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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
SCHEDULE 13D/A
UNDER THE SECURITIES EXCHANGE ACT OF 1934
(AMENDMENT NO. 1)
ARCH CAPITAL GROUP LTD.
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(Name of Issuer)
COMMON SHARES, PAR VALUE $0.01 PER SHARE
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(Title of Class of Securities)
011576290
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(CUSIP Number)
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RICHARD M. LEVINE, ESQ.
HELLMAN & FRIEDMAN LLC
ONE MARITIME PLAZA, SUITE 1200
SAN FRANCISCO, CALIFORNIA 94111
(415) 788-5111
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(Name, Address and Telephone Number of Person Authorized
to Receive Notices and Communications)
WITH A COPY TO:
\
PATRICIA A. VLAHAKIS, ESQ.
WACHTELL, LIPTON, ROSEN & KATZ
51 WEST 52ND STREET
NEW YORK, NEW YORK 10019
(212) 403-1000
SEPTEMBER 19, 2002
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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: [_].
Page 1 of 11 Pages
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CUSIP No. 011576290 SCHEDULE 13D Page 2 of 11 Pages
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1 NAME OF REPORTING PERSON
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS
HFCP IV (BERMUDA), L.P.
I.R.S. IDENTIFICATION NO. 94-3410224
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2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP
(a) |_|
(b) |X|
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3 SEC USE ONLY |_|
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4 SOURCE OF FUNDS
WC
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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
BERMUDA
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7
SOLE VOTING POWER
NUMBER OF 9,589,238*
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SHARES 8
SHARED VOTING POWER
BENEFICIALLY -0-
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OWNED BY 9
SOLE DISPOSITIVE POWER
EACH 9,589,238*
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REPORTING 10
SHARED DISPOSITIVE POWER
PERSON WITH -0-
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11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
9,589,238*
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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)
28.5%+
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14 TYPE OF REPORTING PERSON
PN
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--------------------
* Assumes full conversion of all Preference Shares beneficially owned by such
Reporting Person into Common Shares and the full exercise of all options to
purchase Common Shares beneficially owned by such Reporting Person.
+ Gives effect to the new issuance of Common Shares upon the full conversion of
all Preference Shares, and the full exercise of all options, beneficially
owned by such Reporting Person.
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CUSIP No. 011576290 SCHEDULE 13D Page 3 of 11 Pages
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1 NAME OF REPORTING PERSON
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS
H&F INTERNATIONAL PARTNERS IV-A (BERMUDA), L.P.
I.R.S. IDENTIFICATION NO. 94-3410226
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2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP
(a) |_|
(b) |X|
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3 SEC USE ONLY |_|
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4 SOURCE OF FUNDS
WC
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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
BERMUDA
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7
SOLE VOTING POWER
NUMBER OF 1,573,853*
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SHARES 8
SHARED VOTING POWER
BENEFICIALLY -0-
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OWNED BY 9
SOLE DISPOSITIVE POWER
EACH 1,573,853*
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REPORTING 10
SHARED DISPOSITIVE POWER
PERSON WITH -0-
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11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
1,573,853*
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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)
6.0%+
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14 TYPE OF REPORTING PERSON
PN
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--------------------
* Assumes full conversion of all Preference Shares beneficially owned by such
Reporting Person into Common Shares and the full exercise of all options to
purchase Common Shares beneficially owned by such Reporting Person.
+ Gives effect to the new issuance of Common Shares upon the full conversion of
all Preference Shares, and the full exercise of all options, beneficially
owned by such Reporting Person.
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CUSIP No. 011576290 SCHEDULE 13D Page 4 of 11 Pages
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1 NAME OF REPORTING PERSON
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS
H&F INTERNATIONAL PARTNERS IV-B (BERMUDA), L.P.
