $13.27.
2. The Reporting Person disclaims beneficial ownership of all securities that
may be owned or deemed owned by any of Capital Z, Reservoir, SAB or RER
Reinsurance Holdings, L.P.
This Amendment No. 3 amends the Statement on Schedule 13D, dated
December 20, 2001, filed by Capital Z Financial Services Fund II, L.P., a
Bermuda limited partnership ("Capital Z Fund II"), Capital Z Financial
Services Private Fund II, L.P. ("Capital Z Private Fund II"), Capital Z
Partners, L.P., a Bermuda limited partnership ("Capital Z L.P."), and Capital
Z Partners, Ltd., a Bermuda corporation ("Capital Z Ltd.", and together with
Capital Z Fund II and Capital Z L.P., the "Initial Capital Z Reporting
Persons"), Reservoir Capital Master Fund, L.P. ("Reservoir Master Fund"),
Reservoir Capital Partners, L.P. ("Reservoir Partners"), Reservoir Capital
Group, L.L.C. ("Reservoir Group"), Reservoir Capital Management, L.L.C.
("Reservoir Management") and Reservoir Capital Associates, L.P. ("Reservoir
Associates", and together with Reservoir Master Fund, Reservoir Partners,
Reservoir Group and Reservoir Management, the "Initial Reservoir Reporting
Persons") and Richard E. Rainwater ("Rainwater"), as amended by Amendment No.
1 on Schedule 13D, dated July 15, 2002, and Amendment No. 2 on Schedule 13D,
filed on December 13, 2004, each filed by the Initial Capital Z Reporting
Persons, the Initial Reservoir Reporting Persons and RER Reinsurance Holdings,
Inc. ("RER") (as so amended, the "Initial Statement on Schedule 13D"). This
Amendment is being filed by the Initial Reservoir Reporting Persons other than
Reservoir Associates (the "Reservoir Reporting Persons"), RER and Rainwater
(each, a "Reporting Person" and collectively, the "Reporting Persons").
Reservoir Associates was liquidated prior to the date of the event which
required the filing of this statement and its assets were contributed to
Reservoir Partners. Capitalized terms used in this Amendment without
definition have the meanings ascribed to them in the Initial Statement on
Schedule 13D.
This Amendment No. 3 incorporates by reference all of the
information contained in the Initial Statement on Schedule 13D except to the
extent that the information contained herein amends and supplements the
information contained on the Initial Statement on Schedule 13D, in particular
by reflecting the sale of common shares, the acquisition of options to
purchase common shares of PXRE Group Ltd. and the conversion of Convertible
Voting Preferred Shares, par value $1.00 per share ("Preferred Shares") held
by certain Reporting Persons into Convertible Common Shares ("Convertible
Common Shares").
Item 4. Purpose of Transaction.
On March 31, 2005, mandatorily convertible Series A1 Convertible
Voting Preferred Shares, Series B1 Convertible Voting Preferred Shares and
Series C1 Convertible Voting Preferred Shares (the "Convertible Voting
Preferred Shares") of PXRE Group, Ltd. (the "Company") were converted into
Class A Convertible Voting Common Shares, Class B Convertible Voting Common
Shares and Class C Convertible Voting Common Shares (the "Convertible Common
Shares"). The conversion was effected based upon a conversion price of $13.27,
which conversion price was agreed between the Company and holders of the
Company's Convertible Voting Preferred Shares pursuant to a letter agreement
dated as of March 31, 2005.
Immediately prior to the conversion, Reservoir Partners and
Reservoir Master Fund held 1,794.098 and 301.812 Series B1 Convertible Voting
Preferred Shares, respectively, which converted into 1,353,197 and 227,642
Class B Convertible Common Shares, respectively, and RER held 1,337.815 Series
C1 Convertible Voting Preferred Shares which converted into 1,009,046 Class C
Convertible Common Shares. The Convertible Common Shares are convertible at a
one-to-one ratio into the Company's Common Shares at any time by the holder.
The Reporting Persons consummated the transactions described herein
for investment purposes.
The Reporting Persons intend to review continuously their respective
positions in the Company. Depending upon further evaluations of the business
prospects of the Company and upon other developments, including, but not
limited to, general economic and business conditions and stock market
conditions, the Reporting Persons may retain or from time to time increase
their holdings or dispose of all or a portion of their holdings subject to any
applicable legal and contractual restrictions on their ability to do so in
privately negotiated transactions, open market purchases or otherwise. The
Reservoir Reporting Persons also intend to continue to exercise their
contractual right to nominate an individual for election to the Company's
Board of Directors. RER also continues to have the contractual right to
nominate an individual for election to the Board of Directors. Except as set
forth in this Item 4, the Reporting Persons, neither individually or
collectively, have any present plans or proposals that relate to or that would
result in the occurrence of any of the actions specified in clauses (a)
through (j) of Item 4 of Schedule 13D of the Securities Exchange Act of 1934,
as amended.
Item 5. Interest in Securities of the Issuer.
Item 5 is hereby amended and supplemented by adding the following:
(a) - (b)
The information on the cover pages is incorporated herein by
reference.
