SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
SCHEDULE 13D
Under the Securities Exchange Act of 1934
(Amendment No. 7)*
Rare Medium Group, Inc.
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(Name of Issuer)
Common Stock, par value $0.01 per share
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(Title of Class of Securities)
449238203
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(CUSIP Number)
Paul A. Belvin
Akin, Gump, Strauss, Hauer & Feld, L.L.P.
1333 New Hampshire Avenue N.W.
Washington, D.C. 20036
(202) 887-4000
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(Name, Address and Telephone Number of Person Authorized to Receive Notices and
Communications)
July 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 which 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. Seess.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. 449238203 Page 2 of 11 Pages
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1. Names of Reporting Persons.
I.R.S. Identification Nos. of above persons (entities only).
Apollo Investment Fund IV, L.P.
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2. Check the Appropriate Box if a Member of a Group (See Instructions)
(a) [X]
(b) [_]
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3. SEC Use Only
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4. Source of Funds (See Instructions) OO
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5. Check 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 3,222,023
Number of Shares|---------------------------------------------------------------
Bene-ficially |8. Shared Voting Power 4,681,129
Owned by Each |---------------------------------------------------------------
Reporting |9. Sole Dispositive Power 11,755,168 (See footnote below*)
Person With |---------------------------------------------------------------
|10. Shared Dispositive Power 13,671,899 (See footnote below*)
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11. Aggregate Amount Beneficially Owned by Each Reporting Person
13,671,899 shares of Common Stock (See footnote below*)
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12. Check if the Aggregate Amount in Row (11) Excludes Certain Shares (See
Instructions) [_]
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13. Percent of Class Represented by Amount in Row (11) 74.1%
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14. Type of Reporting Person (See Instructions) PN
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(*) Includes Non-Voting Stock acquired by the Initial Reporting Persons.
See Item 4 in Amendment No.7 to this Schedule 13D.
SCHEDULE 13D
CUSIP No. 449238203 Page 3 of 11 Pages
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1. Names of Reporting Persons.
I.R.S. Identification Nos. of above persons (entities only).
Apollo Overseas Partners IV, L.P.
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2. Check the Appropriate Box if a Member of a Group (See Instructions)
(a) [X]
(b) [_]
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3. SEC Use Only
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4. Source of Funds (See Instructions) OO
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5. Check 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 172,793
Number of Shares|---------------------------------------------------------------
Bene-ficially |8. Shared Voting Power 4,681,129
Owned by Each |---------------------------------------------------------------
Reporting |9. Sole Dispositive Power 630,419 (See footnote below*)
Person With |---------------------------------------------------------------
|10. Shared Dispositive Power 13,671,899 (See footnote below*)
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11. Aggregate Amount Beneficially Owned by Each Reporting Person
13,671,899 shares of Common Stock (See footnote below*)
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12. Check if the Aggregate Amount in Row (11) Excludes Certain Shares (See
Instructions) [_]
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13. Percent of Class Represented by Amount in Row (11) 74.1%
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14. Type of Reporting Person (See Instructions) PN
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(*) Includes Non-Voting Stock acquired by the Initial Reporting Persons.
See Item 4 in Amendment No.7 to this Schedule 13D.
SCHEDULE 13D
CUSIP No. 449238203 Page 4 of 11 Pages
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1. Names of Reporting Persons.
I.R.S. Identification Nos. of above persons (entities only).
AIF IV/RRRR LLC
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2. Check the Appropriate Box if a Member of a Group (See Instructions)
(a) [X]
(b) [_]
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3. SEC Use Only
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4. Source of Funds (See Instructions) OO
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5. Check 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 812,345
Number of Shares|---------------------------------------------------------------
Bene-ficially |8. Shared Voting Power 4,681,129
Owned by Each |---------------------------------------------------------------
Reporting |9. Sole Dispositive Power 812,345
Person With |---------------------------------------------------------------
|10. Shared Dispositive Power 13,671,899 (See footnote below*)
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11. Aggregate Amount Beneficially Owned by Each Reporting Person
13,671,899 shares of Common Stock (See footnote below*)
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12. Check if the Aggregate Amount in Row (11) Excludes Certain Shares (See
Instructions) [_]
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13. Percent of Class Represented by Amount in Row (11) 74.1%
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14. Type of Reporting Person (See Instructions) OO
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(*) Includes Non-Voting Stock acquired by the Initial Reporting Persons.