I.R.S. IDENTIFICATION NO. 94-3410228
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2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP
(a) |_|
(b) |X|
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3 SEC USE ONLY |_|
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4 SOURCE OF FUNDS
WC
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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
BERMUDA
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7
SOLE VOTING POWER
NUMBER OF 519,901*
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SHARES 8
SHARED VOTING POWER
BENEFICIALLY -0-
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OWNED BY 9
SOLE DISPOSITIVE POWER
EACH 519,901*
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REPORTING 10
SHARED DISPOSITIVE POWER
PERSON WITH -0-
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11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
519,901*
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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)
2.1%+
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14 TYPE OF REPORTING PERSON
PN
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--------------------
* Assumes full conversion of all Preference Shares beneficially owned by such
Reporting Person into Common Shares and the full exercise of all options to
purchase Common Shares beneficially owned by such Reporting Person.
+ Gives effect to the new issuance of Common Shares upon the full conversion of
all Preference Shares, and the full exercise of all options, beneficially
owned by such Reporting Person.
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CUSIP No. 011576290 SCHEDULE 13D Page 5 of 11 Pages
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1 NAME OF REPORTING PERSON
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS
H&F EXECUTIVE FUND IV (BERMUDA), L.P.
I.R.S. IDENTIFICATION NO. 94-3410229
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2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP
(a) |_|
(b) |X|
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3 SEC USE ONLY |_|
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4 SOURCE OF FUNDS
WC
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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
BERMUDA
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7
SOLE VOTING POWER
NUMBER OF 216,123*
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SHARES 8
SHARED VOTING POWER
BENEFICIALLY -0-
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OWNED BY 9
SOLE DISPOSITIVE POWER
EACH 216,123*
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REPORTING 10
SHARED DISPOSITIVE POWER
PERSON WITH -0-
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11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
216,123*
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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)
0.9%+
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14 TYPE OF REPORTING PERSON
PN
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--------------------
* Assumes full conversion of all Preference Shares beneficially owned by such
Reporting Person into Common Shares and the full exercise of all options to
purchase Common Shares beneficially owned by such Reporting Person.
+ Gives effect to the new issuance of Common Shares upon the full conversion of
all Preference Shares, and the full exercise of all options, beneficially
owned by such Reporting Person.
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CUSIP No. 011576290 SCHEDULE 13D Page 6 of 11 Pages
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1 NAME OF REPORTING PERSON
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS
H&F INVESTORS IV (BERMUDA), L.P.
I.R.S. IDENTIFICATION NO. 94-3410230
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2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP
(a) |_|
(b) |X|
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3 SEC USE ONLY |_|
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4 SOURCE OF FUNDS
WC
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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
BERMUDA
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7
SOLE VOTING POWER
NUMBER OF 11,899,115*
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SHARES 8
SHARED VOTING POWER
BENEFICIALLY -0-
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OWNED BY 9
SOLE DISPOSITIVE POWER
EACH 11,899,115*
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REPORTING 10
SHARED DISPOSITIVE POWER
PERSON WITH -0-
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11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
11,899,115*
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12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN
SHARES |_|
--------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
33.3%+
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14 TYPE OF REPORTING PERSON
PN
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--------------------
* Assumes full conversion of all Preference Shares beneficially owned by such
Reporting Person into Common Shares and the full exercise of all options to
purchase Common Shares beneficially owned by such Reporting Person.
+ Gives effect to the new issuance of Common Shares upon the full conversion of
all Preference Shares, and the full exercise of all options, beneficially
owned by such Reporting Person.
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CUSIP No. 011576290 SCHEDULE 13D Page 7 of 11 Pages
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1 NAME OF REPORTING PERSON
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS
H&F CORPORATE INVESTORS IV (BERMUDA) LTD.
