UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
SCHEDULE 13D
under the Securities Exchange Act of 1934
(Amendment No. 2)*
PXRE GROUP LTD.
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(Name of Issuer)
COMMON SHARES, PAR VALUE $1.00 PER SHARE
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(Title of Class of Securities)
G73018106
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(CUSIP Number)
Capital Z Management, LLC
54 Thompson Street
New York, New York 10012
Attention: Craig Fisher, Esq.
(212) 965-0800
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(Name, Address and Telephone Number of Person
Authorized to Receive Notices and Communications)
March 31, 2005
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(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)
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1 NAMES OF REPORTING PERSONS. CAPITAL Z FINANCIAL SERVICES FUND II, 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) /X/
(b) / /
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3 SEC USE ONLY
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SOURCE OF FUNDS (SEE INSTRUCTIONS)
4
OO - CONTRIBUTION FROM PARTNERS
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5 CHECK IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT
TO ITEMS 2(d) OR 2(e) /_/
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6 CITIZENSHIP OR PLACE OF ORGANIZATION BERMUDA
------------------------------------ ----------- ---------------------------------------------------------------------
7 SOLE VOTING POWER
NUMBER OF 6,756,987 (1)
SHARES ----------- ---------------------------------------------------------------------
BENEFICIALLY 8 SHARED VOTING POWER
OWNED BY
EACH 0
REPORTING ----------- ---------------------------------------------------------------------
PERSON 9 SOLE DISPOSITIVE POWER
WITH
6,756,987 (1)
----------- ---------------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
0
------------- --------------------------------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
6,805,478
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12 CHECK IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
CERTAIN SHARES (SEE INSTRUCTIONS) /X/
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13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
24.6%
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14 TYPE OF REPORTING PERSON (SEE INSTRUCTIONS)
PN
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1. Assumes conversion of all Preferred Shares, par value $1.00 per share
("Preferred Shares") beneficially owned by the Reporting Person to Common
Shares, par value $1.00 per share ("Common Shares"), at a conversion price of
$13.27 per share.
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1 NAMES OF REPORTING PERSONS. CAPITAL Z FINANCIAL SERVICES PRIVATE FUND II, 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) /X/
(b) / /
------------- --------------------------------------------------------------------------------------------------------
3 SEC USE ONLY
------------- --------------------------------------------------------------------------------------------------------
SOURCE OF FUNDS (SEE INSTRUCTIONS)
4
OO - CONTRIBUTION FROM PARTNERS
------------- --------------------------------------------------------------------------------------------------------
5 CHECK IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT
TO ITEMS 2(d) OR 2(e) /_/
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6 CITIZENSHIP OR PLACE OF ORGANIZATION BERMUDA
------------------------------------ ----------- ---------------------------------------------------------------------
7 SOLE VOTING POWER
NUMBER OF 35,992 (1)
SHARES ----------- ---------------------------------------------------------------------
BENEFICIALLY 8 SHARED VOTING POWER
OWNED BY
EACH 0
REPORTING ----------- ---------------------------------------------------------------------
PERSON 9 SOLE DISPOSITIVE POWER
WITH
35,992 (1)
----------- ---------------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
0
------------- --------------------------------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
6,805,478
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12 CHECK IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
CERTAIN SHARES (SEE INSTRUCTIONS) /X/
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13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
24.6%
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14 TYPE OF REPORTING PERSON (SEE INSTRUCTIONS)
PN
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1. Assumes conversion of all Preferred Shares beneficially owned by the
Reporting Person to Common Shares at a conversion price of $13.27 per share.
