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SCHEDULE 13D
(AMENDMENT NO. 3)
Under the Securities Exchange Act of 1934
PRG-SCHULTZ INTERNATIONAL, INC.
----------------------------------------------------------------------
(Name of Company)
Common Stock
----------------------------------------------------------------------
(Title of Class of Securities)
69357C107
----------------------------------------------------------------------
(CUSIP Number of Class of Securities)
Andre Weiss, Esq.
----------------------------------------------------------------------
Schulte Roth & Zabel LLP
919 Third Avenue
New York, New York 10022
(212) 756-2431
----------------------------------------------------------------------
(Name, Address and Telephone Number of Person
Authorized to Receive Notices and Communications)
December 15, 2005
----------------------------------------------------------------------
(Date of Event which Requires
Filing of this Schedule)
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).
SCHEDULE 13D
-------------------------------------------------------------------------------
CUSIP NO. 69357C107 PAGE 2 OF 10 PAGES
-------------------------------------------------------------------------------
-------- ---------------------------------------------------------------------
1 NAME OF REPORTING PERSON
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)
Blum Capital Partners, L.P. I.R.S. ID: 94-3205364
--------- ---------------------------------------------------------------------
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 PROCEEDING IS REQUIRED PURSUANT TO
ITEMS 2(d) or 2(e) / /
--------- ---------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
California
--------------------- --------- -----------------------------------------------
7 SOLE VOTING POWER
0
--------- -----------------------------------------------
NUMBER OF 8 SHARED VOTING POWER
SHARES
BENEFICIALLY 13,939,012 shares (including 4,651,939 shares
OWNED BY issuable upon conversion of notes and payable
EACH as shares of interest under the notes) (see
REPORTING Item 5)
PERSON WITH -------- -----------------------------------------------
9 SOLE DISPOSITIVE POWER
0
--------- -----------------------------------------------
10 SHARED DEPOSITIVE POWER
13,939,012 shares (including 4,651,939 shares
issuable upon conversion of notes and payable
as shares of interest under the notes) (see
Item 5)
--------- -------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH PERSON
13,939,012 shares (including 4,651,939 shares issuable upon conversion
of notes and payable as shares of interest under the notes) (see
Item 5)
--------- -------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN
SHARES* / /
--------- -------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) (see Item 5)
17.0%(see Item 5)
--------- -------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
PN, IA
--------- -------------------------------------------------------------------
SCHEDULE 13D
-------------------------------------------------------------------------------
CUSIP NO. 69357C107 PAGE 3 OF 10 PAGES
-------------------------------------------------------------------------------
-------- ---------------------------------------------------------------------
1 NAME OF REPORTING PERSON
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)
Richard C. Blum & Associates, Inc. I.R.S. ID: 94-2967812
--------- ---------------------------------------------------------------------
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 PROCEEDING IS REQUIRED PURSUANT TO
ITEMS 2(d) or 2(e) / /
--------- ---------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
California
--------------------- --------- -----------------------------------------------
7 SOLE VOTING POWER
0
--------- -----------------------------------------------
NUMBER OF 8 SHARED VOTING POWER
SHARES
BENEFICIALLY 13,939,012 shares (including 4,651,939 shares
OWNED BY issuable upon conversion of notes and payable
EACH as shares of interest under the notes) (see
REPORTING Item 5)
PERSON WITH -------- -----------------------------------------------
9 SOLE DISPOSITIVE POWER
0
--------- -----------------------------------------------
10 SHARED DEPOSITIVE POWER
13,939,012 shares (including 4,651,939 shares
issuable upon conversion of notes and payable
as shares of interest under the notes) (see
Item 5)
--------- -------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH PERSON
13,939,012 shares (including 4,651,939 shares issuable upon conversion
of notes and payable as shares of interest under the notes) (see
Item 5)
--------- -------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN
SHARES* / /
--------- -------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) (see Item 5)
17.0%(see Item 5)
--------- -------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
CO
--------- -------------------------------------------------------------------
SCHEDULE 13D
-------------------------------------------------------------------------------
CUSIP NO. 69357C107 PAGE 4 OF 10 PAGES
-------------------------------------------------------------------------------
-------- ---------------------------------------------------------------------
1 NAME OF REPORTING PERSON
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)
Blum Strategic GP, L.L.C. IRS ID: 94-3303831
--------- ---------------------------------------------------------------------