See Item 4 in Amendment No.7 to this Schedule 13D.
SCHEDULE 13D
CUSIP No. 449238203 Page 5 of 11 Pages
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1. Names of Reporting Persons.
I.R.S. Identification Nos. of above persons (entities only).
Apollo Advisors IV, L.P.
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2. Check the Appropriate Box if a Member of a Group (See Instructions)
(a) [X]
(b) [_]
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3. SEC Use Only
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4. Source of Funds (See Instructions)
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5. Check 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|---------------------------------------------------------------
Bene-ficially |8. Shared Voting Power 4,681,129
Owned by Each |---------------------------------------------------------------
Reporting |9. Sole Dispositive Power 0
Person With |---------------------------------------------------------------
|10. Shared Dispositive Power 13,671,899 (See footnote below*)
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11. Aggregate Amount Beneficially Owned by Each Reporting Person
13,671,899 shares of Common Stock (See footnote below*)
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12. Check if the Aggregate Amount in Row (11) Excludes Certain Shares (See
Instructions) [_]
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13. Percent of Class Represented by Amount in Row (11) 74.1%
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14. Type of Reporting Person (See Instructions) PN
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(*) Includes Non-Voting Stock acquired by the Initial Reporting Persons.
See Item 4 in Amendment No.7 to this Schedule 13D.
SCHEDULE 13D
CUSIP No. 449238203 Page 6 of 11 Pages
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1. Names of Reporting Persons.
I.R.S. Identification Nos. of above persons (entities only).
Apollo Management IV, L.P.
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2. Check the Appropriate Box if a Member of a Group (See Instructions)
(a) [X]
(b) [_]
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3. SEC Use Only
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4. Source of Funds (See Instructions)
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5. Check 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|---------------------------------------------------------------
Bene-ficially |8. Shared Voting Power 4,681,129
Owned by Each |---------------------------------------------------------------
Reporting |9. Sole Dispositive Power 0
Person With |---------------------------------------------------------------
|10. Shared Dispositive Power 13,671,859 (See footnote below*)
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11. Aggregate Amount Beneficially Owned by Each Reporting Person
13,671,899 shares of Common Stock (See footnote below*)
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12. Check if the Aggregate Amount in Row (11) Excludes Certain Shares (See
Instructions) [_]
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13. Percent of Class Represented by Amount in Row (11) 74.1%
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14. Type of Reporting Person (See Instructions) PN
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(*) Includes Non-Voting Stock acquired by the Initial Reporting Persons.
See Item 4 in Amendment No.7 to this Schedule 13D.
SCHEDULE 13D
CUSIP No. 449238203 Page 7 of 11 Pages
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1. Names of Reporting Persons.
I.R.S. Identification Nos. of above persons (entities only).
AP/RM Acquisition, LLC
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2. Check the Appropriate Box if a Member of a Group (See Instructions)
(a) [X]
(b) [_]
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3. SEC Use Only
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4. Source of Funds (See Instructions) OO
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5. Check 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 474,427
Number of Shares|---------------------------------------------------------------
Bene-ficially |8. Shared Voting Power 0
Owned by Each |---------------------------------------------------------------
Reporting |9. Sole Dispositive Power 474,427
Person With |---------------------------------------------------------------
|10. Shared Dispositive Power 0
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11. Aggregate Amount Beneficially Owned by Each Reporting Person
474,427 shares of Common Stock (See footnote below*)
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12. Check if the Aggregate Amount in Row (11) Excludes Certain Shares (See
Instructions) [_]
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13. Percent of Class Represented by Amount in Row (11) 2.6%
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14. Type of Reporting Person (See Instructions) OO
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(*) Includes Non-Voting Stock acquired by the Initial Reporting Persons.
See Item 4 in Amendment No.7 to this Schedule 13D.
Page 8 of 11 Pages
This Amendment No. 7 amends and supplements the following Items of the
Statement on Schedule 13D, as amended (the "Schedule 13D"), of Apollo Investment
Fund IV, L.P. ("AIF IV"), Apollo Overseas Partners IV, L.P. ("Overseas IV"),
Apollo Advisors IV, L.P. ("Advisors IV"), Apollo Management IV, L.P.