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1 NAMES OF REPORTING PERSONS. CAPITAL Z 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) /X/
(b) / /
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3 SEC USE ONLY
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4 SOURCE OF FUNDS (SEE INSTRUCTIONS) Not Applicable
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5 CHECK IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT
TO ITEMS 2(d) OR 2(e) /_/
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6 CITIZENSHIP OR PLACE OF ORGANIZATION BERMUDA
------------------------------------ ----------- ---------------------------------------------------------------------
7 SOLE VOTING POWER
NUMBER OF
SHARES ----------- ---------------------------------------------------------------------
BENEFICIALLY 8 SHARED VOTING POWER
OWNED BY
EACH 6,792,979 (1)
REPORTING ----------- ---------------------------------------------------------------------
PERSON 9 SOLE DISPOSITIVE POWER
WITH
----------- ---------------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
6,792,979 (1)
------------- --------------------------------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
6,805,478
------------- --------------------------------------------------------------------------------------------------------
12 CHECK IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
CERTAIN SHARES (SEE INSTRUCTIONS) /X/
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13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
24.6%
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14 TYPE OF REPORTING PERSON (SEE INSTRUCTIONS)
PN
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1. Includes 2,375,090 and 12,651 Common Shares issuable upon conversion of
3,151.744 and 16.788 Preferred Shares held by Capital Z Financial Services
Fund II, L.P. ("Capital Z Fund II") and Capital Z Financial Services Private
Fund II, L.P. ("Capital Z Private Fund II"), respectively, upon conversion of
Preferred Shares at a conversion price of $13.27 per share; and 4,381,897 and
23,341 Common Shares issuable upon conversion of an equal number of
Convertible Common Shares held by Capital Z Fund II and Capital Z Private Fund
II, respectively.
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1 NAMES OF REPORTING PERSONS. CAPITAL Z PARTNERS, LTD.
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY).
------------- --------------------------------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP
(SEE INSTRUCTIONS) (a) /X/
(b) / /
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3 SEC USE ONLY
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4 SOURCE OF FUNDS (SEE INSTRUCTIONS) Not Applicable
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5 CHECK IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT
TO ITEMS 2(d) OR 2(e) /_/
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6 CITIZENSHIP OR PLACE OF ORGANIZATION BERMUDA
------------------------------------ ----------- ---------------------------------------------------------------------
7 SOLE VOTING POWER
NUMBER OF 0
SHARES ----------- ---------------------------------------------------------------------
BENEFICIALLY 8 SHARED VOTING POWER
OWNED BY
EACH 6,792,979 (1)
REPORTING ----------- ---------------------------------------------------------------------
PERSON 9 SOLE DISPOSITIVE POWER
WITH
----------- ---------------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
6,792,979 (1)
------------- --------------------------------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
6,805,478
------------- --------------------------------------------------------------------------------------------------------
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)
24.6%
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14 TYPE OF REPORTING PERSON (SEE INSTRUCTIONS)
CO
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1. Includes 2,375,090 and 12,651 Common Shares issuable upon conversion of
3,151.744 and 16.788 Preferred Shares held by Capital Z Financial Services
Fund II, L.P. ("Capital Z Fund II") and Capital Z Financial Services Private
Fund II, L.P. ("Capital Z Private Fund II"), respectively, upon conversion of
Preferred Shares at a conversion price of $13.27 per share; and 4,381,897 and
23,341 Common Shares issuable upon conversion of an equal number of
Convertible Common Shares held by Capital Z Fund II and Capital Z Private Fund
II, respectively.
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1 NAMES OF REPORTING PERSONS. CAPITAL Z MANAGEMENT, LLC
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY).
------------- --------------------------------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP
(SEE INSTRUCTIONS) (a) /X/
(b) / /
------------- --------------------------------------------------------------------------------------------------------
3 SEC USE ONLY
------------- --------------------------------------------------------------------------------------------------------
4 SOURCE OF FUNDS (SEE INSTRUCTIONS) Not Applicable
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5 CHECK IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT
TO ITEMS 2(d) OR 2(e) /_/
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6 CITIZENSHIP OR PLACE OF ORGANIZATION DELAWARE
------------------------------------ ----------- ---------------------------------------------------------------------
7 SOLE VOTING POWER
NUMBER OF 12,499 (1)
SHARES ----------- ---------------------------------------------------------------------
BENEFICIALLY 8 SHARED VOTING POWER
OWNED BY
EACH 0
REPORTING ----------- ---------------------------------------------------------------------
PERSON 9 SOLE DISPOSITIVE POWER
WITH
12,499 (1)
----------- ---------------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
0
------------- --------------------------------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
6,805,478
------------- --------------------------------------------------------------------------------------------------------
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)
24.6%
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14 TYPE OF REPORTING PERSON (SEE INSTRUCTIONS)
OO
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1. Includes 7,500 restricted Common Shares and an option exercisable within 60
days to purchase 4,999 Common Shares.