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 PROCEEDING 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 13,939,012 shares (including 4,651,939 shares
OWNED BY issuable upon conversion of notes and payable
EACH as shares of interest under the notes) (see
REPORTING Item 5)
PERSON WITH -------- -----------------------------------------------
9 SHARED DISPOSITIVE POWER
0
--------- -----------------------------------------------
10 SHARED DEPOSITIVE POWER
13,939,012 shares (including 4,651,939 shares
issuable upon conversion of notes and payable
as shares of interest under the notes) (see
Item 5)
--------- -------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH PERSON
13,939,012 shares (including 4,651,939 shares issuable upon conversion
of notes and payable as shares of interest under the notes) (see
Item 5)
--------- -------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN
SHARES* / /
--------- -------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) (see Item 5)
17.0%(see Item 5)
--------- -------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
OO
--------- -------------------------------------------------------------------
SCHEDULE 13D
-------------------------------------------------------------------------------
CUSIP NO. 69357C107 PAGE 5 OF 10 PAGES
-------------------------------------------------------------------------------
-------- ---------------------------------------------------------------------
1 NAME OF REPORTING PERSON
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)
Blum Strategic Partners II, L.P. ID: 94-3395151
--------- ---------------------------------------------------------------------
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 PROCEEDING IS REQUIRED PURSUANT TO
ITEMS 2(d) or 2(e) / /
--------- ---------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
California
--------------------- --------- -----------------------------------------------
7 SOLE VOTING POWER
0
--------- -----------------------------------------------
NUMBER OF 8 SHARED VOTING POWER
SHARES
BENEFICIALLY 13,939,012 shares (including 4,651,939 shares
OWNED BY issuable upon conversion of notes and payable
EACH as shares of interest under the notes) (see
REPORTING Item 5)
PERSON WITH -------- -----------------------------------------------
9 SOLE DISPOSITIVE POWER
0
--------- -----------------------------------------------
10 SHARED DEPOSITIVE POWER
13,939,012 shares (including 4,651,939 shares
issuable upon conversion of notes and payable
as shares of interest under the notes) (see
Item 5)
--------- -------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH PERSON
13,939,012 shares (including 4,651,939 shares issuable upon conversion
of notes and payable as shares of interest under the notes) (see
Item 5)
--------- -------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN
SHARES* / /
--------- -------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) (see Item 5)
17.0%(see Item 5)
--------- -------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
PN
--------- -------------------------------------------------------------------
SCHEDULE 13D
-------------------------------------------------------------------------------
CUSIP NO. 69357C107 PAGE 6 OF 10 PAGES
-------------------------------------------------------------------------------
-------- ---------------------------------------------------------------------
1 NAME OF REPORTING PERSON
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)
Blum Strategic GP II, L.L.C. IRS ID: 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 PROCEEDING 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 13,939,012 shares (including 4,651,939 shares
OWNED BY issuable upon conversion of notes and payable
EACH as shares of interest under the notes) (see
REPORTING Item 5)
PERSON WITH -------- -----------------------------------------------
9 SOLE DISPOSITIVE POWER
0
--------- -----------------------------------------------
10 SHARED DEPOSITIVE POWER
13,939,012 shares (including 4,651,939 shares
issuable upon conversion of notes and payable
as shares of interest under the notes) (see
Item 5)
--------- -------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH PERSON
13,939,012 shares (including 4,651,939 shares issuable upon conversion
of notes and payable as shares of interest under the notes) (see
Item 5)
--------- -------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN
SHARES* / /
--------- -------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) (see Item 5)
17.0%(see Item 5)
--------- -------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
OO
--------- -------------------------------------------------------------------
This Amendment No. 13 amends the Statement on Schedule 13D (the "Schedule 13D")
filed with the Securities and Exchange Commission on September 2, 2003 by Blum
Capital Partners, L.P., a California limited partnership; Richard C. Blum &
Associates, Inc., a California corporation; Blum Strategic GP, L.L.C., a
Delaware limited liability company; Blum Strategic GP II, L.L.C., a Delaware
limited liability company; Blum Strategic Partners II, L.P., a Delaware limited
partnership (collectively, the "Reporting Persons"); and Richard C. Blum. This
amendment to the Schedule 13D relates to the shares of Common Stock (the
"Shares") of PRG-Schultz International, Inc., a Georgia corporation (the
"Company"). 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 Transaction.