I.R.S. IDENTIFICATION NO. 94-3410238
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2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP
(a) |_|
(b) |X|
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3 SEC USE ONLY |_|
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4 SOURCE OF FUNDS
WC
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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
BERMUDA
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7
SOLE VOTING POWER
NUMBER OF 11,899,115*
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SHARES 8
SHARED VOTING POWER
BENEFICIALLY -0-
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OWNED BY 9
SOLE DISPOSITIVE POWER
EACH 11,899,115*
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REPORTING 10
SHARED DISPOSITIVE POWER
PERSON WITH -0-
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11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
11,899,115*
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12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN
SHARES |_|
--------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
33.3%+
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14 TYPE OF REPORTING PERSON
CO
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--------------------
* Assumes full conversion of all Preference Shares beneficially owned by such
Reporting Person into Common Shares and the full exercise of all options to
purchase Common Shares beneficially owned by such Reporting Person.
+ Gives effect to the new issuance of Common Shares upon the full conversion of
all Preference Shares, and the full exercise of all options, beneficially
owned by such Reporting Person.
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CUSIP No. 011576290 SCHEDULE 13D Page 8 of 11 Pages
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Reference is made to the Statement on Schedule 13D (the "Schedule
13D") filed on November 30, 2001 on behalf of HFCP IV (Bermuda), L.P., a limited
partnership organized under the laws of Bermuda ("HFCP IV Bermuda"), H&F
International Partners IV-A (Bermuda), L.P., a limited partnership organized
under the laws of Bermuda ("HFIP IV-A Bermuda"), H&F International Partners IV-B
(Bermuda), L.P., a limited partnership organized under the laws of Bermuda
("HFIP IV-B Bermuda"), H&F Executive Fund IV (Bermuda), L.P., a limited
partnership organized under the laws of Bermuda ("HFEF IV Bermuda", and together
with HFCP IV Bermuda, HFIP IV-A Bermuda and HFIP IV-B Bermuda, the "Investors"),
H&F Investors IV (Bermuda), L.P., a limited partnership organized under the laws
of Bermuda ("HFI IV Bermuda") and H&F Corporate Investors IV (Bermuda) Ltd., a
company organized under the laws of Bermuda ("HFCI IV Bermuda"). The Investors,
together with HFI IV Bermuda and HFCI IV Bermuda are referred to herein as the
"Reporting Persons". All capitalized terms used without definition in this
Amendment No. 1 to Schedule 13D shall have the meanings set forth in the
Schedule 13D.
This Amendment No. 1 to Schedule 13D amends the Schedule 13D as
follows.
ITEM 3. SOURCE AND AMOUNT OF FUNDS OR OTHER CONSIDERATION.
-------------------------------------------------
Item 3 of the Schedule 13D is hereby amended and supplemented by adding the
following:
The total amount of funds required by each Investor to fund to
exercise of the Warrants as described herein was furnished from the committed
capital of such Investor and is set forth below.
Investor Amount
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HFCP IV Bermuda $17,943,500
HFIP IV-A Bermuda $2,945,020
HFIP IV-B Bermuda $972,840
HFEF IV Bermuda $404,420
Total $22,265,780
ITEM 5. INTEREST IN SECURITIES OF THE ISSUER.
------------------------------------
Item 5 of the Schedule 13D is hereby amended and supplemented by adding the
following:
(a) The Reporting Persons beneficially own Common Shares of the Company by
virtue of their ownership of an aggregate of 1,116,977 Common Shares, of
an aggregate of 10,780,038 Preference Shares, which are convertible into
Common Shares as described under Item 4, and of options to purchase an
aggregate of 2,100 Common Shares, which options were issued to John L.
Bunce, Jr. and David Tunnell, each of whom is an affiliate of the
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CUSIP No. 011576290 SCHEDULE 13D Page 9 of 11 Pages
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Reporting Persons, in consideration of their service as directors of
the issuer, and which options are held for the benefit of the Reporting
Persons. As of September 20, 2002, the Investors collectively beneficially
owned an aggregate of 11,899,115 Common Shares, assuming the full
conversion of the Preference Shares into Common Shares and the full
exercise of the options to purchase Common Shares. By reason of its
relationship with the Investors, under Rule 13d-3 under the Exchange Act,
HFCI IV Bermuda may be deemed to own beneficially all of the Common Shares
that are beneficially owned by the Investors.