This Amendment No. 2 amends the Statement of Schedule 13D, filed on
June 27, 2003 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. a Bermuda limited partnership ("Capital Z Private Fund II"), Capital
Z Partners, L.P., a Bermuda limited partnership ("Capital Z L.P."), Capital Z
Partners, Ltd., a Bermuda corporation ("Capital Z Ltd.") and Capital Z
Management, LLC, a Delaware limited liability company ("Capital Z Management",
collectively, the "Reporting Persons"), as amended by Amendment No. 1, filed
on December 29, 2004 (as so amended, the "Initial Statement on Schedule 13D").
This Amendment No. 2 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.
Capitalized terms used in this Amendment without definition have the
meanings ascribed to them in the Initial Statement on Schedule 13D.
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, Capital Z Fund II and Capital Z
Private Fund II held 5,809.612 and 30.946 Series B1 Convertible Voting
Preferred Shares, respectively, which converted into 4,381,897 and 23,341
Class B Convertible Common Shares, respectively. 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 position
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 Reporting Persons also
intend to continue to have active participation in the management of the
Company through representation on the Board of Directors. Except as set forth
in this Item 4 (including the matters described in Item 6 in the Initial
Statement on Schedule 13D which are incorporated in this Item 4 by reference),
the Reporting Persons have no present plans or proposals that relate to or
that would result in 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.
Capital Z Management may be deemed to be part of a group together
with Capital Z Fund II, Capital Z Private Fund II, Capital Z L.P. and Capital
Z Ltd. and therefore be deemed to beneficially own the shares beneficially
owned by Capital Z Fund II, Capital Z Private Fund II, Capital Z L.P. and
Capital Z Ltd. but no
Reporting Person affirms the existence of any such group. Such group would
beneficially own 6,805,478 Common Shares, assuming conversion of all Preferred
Shares held by such group at a conversion price of $13.27, which would
represent 24.6% of the total outstanding Common Shares.
Capital Z Management disclaims any beneficial ownership of any
shares owned or deemed to be beneficially owned by Capital Z Fund II, Capital
Z Private Fund II, Capital Z L.P. and Capital Z Ltd. Capital Z Fund II,
Capital Z Private Fund II, Capital Z L.P. and Capital Z Ltd. each disclaim
beneficial ownership of any shares owned by Capital Z Management. 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 all outstanding
Preferred Shares held by the Reporting Persons are converted into Common
Shares.
(c) 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. Joint Filing Agreement, dated April 8, 2005.
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
Capital Z Financial Services Fund II, L.P.
By: Capital Z Partners, Ltd.,
its ultimate general partner
By: /s/ Craig Fisher
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Craig Fisher
General Counsel
Capital Z Financial Services Private
Fund II, L.P.
By: Capital Z Partners, Ltd.,
its ultimate general partner
By: /s/ Craig Fisher
---------------------------------------
Craig Fisher
General Counsel
Capital Z Partners, L.P.
By: Capital Z Partners, Ltd.,
its ultimate general partner
By: /s/ Craig Fisher
---------------------------------------
Craig Fisher
General Counsel
Capital Z Partners, Ltd.
By: /s/ Craig Fisher
---------------------------------------
Craig Fisher
General Counsel
Capital Z Management, LLC
By: /s/ Craig Fisher
---------------------------------------
Craig Fisher
General Counsel
Exhibit Index
1. Joint Filing Agreement, dated April 8, 2005.