UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
SCHEDULE 13D
(Amendment No. 7)
Under the Securities Exchange Act of 1934
PRG-SCHULTZ INTERNATIONAL, INC.
------------------------------------------
(Name of Issuer)
COMMON STOCK
-------------------------------------
(Title of Class of Securities)
69357C107
---------
(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)
September 19, 2002
-----------------
(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 12
CUSIP NO. 69357C107 SCHEDULE 13D Page 2 of 12
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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 15,607,908**
BENEFICIALLY
OWNED BY EACH -----------------------------------------------------------
PERSON WITH 9. SOLE DISPOSITIVE POWER -0-
-----------------------------------------------------------
10. SHARED DISPOSITIVE POWER 15,607,908**
------------------------------------------------------------------------------
11. AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON 15,607,908**
------------------------------------------------------------------------------
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) 22.4%**
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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. 69357C107 SCHEDULE 13D Page 3 of 12
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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) [ ]
------------------------------------------------------------------------------
6. CITIZENSHIP OR PLACE OF ORGANIZATION California
------------------------------------------------------------------------------
7. SOLE VOTING POWER -0-
NUMBER OF -----------------------------------------------------------
SHARES 8. SHARED VOTING POWER 15,607,908**
BENEFICIALLY
OWNED BY EACH -----------------------------------------------------------
PERSON WITH 9. SOLE DISPOSITIVE POWER -0-
-----------------------------------------------------------
10. SHARED DISPOSITIVE POWER 15,607,908**
------------------------------------------------------------------------------
11. AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON 15,607,908**
------------------------------------------------------------------------------
12. CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
CERTAIN SHARES [ ]
------------------------------------------------------------------------------
13. PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) 22.4%**
------------------------------------------------------------------------------
14. TYPE OF REPORTING PERSON CO
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** See Item 5
*SEE INSTRUCTIONS BEFORE FILLING OUT!
CUSIP NO. 69357C107 SCHEDULE 13D Page 4 of 12
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1. NAME OF REPORTING PERSON BLUM STRATEGIC 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 15,607,908**
BENEFICIALLY
OWNED BY EACH -----------------------------------------------------------
PERSON WITH 9. SOLE DISPOSITIVE POWER -0-
-----------------------------------------------------------
10. SHARED DISPOSITIVE POWER 15,607,908**
------------------------------------------------------------------------------
11. AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON 15,607,908**
------------------------------------------------------------------------------
12. CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
CERTAIN SHARES [ ]
------------------------------------------------------------------------------
13. PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) 22.4%**
------------------------------------------------------------------------------
14. TYPE OF REPORTING PERSON OO (Limited Liability Company)
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** See Item 5
*SEE INSTRUCTIONS BEFORE FILLING OUT!
CUSIP NO. 69357C107 SCHEDULE 13D Page 5 of 12
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1. NAME OF REPORTING PERSON BLUM STRATEGIC PARTNERS II, L.P.
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON 94-3395151
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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
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7. SOLE VOTING POWER -0-
NUMBER OF -----------------------------------------------------------
SHARES 8. SHARED VOTING POWER 15,607,908**
BENEFICIALLY
OWNED BY EACH -----------------------------------------------------------
PERSON WITH 9. SOLE DISPOSITIVE POWER -0-
-----------------------------------------------------------
10. SHARED DISPOSITIVE POWER 15,607,908**
------------------------------------------------------------------------------
11. AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON 15,607,908**
------------------------------------------------------------------------------
12. CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
CERTAIN SHARES [ ]
------------------------------------------------------------------------------
13. PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) 22.4%**
------------------------------------------------------------------------------
14. TYPE OF REPORTING PERSON PN
------------------------------------------------------------------------------
** See Item 5
*SEE INSTRUCTIONS BEFORE FILLING OUT!
CUSIP NO. 69357C107 SCHEDULE 13D Page 6 of 12
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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
------------------------------------------------------------------------------
2. CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) [x]
(b) [x]
------------------------------------------------------------------------------
3. SEC USE ONLY
------------------------------------------------------------------------------
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 15,607,908**
BENEFICIALLY
OWNED BY EACH -----------------------------------------------------------
PERSON WITH 9. SOLE DISPOSITIVE POWER -0-
-----------------------------------------------------------
10. SHARED DISPOSITIVE POWER 15,607,908**
------------------------------------------------------------------------------
11. AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON 15,607,908**
------------------------------------------------------------------------------
12. CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
CERTAIN SHARES [ ]
------------------------------------------------------------------------------
13. PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) 22.4%**
------------------------------------------------------------------------------
14. TYPE OF REPORTING PERSON OO (Limited Liability Company)
------------------------------------------------------------------------------
** See Item 5
CUSIP NO. 69357C107 SCHEDULE 13D Page 7 of 12
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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
------------------------------------------------------------------------------
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 U.S.A.
