UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
SCHEDULE 13D
(Amendment No. 1)
Under the Securities Exchange Act of 1934
PROFIT RECOVERY GROUP INTERNATIONAL, INC.
------------------------------------------
(Name of Issuer)
COMMON STOCK
-------------------------------------
(Title of Class of Securities)
743168106
---------
(CUSIP Number)
Murray A. Indick
BLUM Capital Partners, L.P.
909 Montgomery Street, Suite 400
San Francisco, CA 94133
(415) 434-1111
--------------
(Name, Address and Telephone Number of Person
Authorized to Receive Notices and Communications)
November 20, 2001
-----------------
(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 [ ].
*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 11
CUSIP NO. 743168106 SCHEDULE 13D Page 2 of 11
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1. NAME OF REPORTING PERSON BLUM CAPITAL PARTNERS, L.P.
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON 94-3205364
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2. CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) [x]
(b) [x]
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3. SEC USE ONLY
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4. SOURCE OF FUNDS* See Item 3
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5. CHECK BOX 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 California
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7. SOLE VOTING POWER -0-
NUMBER OF -----------------------------------------------------------
SHARES 8. SHARED VOTING POWER 5,912,175**
BENEFICIALLY
OWNED BY EACH -----------------------------------------------------------
PERSON WITH 9. SOLE DISPOSITIVE POWER -0-
-----------------------------------------------------------
10. SHARED DISPOSITIVE POWER 5,912,175**
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11. AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON 5,912,175**
------------------------------------------------------------------------------
12. CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
CERTAIN SHARES [ ]
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13. PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) 11.36**
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14. TYPE OF REPORTING PERSON PN, IA
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** See Item 5
*SEE INSTRUCTIONS BEFORE FILLING OUT!
CUSIP NO. 743168106 SCHEDULE 13D Page 3 of 11
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1. NAME OF REPORTING PERSON RICHARD C. BLUM & ASSOCIATES, INC.
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON 94-2967812
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2. CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) [x]
(b) [x]
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3. SEC USE ONLY
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4. SOURCE OF FUNDS* See Item 3
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5. CHECK BOX 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 California
------------------------------------------------------------------------------
7. SOLE VOTING POWER -0-
NUMBER OF -----------------------------------------------------------
SHARES 8. SHARED VOTING POWER 5,912,175**
BENEFICIALLY
OWNED BY EACH -----------------------------------------------------------
PERSON WITH 9. SOLE DISPOSITIVE POWER -0-
-----------------------------------------------------------
10. SHARED DISPOSITIVE POWER 5,912,175**
------------------------------------------------------------------------------
11. AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON 5,912,175**
------------------------------------------------------------------------------
12. CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
CERTAIN SHARES [ ]
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13. PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) 11.36**
------------------------------------------------------------------------------
14. TYPE OF REPORTING PERSON CO
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** See Item 5
*SEE INSTRUCTIONS BEFORE FILLING OUT!
CUSIP NO. 743168106 SCHEDULE 13D Page 4 of 11
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1. NAME OF REPORTING PERSON RCBA GP, L.L.C.
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON 94-3303831
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2. CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) [x]
(b) [x]
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3. SEC USE ONLY
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4. SOURCE OF FUNDS* See Item 3
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5. CHECK BOX 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
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7. SOLE VOTING POWER -0-
NUMBER OF -----------------------------------------------------------
SHARES 8. SHARED VOTING POWER 5,912,175**
BENEFICIALLY
OWNED BY EACH -----------------------------------------------------------
PERSON WITH 9. SOLE DISPOSITIVE POWER -0-
-----------------------------------------------------------
10. SHARED DISPOSITIVE POWER 5,912,175**
------------------------------------------------------------------------------
11. AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON 5,912,175**
------------------------------------------------------------------------------
12. CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
CERTAIN SHARES [ ]
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13. PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) 11.36**
------------------------------------------------------------------------------
14. TYPE OF REPORTING PERSON OO (Limited Liability Company)
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** See Item 5
*SEE INSTRUCTIONS BEFORE FILLING OUT!
