UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
SCHEDULE 13D
(Amendment No. 9)
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)
August 25, 2003
-----------------
(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. 69357C107 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 14,594,508**
BENEFICIALLY
OWNED BY EACH -----------------------------------------------------------
PERSON WITH 9. SOLE DISPOSITIVE POWER -0-
-----------------------------------------------------------
10. SHARED DISPOSITIVE POWER 14,594,508**
------------------------------------------------------------------------------
11. AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON 14,594,508**
------------------------------------------------------------------------------
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) 21.9**
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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 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) [ ]
------------------------------------------------------------------------------
6. CITIZENSHIP OR PLACE OF ORGANIZATION California
------------------------------------------------------------------------------
7. SOLE VOTING POWER -0-
NUMBER OF -----------------------------------------------------------
SHARES 8. SHARED VOTING POWER 14,594,508**
BENEFICIALLY
OWNED BY EACH -----------------------------------------------------------
PERSON WITH 9. SOLE DISPOSITIVE POWER -0-
-----------------------------------------------------------
10. SHARED DISPOSITIVE POWER 14,594,508**
------------------------------------------------------------------------------
11. AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON 14,594,508**
------------------------------------------------------------------------------
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) 21.9%**
------------------------------------------------------------------------------
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 11
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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 14,594,508**
BENEFICIALLY
OWNED BY EACH -----------------------------------------------------------
PERSON WITH 9. SOLE DISPOSITIVE POWER -0-
-----------------------------------------------------------
10. SHARED DISPOSITIVE POWER 14,594,508**
------------------------------------------------------------------------------
11. AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON 14,594,508**
------------------------------------------------------------------------------
12. CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
CERTAIN SHARES [ ]
------------------------------------------------------------------------------
13. PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) 21.9%**
------------------------------------------------------------------------------
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 11
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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
------------------------------------------------------------------------------
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 14,594,508**
BENEFICIALLY
OWNED BY EACH -----------------------------------------------------------
PERSON WITH 9. SOLE DISPOSITIVE POWER -0-
-----------------------------------------------------------
10. SHARED DISPOSITIVE POWER 14,594,508**
------------------------------------------------------------------------------
11. AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON 14,594,508**
------------------------------------------------------------------------------
12. CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
CERTAIN SHARES [ ]
------------------------------------------------------------------------------
13. PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) 21.9%**
------------------------------------------------------------------------------
14. TYPE OF REPORTING PERSON PN
------------------------------------------------------------------------------
** See Item 5
*SEE INSTRUCTIONS BEFORE FILLING OUT!
CUSIP NO. 69357C107 SCHEDULE 13D Page 6 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
------------------------------------------------------------------------------
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 14,594,508**
BENEFICIALLY
OWNED BY EACH -----------------------------------------------------------
PERSON WITH 9. SOLE DISPOSITIVE POWER -0-
-----------------------------------------------------------
10. SHARED DISPOSITIVE POWER 14,594,508**
------------------------------------------------------------------------------
11. AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON 14,594,508**
------------------------------------------------------------------------------
12. CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
CERTAIN SHARES [ ]
------------------------------------------------------------------------------
13. PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) 21.9%**
------------------------------------------------------------------------------
14. TYPE OF REPORTING PERSON OO (Limited Liability Company)
------------------------------------------------------------------------------
** See Item 5
CUSIP NO. 69357C107 SCHEDULE 13D Page 7 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]
------------------------------------------------------------------------------
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 U.S.A.
------------------------------------------------------------------------------
7. SOLE VOTING POWER -0-
NUMBER OF -----------------------------------------------------------
SHARES 8. SHARED VOTING POWER 14,594,508**
BENEFICIALLY
OWNED BY EACH -----------------------------------------------------------
PERSON WITH 9. SOLE DISPOSITIVE POWER -0-
-----------------------------------------------------------
10. SHARED DISPOSITIVE POWER 14,594,508**
------------------------------------------------------------------------------
11. AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON 14,594,508**
------------------------------------------------------------------------------
12. CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
CERTAIN SHARES [ ]
------------------------------------------------------------------------------
13. PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) 21.9%**
------------------------------------------------------------------------------
14. TYPE OF REPORTING PERSON IN
------------------------------------------------------------------------------
** See Item 5
*SEE INSTRUCTIONS BEFORE FILLING OUT!