------------------------------------------------------------------------------
7. SOLE VOTING POWER -0-
NUMBER OF -----------------------------------------------------------
SHARES 8. SHARED VOTING POWER 15,607,908**
BENEFICIALLY
OWNED BY EACH -----------------------------------------------------------
PERSON WITH 9. SOLE DISPOSITIVE POWER -0-
-----------------------------------------------------------
10. SHARED DISPOSITIVE POWER 15,607,908**
------------------------------------------------------------------------------
11. AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON 15,607,908**
------------------------------------------------------------------------------
12. CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
CERTAIN SHARES [ ]
------------------------------------------------------------------------------
13. PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) 22.4%**
------------------------------------------------------------------------------
14. TYPE OF REPORTING PERSON IN
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** See Item 5
*SEE INSTRUCTIONS BEFORE FILLING OUT!
CUSIP NO. 69357C107 SCHEDULE 13D Page 8 of 12
Item 1. Security and Issuer
----------------------------
This Amendment No. 7 amends the Statement on Schedule 13D (the "Schedule 13D")
filed with the Securities and Exchange Commission (the "Commission") on
September 5, 2002 by Blum Capital Partners, L.P., a California limited
partnership, ("Blum L.P."); Richard C. Blum & Associates, Inc., a California
corporation ("RCBA Inc."); Blum Strategic GP, L.L.C., a Delaware limited
liability company ("Blum GP"); Blum Strategic GP II, L.L.C., a Delaware
limited liability company ("Blum GP II"); Blum Strategic Partners II, L.P., a
Delaware limited partnership ("Blum Strategic II"); and Richard C. Blum, the
Chairman and a substantial shareholder of RCBA Inc. and a managing member of
Blum GP and Blum GP II (collectively, the "Reporting Persons"). This
amendment to the Schedule 13D relates to the sale of shares of Common Stock of
PRG-Schultz International, Inc., a Georgia corporation (the "Issuer") in a
privately-negotiated transaction. 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 the Schedule 13D are hereby
made. Unless otherwise defined herein, all capitalized terms shall have the
meanings ascribed to them in the Schedule 13D.
Item 4. Purpose of the Transaction
-----------------------------------
Item 4 of the Schedule 13D is hereby amended to add the following additional
information:
On September 19, 2002, Blum Strategic II and one if its affiliates sold 28,670
shares, at $8.72 per share, of the Issuer's Common Stock to Squam Lake
Investors V, L.P., Waban Investors I, L.P. and Sunapee Securities, Inc., in a
privately negotiated transaction. Executed copies of the transaction documents
are attached hereto as Exhibit II and Exhibit III and incorporated by reference
herein. The sale was contemplated as part of the transactions previously
reported on Amendment No. 5 and Amendment No. 6.
Item 5. Interest in Securities of the Issuer
---------------------------------------------
Item 5 of the Schedule 13D is hereby amended as follows:
(a),(b) According to the Issuer's most recent Form 10-Q, there were 64,571,944
shares of Common Stock issued and outstanding as of July 31, 2002.
CUSIP NO. 69357C107 SCHEDULE 13D Page 9 of 12
Based on such information, after taking into account the transactions
described in Item 5(c) below, the Reporting Persons report direct holdings as
follows:
(i) Blum L.P. and RCBA Inc. report holdings of 1,756,400 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
2.7% of the outstanding shares of the Common Stock; (ii) Blum 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 II reports
holdings of 7,000,880 shares of the Common Stock on behalf of the limited
partnership for which it serves as the general partner, which represents 10.8%
of the outstanding shares of the Common Stock; and (iv) Mr. Blum reports the
aggregate of these shares for a total of 8,874,980 shares of the Common Stock,
which represents 13.7% of the outstanding shares of the Common Stock.
In addition, because Blum L.P. has voting and investment power with respect to
118,800 shares that are legally owned by The Common Fund for the account of
its Multi-Strategy Equity Fund ("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., Blum GP and Blum GP II. The Reporting Persons 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 8,993,780 shares of the Common
Stock, which is 13.9% 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 Blum GP and Blum GP II have voting and investment power.