Assuming the full conversion of the Preference Shares into Common Shares,
as of September 19, 2002, the 11,899,115 Common Shares collectively
beneficially owned by the Reporting Persons would represent approximately
33.3% of the outstanding Common Shares, after giving effect to the new
issuance of Common Shares upon the full conversion of the Preference Shares
into Common Shares, the full exercise of all options to purchase Common
Shares and upon the exercise of the Warrants described herein and based on
the 23,795,740 Common Shares outstanding as of June 30, 2002 as set forth
in the Company's Form 10-Q for the quarter then ended.
(b) The Investors collectively have beneficial ownership of 11,899,115 Common
Shares, assuming the full conversion of the Preference Shares into Common
Shares. Of these Common Shares, 10,780,038 Common Shares are represented by
10,780,038 Preference Shares, which even if not converted into Common
Shares would in the aggregate be entitled to the voting power equivalent to
10,780,038 Common Shares. Each Investor exercises voting power and
dispositive power over its holdings of such shares through its respective
general partner, which, in turn, acts through its respective general
partner.
(c) On September 19, 2002, the Investors exercised Warrants to purchase an
aggregate of 1,113,289 Common Shares, at a per share price of $20.00 or
$22,265,780 in the aggregate. On September 1, 2002, Messrs. Bunce and
Tunnell were issued an aggregate of 2,148 Common Shares in consideration of
their services as directors of the issuer. Messrs. Bunce and Tunnell hold
these Common Shares for the benefit of the Investors. Except as otherwise
described herein, during the last sixty days there were no transactions
effected by the Reporting Persons or by any of the persons set forth on
Schedule I hereto.
(d) Except as set forth in this Item 5, no person other than each respective
record owner referred to herein of the Common Shares and the Preference
Shares is known to have the right to receive or the power to direct the
receipt of dividends from, or the proceeds from the sale of, such Common
Shares or Preference Shares.
(e) Not applicable.
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CUSIP No. 011576290 SCHEDULE 13D Page 10 of 11 Pages
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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
HFCP IV (BERMUDA), L.P.
By: H&F Investors IV (Bermuda), L.P.,
its General Partner
By: H&F Corporate Investors IV (Bermuda) Ltd.,
its General Partner
By: /s/ Georgia Lee
-----------------------------------
Name: Georgia Lee
Title: Vice President and Treasurer
H&F INTERNATIONAL PARTNERS IV-A (BERMUDA), L.P.
By: H&F Investors IV (Bermuda), L.P.,
its General Partner
By: H&F Corporate Investors IV (Bermuda)
Ltd.,
its General Partner
By: /s/ Georgia Lee
-----------------------------------
Name: Georgia Lee
Title: Vice President and Treasurer
H&F INTERNATIONAL PARTNERS IV-B (BERMUDA), L.P.
By: H&F Investors IV (Bermuda), L.P.,
its General Partner
By: H&F Corporate Investors IV (Bermuda)
Ltd.,
its General Partner
By: /s/ Georgia Lee
-----------------------------------
Name: Georgia Lee
Title: Vice President and Treasurer
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CUSIP No. 011576290 SCHEDULE 13D Page 11 of 11 Pages
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H&F EXECUTIVE FUND IV(BERMUDA), L.P.
By: H&F Investors IV (Bermuda), L.P.,
its General Partner
By: H&F Corporate Investors IV (Bermuda)
Ltd.,
its General Partner
By: /s/ Georgia Lee
-----------------------------------
Name: Georgia Lee
Title: Vice President and Treasurer
H&F INVESTORS IV (BERMUDA), L.P.
By: H&F Corporate Investors IV (Bermuda)
Ltd.,
its General Partner
By: /s/ Georgia Lee
--------------------------------------
Name: Georgia Lee
Title: Vice President and Treasurer
H&F CORPORATE INVESTORS IV (BERMUDA) LTD.
By: /s/ Georgia Lee
--------------------------------------------------
Name: Georgia Lee
Title: Vice President and Treasurer