Item 4 of the Schedule 13D is hereby supplemented by the following:
On December 15, 2005, certain members of the Ad Hoc Committee entered
into an Amendment to the Commitment Letter with the Company, dated November 28,
2005, as amended on December 9, 2005, and disclosed in the Reporting Persons
previous amendments to this Schedule 13D. A copy of the Amendment to the
Commitment Letter is attached as an exhibit hereto and incorporated into this
Item 4 by reference.
Except as set forth above, the Reporting Persons have no oral or
written agreements, understandings or arrangements with each other or any other
person relating to acquiring, holding, voting or disposing of any securities of
the Company or otherwise with respect to the Company.
Item 6. Contracts, Arrangements, Understandings or Relationships with
Respect to Securities of the Company.
Item 6 of the Schedule 13D is hereby supplemented by the following:
The Amendment to the Commitment Letter is incorporated by reference
into this Item 6.
Item 7. Material to be Filed as Exhibits.
1. Joint Filing Agreement dated December 16, 2005.
2. Amendment to Commitment Letter, dated December 15, 2005 among the Reporting
Persons and the Company.
SIGNATURES
After reasonable inquiry and to the best of his knowledge and belief,
each of the undersigned certifies that the information set forth in this
statement is true, complete and correct.
Dated: December 16, 2005
BLUM CAPITAL PARTNERS, L.P.
By: Richard C. Blum & Associates, Inc.
its General Partner
By: /s/ Gregory D. Hitchan
Name: Gregory D. Hitchan
Title: Counsel and Secretary
RICHARD C. BLUM & ASSOCIATES, INC.
By: /s/ Gregory D. Hitchan
Name: Gregory D. Hitchan
Title: Counsel and Secretary
BLUM STRATEGIC GP, L.L.C.
By: /s/ Gregory D. Hitchan
Name: Gregory D. Hitchan
Title: Member and General Counsel
BLUM STRATEGIC PARTNERS II, L.P.
By: Blum Strategic GP II, L.L.C.,
Its General Partner
By: /s/ Gregory D. Hitchan
Name: Gregory D. Hitchan
Title: Member and General Counsel
BLUM STRATEGIC GP II, L.L.C.
By: /s/ Gregory D. Hitchan
Name: Gregory D. Hitchan
Title: Member and General Counsel
EXHIBIT INDEX
1. Joint Filing Agreement dated December 16, 2005.
2. Amendment to Commitment Letter, dated December 15, 2005 among the Reporting
Persons and the Company.
Exhibit 1
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 as of December 16, 2005
BLUM CAPITAL PARTNERS, L.P.
By: Richard C. Blum & Associates, Inc.
its General Partner
By: /s/ Gregory D. Hitchan
Name: Gregory D. Hitchan
Title: Counsel and Secretary
RICHARD C. BLUM & ASSOCIATES, INC.
By: /s/ Gregory D. Hitchan
Name: Gregory D. Hitchan
Title: Counsel and Secretary
BLUM STRATEGIC GP, L.L.C.
By: /s/ Gregory D. Hitchan
Name: Gregory D. Hitchan
Title: Member and General Counsel
BLUM STRATEGIC PARTNERS II, L.P.
By: Blum Strategic GP II, L.L.C.,
Its General Partner
By: /s/ Gregory D. Hitchan
Name: Gregory D. Hitchan
Title: Member and General Counsel
BLUM STRATEGIC GP II, L.L.C.
By: /s/ Gregory D. Hitchan
Name: Gregory D. Hitchan
Title: Member and General Counsel
Exhibit 2
PETRUS SECURITIES L.P. BLUM STRATEGIC PARTNERS II, L.P.