CUSIP NO. 743168106 SCHEDULE 13D Page 5 of 11
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1. NAME OF REPORTING PERSON BLUM STRATEGIC GP II, L.L.C.
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON 94-3395150
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2. CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) [x]
(b) [x]
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3. SEC USE ONLY
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4. SOURCE OF FUNDS* 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 5,912,175**
BENEFICIALLY
OWNED BY EACH -----------------------------------------------------------
PERSON WITH 9. SOLE DISPOSITIVE POWER -0-
-----------------------------------------------------------
10. SHARED DISPOSITIVE POWER 5,912,175**
------------------------------------------------------------------------------
11. AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON 5,912,175**
------------------------------------------------------------------------------
12. CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
CERTAIN SHARES [ ]
------------------------------------------------------------------------------
13. PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) 11.36**
------------------------------------------------------------------------------
14. TYPE OF REPORTING PERSON OO (Limited Liability Company)
------------------------------------------------------------------------------
** See Item 5
*SEE INSTRUCTIONS BEFORE FILLING OUT!
CUSIP NO. 743168106 SCHEDULE 13D Page 6 of 11
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1. NAME OF REPORTING PERSON RICHARD C. BLUM
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
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2. CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) [x]
(b) [x]
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3. SEC USE ONLY
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4. SOURCE OF FUNDS* See Item 3
------------------------------------------------------------------------------
5. CHECK BOX 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 U.S.A.
------------------------------------------------------------------------------
7. SOLE VOTING POWER -0-
NUMBER OF -----------------------------------------------------------
SHARES 8. SHARED VOTING POWER 5,912,175**
BENEFICIALLY
OWNED BY EACH -----------------------------------------------------------
PERSON WITH 9. SOLE DISPOSITIVE POWER -0-
-----------------------------------------------------------
10. SHARED DISPOSITIVE POWER 5,912,175**
------------------------------------------------------------------------------
11. AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON 5,912,175**
------------------------------------------------------------------------------
12. CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
CERTAIN SHARES [ ]
------------------------------------------------------------------------------
13. PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) 11.36**
------------------------------------------------------------------------------
14. TYPE OF REPORTING PERSON IN
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** See Item 5
*SEE INSTRUCTIONS BEFORE FILLING OUT!
CUSIP NO. 743168106 SCHEDULE 13D Page 7 of 11
Item 1. Security and Issuer
----------------------------
This Amendment No. 1 amends the Statement on Schedule 13D (the "Schedule 13D")
filed with the Securities and Exchange Commission (the "Commission") on
November 13, 2001 by Blum Capital Partners, L.P., a California limited
partnership, ("BLUM L.P."); Richard C. Blum & Associates, Inc., a California
corporation ("RCBA Inc."); RCBA GP, L.L.C., a Delaware limited liability
company ("RCBA GP"); and Richard C. Blum, the Chairman and a substantial
shareholder of RCBA Inc. and a managing member of RCBA GP (collectively, the
"Reporting Persons"). This amendment to the Schedule 13D relates to shares of
Common Stock and Convertible Subordinated Notes (the "Convertible Notes") of
Profit Recovery Group International, Inc., a Delaware corporation (the
"Issuer"). The principal executive office and mailing address of the Issuer
is 2300 Windy Ridge Parkway, Suite 100 North, Atlanta, Georgia 30339-8426.
The following amendments to Items 4, 5 and 6 of the Schedule 13D are hereby
made because BLUM L.P. and RCBA Inc. have purchased Convertible Notes as part
of the transaction described in Item 4 below. Unless otherwise defined
herein, all capitalized terms shall have the meanings ascribed to them in the
Schedule 13D.
Item 4. Purpose of Transaction
---------------------------------
(a), (b) The Issuer reported, in a press release dated November 20, 2001, that
it sold $95 million of Convertible Notes on November 20, 2001 on the terms and
conditions set forth therein. The Issuer had previously announced an intended
offering in its Form 8-K filed with the Securities and Exchange Commission on
November 15, 2001. BLUM L.P. and RCBA Inc. acquired $25 million in aggregate
principal amount of Convertible Notes. The Reporting Persons refer to the
press release for details concerning the Convertible Notes.