Each Reporting Person disclaims beneficial ownership of all the
Common Shares and Preferred Shares owned by each other Reporting Person. The
Reporting Persons may be deemed to be part of a group together with SAB
Capital Partners, L.P., SAB Capital Partners II, L.P., SAB Overseas Fund,
Ltd., SAB Capital Advisors, L.L.C. (collectively, "SAB") and the Capital Z
Reporting Persons and therefore be deemed to beneficially own the shares
beneficially owned by SAB and the Capital Z Reporting Persons, but no
Reporting Person affirms the existence of any such group. Based on information
provided in the Company's latest publicly available reports and by members of
such group, such group would beneficially own 12,700,198 Common Shares (SAB,
1,185,021 Common Shares; the Capital Z Reporting Persons, 6,805,478 Common
Shares; Reservoir Reporting Persons, 2,936,576 Common Shares; RER and
Rainwater, 1,773,123 Common Shares), which would represent 38.1% of the total
outstanding Common Shares as of March 18, 2005, assuming conversion of all
Preferred Shares held by such group at a conversion price of $13.27. The
Reporting Persons disclaim any such beneficial ownership.
Each Reservoir Reporting Person may, as a result of the transactions
described herein, be deemed to beneficially own 2,936,576 Common Shares by
virtue of Reservoir Partner's and Reservoir Master Fund's ownership of
1,024,679 and 172,376 Common Shares issuable upon conversion of 1,359.749 and
228.743 Preferred Shares held by Reservoir Partners and Reservoir Master Fund,
respectively (assuming conversion of all Preferred Shares held by such persons
at a conversion price of $13.27); 1,353,197 and 227,642 Common Shares issuable
upon conversion of an equal number of Convertible Common Shares held by
Reservoir Partners and Reservoir Master Fund, respectively; 5,000 restricted
Common Shares and options exercisable within 60 days to purchase 3,222 Common
Shares held by Reservoir Group; 128,495 Common Shares held by Reservoir
Partners; and 21,855 Common Shares held by Reservoir Master Fund. Each of the
Reservoir Reporting Persons has the shared power to vote or direct the vote,
and to dispose or to direct the disposition, of such shares. Such shares
represent, in the aggregate, approximately 12.4% of the outstanding total
Common Shares, assuming conversion of all Preferred Shares held by the
Reservoir Reporting Persons at a conversion price of $13.27. The percentage of
voting rights represented by the shares held by the Reservoir Reporting
Persons, assuming all holders of Preferred Shares cast their votes, would be,
in the aggregate, approximately 8.8% of the total voting power of the Common
Shares.
All calculations made herein are made in accordance with Rule
13d-3(d) of the Securities Exchange Act of 1934, as amended, and based on the
20,818,630 Common Shares outstanding as of March 18, 2005, and assuming that
only those Preferred Shares with respect to the relevant person or group, as
the case may be, are converted into Common Shares.
The aggregate number of Common Shares represented by this Statement
represents approximately 18.6% of the outstanding Common Shares, assuming
conversion of all Preferred Shares held by the Reservoir Reporting Persons,
RER and Rainwater at a conversion price of $13.27. The percentage of voting
rights represented by the shares held by the Reservoir Reporting Persons, RER
and Rainwater, assuming all holders of Preferred Shares cast their votes,
would be, in the aggregate, 14.1% of the total voting power of the Common
Shares.
Pursuant to the terms of the Preferred Shares as set forth in
Section 7(d) of the Description of Stock, the conversion price of the
Preferred Shares was adjusted as of March 31, 2005 to $13.27.
Other than the transactions described above, the Reporting Persons
have not effected any transactions in respect of the Common Shares or the
Preferred Shares within the past 60 days.
(d) None.
(e) Not applicable.
Item 7. Material to be Filed as Exhibits.
1. Power of Attorney for Rainwater (incorporated by reference to the
Power of Attorney filed with the SEC as Exhibit 6 to Amendment No. 4 to the
Crescent Real Estate Equities Company Schedule 13D (SEC file No. 005-46150),
filed on October 30, 2002).
SIGNATURES
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.
Date: April 8, 2005
Reservoir Capital Group, L.L.C.
By: /s/ Craig Huff
---------------------------------------------
Craig Huff
President
Reservoir Capital Partners, L.P.
By: Reservoir Capital Group, L.L.C., its sole general
partner
By: /s/ Craig Huff
---------------------------------------------
Craig Huff
President
Reservoir Capital Master Fund, L.P.
By: Reservoir Capital Group, L.L.C., its sole general
partner
By: /s/ Craig Huff
---------------------------------------------
Craig Huff
President
Reservoir Capital Management, L.L.C.
By: /s/ Craig Huff
---------------------------------------------
Craig Huff
President
RER Reinsurance Holdings, L.P.
By: /s/ Richard E. Rainwater by M. Parrish
---------------------------------------------
Richard E. Rainwater, General Partner
Melissa Parrish
Attorney-in-Fact
Richard E. Rainwater
By: /s/ Richard E. Rainwater by M. Parrish
---------------------------------------------
Melissa Parrish
Attorney-in-Fact
Exhibit Index
1. Power of Attorney for Rainwater (incorporated by reference to the
Power of Attorney filed with the SEC as Exhibit 6 to Amendment No. 4 to the
Crescent Real Estate Equities Company (SEC file No. 005-46150), filed on
October 30, 2002).