PARK CENTRAL GLOBAL HUB LIMITED BLUM STRATEGIC PARTNERS II GMBH & CO. KG.
December 15, 2005
PRG-Schultz International, Inc.
600 Galleria Parkway
Suite 100
Atlanta, Georgia 30339
Attention: James B. McCurry
Re: EXTENSION OF COMMITMENT LETTER
Dear Mr. McCurry:
Reference is made to (i) the commitment letter, dated as of November
28, 2005 (as amended by the Amendment to Commitment Letter, dated as of December
9, 2005, the "COMMITMENT LETTER"), addressed to PRG-Schultz International, Inc.
(the "PARENT") by each of Petrus Securities L.P. ("PETRUS"), Parkcentral Global
Hub Limited (together with Petrus, collectively, the "PETRUS ENTITIES"), Blum
Strategic Partners II GmbH & Co. KG. ("BLUM") and Blum Strategic Partners II,
L.P. (together with Blum, collectively, the "BLUM ENTITIES" and, together with
the Petrus Entities, each a "LENDER" and collectively, the "LENDERS") and (ii)
the Term Sheet (as defined in the Commitment Letter). Capitalized terms used
herein shall have the meanings set forth in the Commitment Letter.
The Parent and the Lenders desire to amend the Commitment Letter and
the Term Sheet to extend the effectiveness of the Lenders' commitment until
December 19, 2005, and the Lenders have agreed to extend the commitment period,
upon, and subject to, the terms and conditions hereinafter set forth.
Notwithstanding anything contained in the Commitment Letter and the
Term Sheet, the parties agree that the commitment of the Lenders to provide the
Financing Facility shall expire at 5:00 p.m. (New York City time) on December
19, 2005, unless prior thereto, definitive loan documentation shall have been
agreed to in writing by all parties and the conditions set forth therein shall
have been satisfied (it being understood that the Parent's obligation to pay all
amounts in respect of indemnification and Expenses shall survive termination of
the Commitment Letter).
PRG-Schultz International, Inc.
December 15, 2005
Page 2
Except as expressly set forth in this letter, (i) nothing contained
herein shall be construed in any manner to modify, affect, or impair the
provisions of the Commitment Letter or the Term Sheet and (ii) the Commitment
Letter shall continue in full force and effect.
This letter (i) shall be governed by the law of the State of New York,
(ii) shall be binding upon the parties and their respective successors and
assigns, (iii) may not be relied upon or enforced by any other person or entity,
and (iv) may be signed in multiple counterparts, each of which shall be deemed
an original and all of which together shall constitute one and the same
instrument. If this letter becomes the subject of a dispute, each of the parties
hereto hereby waives trial by jury. This letter may be amended, modified or
waived only in a writing signed by the parties hereto.
Very truly yours,
PRG-Schultz International, Inc.
December 15, 2005
Page 3
--------------------------------------------------------------------------------
/ / /
/ BLUM STRATEGIC PARTNERS II, L.P. / BLUM STRATEGIC PARTNERS II GMBH & /
/ / CO. KG. /
/ / /
/ By: /s/ Jose S. Medeiros / By: /s/ Jose S. Medeiros /
/ ----------------------------- / ---------------------------------/
/ Name: Jose S. Medeiros / Name: Jose S. Medeiros /
/ Title: Partner / Title: Partner /
/ / /
/----------------------------------- / -------------------------------------/
/ / /
/ / /
/ PARKCENTRAL GLOBAL HUB LIMITED / PETRUS SECURITIES L.P. /
/ / /
/ / /
/ By: /s/ Steven Blasnik / By: /s/ Steven Blasnik /
/ ----------------------------- / ---------------------------------/
/ Name: Steven Blasnik / Name: Steven Blasnik /
/ Title: President / Title: President of G.P. /
/ /
--------------------------------------------------------------------------------
Agreed and accepted on this
15 day of December 2005:
PRG-SCHULTZ INTERNATIONAL, INC.
By: /s/ Clinton McKellar, Jr.
-------------------------------
Name: Clinton McKellar, Jr.
Title: Senior Vice President and General Counsel