The Convertible Notes are convertible, at the option of a holder, at any time
on or prior to maturity, into shares of common stock of the Issuer. Interest
on the Convertible Notes accrues at a rate of 4.75% per year, subject to
adjustment in certain circumstances. The Convertible Notes have a five-year
term and are convertible into shares of the Issuer's common stock at a
conversion price of $7.74 per share.
In the event that the Reporting Persons converted the Convertible Notes into
shares of Common Stock, the Reporting Persons would own approximately 11.36%
of the Common Stock. See Item 5, below.
Item 5. Interest in Securities of the Issuer
---------------------------------------------
(a),(b) According to the Issuer's most recent Form 10-Q, there were 48,797,620
shares of Common Stock issued and outstanding as of October 31, 2001. Based
on such information, after taking into account the transactions described in
Item 5(c) below, the Reporting Persons report direct holdings as follows:
CUSIP NO. 743168106 SCHEDULE 13D Page 8 of 11
(i) BLUM L.P. and RCBA Inc. report holdings of 1,540,700 of the Common Stock
on behalf of the limited partnerships for which BLUM L.P. serves as the
general partner and BLUM L.P.'s investment advisory clients, which represents
3.2% of the outstanding shares of the Common Stock; (ii) RCBA GP reports
holdings of 117,700 shares of the Common Stock on behalf of the limited
partnership for which it serves as the general partner, which represents 0.2%
of the outstanding shares of the Common Stock; (iii) Blum GP reports holdings
of 857,400 shares of the Common Stock on behalf of the limited partnership for
which it serves as the general partner, which represents 1.8% of the
outstanding shares of the Common Stock; and (iv) Mr. Blum reports the
aggregate of these shares for a total of 2,515,800 shares of the Common Stock,
which represents 5.2% of the outstanding shares of the Common Stock.
In addition, because BLUM L.P. has voting and investment power with respect to
166,400 shares that are legally owned by The Common Fund for the accounts of
its Value Opportunities Fund and Multi-Strategy Equity Fund, (collectively,
"The Common Fund") those shares are reported as beneficially owned by BLUM
L.P. The Common Fund is principally engaged in the business of managing
investments for educational institutions. The principal administrative office
of The Common Fund is located at 15 Old Danbury Road, Wilton, Connecticut
06897-0812. The Common Fund disclaims membership in a group with any of the
Reporting Persons, and disclaims beneficial ownership of any shares held by
the Reporting Persons.
Voting and investment power concerning the above shares are held solely by
BLUM L.P., RCBA GP and Blum GP. The Reporting Persons therefore may be deemed
to be members in a group, in which case each Reporting Person would be deemed
to have beneficial ownership of an aggregate of 2,682,200 shares of the Common
Stock, which is 5.5% of the outstanding Common Stock. As the sole general
partner of BLUM L.P., RCBA Inc. is deemed the beneficial owner of the
securities over which BLUM L.P. has voting and investment power. As Chairman,
director and a substantial shareholder of RCBA Inc., Richard C. Blum might be
deemed to be the beneficial owner of the securities beneficially owned by RCBA
Inc. Additionally, Mr. Blum may be deemed to be the beneficial owner of the
securities over which RCBA GP and Blum GP have voting and investment power.
Although Mr. Blum is joining in this Schedule as a Reporting Person, the
filing of this Schedule shall not be construed as an admission that he, or any
of the other shareholders, directors or executive officers of RCBA Inc.,
managing members and members of RCBA GP and Blum GP, is, for any purpose, the
beneficial owner of any of the securities that are beneficially owned by RCBA
Inc., RCBA GP or Blum GP, except to the extent of any pecuniary interest
therein.