CUSIP NO. 69357C107 SCHEDULE 13D Page 8 of 11
Item 1. Security and Issuer
----------------------------
This Amendment No. 9 amends the Statement on Schedule 13D (the "Schedule 13D")
filed with the Securities and Exchange Commission (the "Commission") on May
23, 2003 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 shares of Common Stock of PRG-Schultz International, Inc.,
a Georgia corporation (the "Issuer"). The principal executive office and
mailing address of the Issuer is 600 Galleria Parkway, Suite 100, Atlanta,
Georgia 30339-5986. 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 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 61,547,453
shares of Common Stock issued and outstanding as of July 31, 2003. Based on
such information, after taking into account the transactions described in Item
5(c) below, the Reporting Persons report beneficial ownership of the following
shares of Common Stock: (i) 861,800 shares of the Common Stock held by Blum
L.P. and RCBA Inc. on behalf of the limited partnerships for which Blum L.P.
serves as the general partner, or on behalf of an entity for which Blum L.P.
serves as investment advisor, which represents 1.4% of the outstanding shares
of the Common Stock; (ii) 117,700 shares of the Common Stock held by Blum GP
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;
and (iii) 8,447,048 shares of the Common Stock held by Blum GP II on behalf of
the limited partnership for which it serves as the general partner and on
behalf of the limited partnership for which it serves as the managing limited
partner, which represents 13.7% of the outstanding shares of the Common Stock.
Voting and investment power concerning the above shares are held solely by
Blum L.P., Blum GP and Blum GP II. The Reporting Persons therefore may be
deemed to be members in a group, in which case the group would be deemed to
have beneficial ownership of an aggregate of 9,426,548 shares of the Common
Stock, which is 15.3% 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.
CUSIP NO. 69357C107 SCHEDULE 13D Page 9 of 11
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 14,594,508 shares, and the Issuer would be deemed to
have 66,715,413 shares issued and outstanding. The Reporting Persons would
thus be deemed to have beneficial ownership of 21.9% of the Common Stock, as
follows:
(i) Blum L.P. and RCBA Inc. would be deemed to have beneficial
ownership of 4,091,775 shares, which represents 6.1% on an as converted basis;
(ii) Blum GP II would be deemed to have beneficial ownership of
10,385,033 shares, which represents 15.6% 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
14,594,508 shares, which represents 21.9% 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.
(c) The reduction in holdings includes all shares legally owned by Carpenters
Pension Trust for Southern California, all shares legally owned by United
Brotherhood of Carpenters Pension Plan and all shares legally owned by The
Common Fund for the account of its Multi-Strategy Equity Fund (collectively,
the "Investment Advisory Clients") for which Blum L.P. maintained voting and
investment power, and whose shares were therefore deemed to be beneficially
owned by Blum L.P. During the last 60 days, the Reporting Persons distributed
to the Investment Advisory Clients the shares of the Common Stock shown below:
Entity Trade Date Shares Price/Share
------ ---------- ------------ ------------
Investment Advisory Clients, 08-25-03 1,013,400 -0-
which Blum L.P served as
investment advisor.
(d) and (e) Not applicable.
Item 6. Contracts, Arrangements, Understandings or Relationships with Respect
to Securities of the Issuer
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CUSIP NO. 69357C107 SCHEDULE 13D Page 10 of 11
Item 6 to Schedule 13D is hereby amended to add the following information:
None of the Reporting Persons or, to the best knowledge of the Reporting
Persons, is a party to any contract, arrangement, understanding or
relationship with respect to any securities 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 as previously disclosed.
Item 7. Material to be Filed as Exhibits
-----------------------------------------
Exhibit I Joint Filing Undertaking
CUSIP NO. 69357C107 SCHEDULE 13D Page 11 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: September 2, 2003
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 1 of 1
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 2, 2003
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