In the event that the Reporting Persons converted the Convertible Notes into
Common Stock (see the Schedule 13D Amendment Number 2, filed by the Reporting
Persons on December 5, 2001), the Reporting Persons would be deemed to have
beneficial ownership of 14,161,740 shares, and the Issuer would be deemed to
have 69,739,904 shares issued and outstanding. The Reporting Persons would
thus be deemed to have beneficial ownership of 20.3% of the Common Stock, as
follows:
(i) Blum L.P. and RCBA Inc. would be deemed to have beneficial
ownership of 4,986,375 shares, which represents 7.2% on an as converted basis;
(ii) Blum GP II would be deemed to have beneficial ownership of
8,938,865 shares, which represents 12.8% on an as converted basis;
(iii) Blum GP would be deemed to have beneficial ownership of 117,700
shares, which represents 0.2% on an as converted basis; and
(iv) Mr. Blum might be deemed to have beneficial ownership of
14,161,740 shares, which represents 20.3% on an as converted basis.
CUSIP NO. 69357C107 SCHEDULE 13D Page 10 of 12
In addition, assuming that the Reporting Persons converted the Convertible
Notes into Common Stock and that they acquired all the shares subject to the
put/call arrangement contained in the Secured Promissory Note, the Reporting
Persons would be deemed to have beneficial ownership of 15,607,908 shares, and
the Issuer would be deemed to have 69,739,904 shares issued and outstanding.
The Reporting Persons would thus be deemed to have beneficial ownership of
22.4% of the Common Stock, as follows:
(i) Blum L.P. and RCBA Inc. would be deemed to have beneficial
ownership of 4,986,375 shares, which represents 7.2% on an as converted basis;
(ii) Blum GP II would be deemed to have beneficial ownership of
10,385,033 shares, which represents 14.9% on an as converted basis;
(iii) Blum GP would be deemed to have beneficial ownership of 117,700
shares, which represents 0.2% on an as converted basis; and
(iv) Mr. Blum might be deemed to have beneficial ownership of
15,607,908 shares, which represents 22.4% on an as converted basis.
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., or
any of the managing members and members of Blum GP and Blum GP II, is, for any
purpose, the beneficial owner of any of the securities that are beneficially
owned by RCBA Inc., Blum GP or Blum GP II, except to the extent of any
pecuniary interest therein.
(c) There were no other reportable transactions other than the transaction
described in Item 4 above.
(d) and (e) Not applicable.
Item 6. Contracts, Arrangements, Understandings or Relationships with Respect
to Securities of the Issuer
------------------------------------------------------------------------------
Item 6 to Schedule 13D is hereby amended to add the following information:
On September 19, 2002, Blum Strategic II and one of its affiliates entered
into an agreement (the "Assignment and Assumption Agreement" attached hereto
as Exhibit II) with Squam Lake Investors V, L.P., Waban Investors I, L.P. and
Sunapee Securities, Inc.
As described in Item 4 above, Blum Strategic II and one of its affiliates
entered into an agreement (the "Joinder Agreement" attached hereto as Exhibit
III) with the Issuer, Squam Lake Investors V, L.P., Waban Investors I, L.P.
and Sunapee Securities, Inc.
Item 7. Material to be Filed as Exhibits
-----------------------------------------
Exhibit I Joint Filing Undertaking
Exhibit II Assignment and Assumption Agreement
Exhibit III Joinder Agreement
CUSIP NO. 69357C107 SCHEDULE 13D Page 11 of 12
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: September 23, 2002
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, General Counsel Partner, General Counsel
and Secretary and Secretary
BLUM STRATEGIC GP, L.L.C. RICHARD C. BLUM
By /s/ Murray A. Indick /s/ Murray A. Indick
------------------------------- ---------------------------------------
Murray A. Indick, Member By Murray A. Indick, Attorney-in-Fact
BLUM STRATEGIC GP II, L.L.C. BLUM STRATEGIC PARTNERS II, L.P.
By: Blum Strategic GP II, L.L.C.,
its General Partner
By /s/ Murray A. Indick By /s/ Murray A. Indick
---------------------------- ----------------------------
Murray A. Indick, Member Murray A. Indick, Member
CUSIP NO. 69357C107 SCHEDULE 13D Page 12 of 12
Exhibit I
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: September 23, 2002
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, General Counsel Partner, General Counsel
and Secretary and Secretary
BLUM STRATEGIC GP, L.L.C. RICHARD C. BLUM
By /s/ Murray A. Indick /s/ Murray A. Indick
------------------------------- ---------------------------------------
Murray A. Indick, Member By Murray A. Indick, Attorney-in-Fact
BLUM STRATEGIC GP II, L.L.C. BLUM STRATEGIC PARTNERS II, L.P.
By: Blum Strategic GP II, L.L.C.,
its General Partner
By /s/ Murray A. Indick By /s/ Murray A. Indick
---------------------------- -----------------------------
Murray A. Indick, Member Murray A. Indick, Member