In addition to the foregoing, in the event that the Reporting Persons
converted the Convertible Notes into Common Stock, the Reporting Persons would
be deemed to have beneficial ownership of an aggregate of 5,912,175 shares,
and the Issuer would be deemed to have 52,027,595 shares issued and
outstanding. The Reporting Persons would thus be deemed to have beneficial
ownership of 11.36% of the Common Stock.
CUSIP NO. 743168106 SCHEDULE 13D Page 9 of 11
(c) During the last 60 days, the Reporting Persons purchased the following
shares of Common Stock in the open market:
Entity Trade Date Shares Price/Share
------ ---------- ------ ------------
BLUM L.P.'s limited partnership 11/16/01 100,000 6.89800
and investment advisory client
accounts (including The
Common Fund)
Entity Trade Date Shares Price/Share
------ ---------- ------ -----------
The limited partnership for 11/16/01 100,000 6.89800
which Blum GP serves as the
general partner
(d) and (e) Not applicable.
Item 6. Contracts, Arrangements, Understandings or Relationships with
Respect to Securities of the Issuer.
------------------------------------------------------------------------
None of the Reporting Persons or, to the best knowledge of the Reporting
Persons, the other persons named in Item 2 of the Schedule 13D, is a party to
any contract, arrangement, understanding or relationship with respect to any
convertible notes of the Issuer, including but not limited to the transfer or
voting of any securities of the Issuer, finder's fees, joint ventures, loan or
option arrangements, puts or calls, guarantees of profits, division of profits
or loss, or the giving or withholding of proxies, except (i) as previously
disclosed, (ii) as noted above, BLUM L.P. has voting and investment power of
the shares held by it for the benefit of The Common Fund, or (iii) with
respect to the Convertible Notes.
Item 7. Material to be Filed as Exhibits
-----------------------------------------
Exhibit A Joint Filing Undertaking.
CUSIP NO. 743168106 SCHEDULE 13D Page 10 of 11
SIGNATURES
After reasonable inquiry and to the best of our knowledge and belief, the
undersigned certify that the information set forth in this statement is true,
complete and correct.
Dated: November 26, 2001
RICHARD C. BLUM & ASSOCIATES, INC. BLUM CAPITAL PARTNERS, L.P.
By Richard C. Blum & Associates, Inc.
its general partner
By /s/ Murray A. Indick By /s/ Murray A. Indick
------------------------------- -----------------------------------
Murray A. Indick Murray A. Indick
Partner and General Counsel Partner and General Counsel
RCBA GP, L.L.C. /s/ Murray A. Indick
---------------------------------------
RICHARD C. BLUM
By /s/ Murray A. Indick By Murray A. Indick, Attorney-in-Fact
-------------------------------
Murray A. Indick, Member
BLUM STRATEGIC GP II, L.L.C.
By /s/ Murray A. Indick
----------------------------
Murray A. Indick, Member
CUSIP NO. 743168106 SCHEDULE 13D Page 11 of 11
Exhibit A
JOINT FILING UNDERTAKING
The undersigned, being duly authorized thereunto, hereby execute this
agreement as an exhibit to this Schedule 13D to evidence the agreement of the
below-named parties, in accordance with the rules promulgated pursuant to the
Securities Exchange Act of 1934, to file this Schedule jointly on behalf of
each such party.
Dated: November 26, 2001
RICHARD C. BLUM & ASSOCIATES, INC. BLUM CAPITAL PARTNERS, L.P.
By Richard C. Blum & Associates, Inc.
its general partner
By /s/ Murray A. Indick By /s/ Murray A. Indick
------------------------------- -----------------------------------
Murray A. Indick Murray A. Indick
Partner and General Counsel Partner and General Counsel
RCBA GP, L.L.C. /s/ Murray A. Indick
---------------------------------------
RICHARD C. BLUM
By /s/ Murray A. Indick By Murray A. Indick, Attorney-in-Fact
-------------------------------
Murray A. Indick, Member
BLUM STRATEGIC GP II, L.L.C.
By /s/ Murray A. Indick
----------------------------
Murray A. Indick, Member