("Management IV"), and AIF IV/RRRR LLC ("AIF LLC," and collectively, the
"Initial Reporting Persons") originally filed on June 14, 1999, as further
amended from time to time thereafter, with the Securities and Exchange
Commission with respect to shares of Common Stock of Rare Medium Group, Inc.
(the "Issuer"), par value $0.01 per share (the "Common Stock"). Unless otherwise
indicated, all capitalized terms used but not defined herein have the meanings
set forth in the Schedule 13D.
Item 3. Source and Amount of Funds or Other Consideration
Item 3 is hereby amended and supplemented as follows:
On July 19, 2002, AIF IV and Overseas IV purchased an aggregate of
51,141,859 shares of the Issuer's Non-Voting Common Stock, par value $0.01 per
share (the "Non-Voting Stock") for an aggregate purchase price of $10,279,513.66
(the "Purchase Price") pursuant to the exercise of their oversubscription
privilege in accordance with the terms of the Rights Offering. The purchases
were financed with cash on hand from contributions of partners of each of AIF IV
and Overseas IV, respectively, as the case may be. All such contributions are in
the ordinary course and pursuant to (equity) investor commitments to the
respective entities.
Item 4. Purpose of the Transaction
Item 4 is hereby amended and supplemented as follows:
Pursuant to the terms of the Investment Agreement, the Issuer held the
Special Meeting (as defined and described in Amendment No. 5 to this Schedule
13D) on July 11, 2002. At such meeting, the stockholders of the Issuer approved
(i) the amendment to the Issuer's certificate of incorporation in order to
effect a one for ten reverse stock split, (ii) the issuance of shares of Common
Stock and Non-Voting Stock to be issued in connection with the Rights Offering,
and (iii) the exchange of Common Stock for Non-Voting Stock, on a one for one
basis, in connection with certain transfers of stock by the Apollo Purchasers.
On July 19, 2002, AIF IV and Overseas IV exercised their
oversubscription privilege pursuant to the Rights Offering, which Rights
Offering closed on July 16, 2002, and acquired an additional 51,51,141,859
shares of Non-Voting Stock, prior to giving effect to the one for ten share
reverse stock split. The shares of Non-Voting Stock held by the Initial
Reporting Persons are exchangeable for Common Stock, on a one for one basis,
under the circumstances contemplated by Section 8.6(b) of the Investment
Agreement, a copy of which was filed with Amendment No. 5 to this Schedule 13D
and the terms of which are incorporated herein by reference.
Page 9 of 11 Pages
Item 5. Interest in Securities of the Issuer.
Items 5(a) and (b) are hereby amended and supplemented as follows:
As of the date hereof, the Initial Reporting Persons may be deemed to
beneficially own 1,745,377 shares of Common Stock, 1,073,007 shares of Preferred
Stock, 130,838 Series 1-A Warrants and 12,262,542 Series 2-A Warrants and
8,990,770 shares of Non-Voting Stock. AP/RM LLC beneficially owns 474,427 shares
of Common Stock acquired pursuant to the Tender Offer and each of the Initial
Reporting Persons may be deemed to have shared voting and dispositive power with
respect to such 474,427 shares of Common Stock. The shares of Common Stock held
by the Reporting Persons represent approximately 2.6% of the class. Each share
of Preferred Stock currently held by the Initial Reporting Persons is currently
convertible into approximately 1.429 shares of Common Stock, or an aggregate of
1,532,867 shares of Common Stock, which represents approximately 8.3% of the
class. The Series 1-A Warrants currently held by the Initial Reporting Persons
are currently exercisable for 176,630 shares of Common Stock, representing
approximately 0.9% of the class. The Series 2-A Warrants currently held by the
Initial Reporting Persons are currently exercisable for 1,226,254 shares of
Common Stock, representing approximately 6.6% of the class. The shares of
Non-Voting Stock held by the Initial Reporting Person are currently
exchangeable, in limited circumstances, for 8,990,770 shares of Common Stock,
which represents approximately 48.7% of the class. For purposes of calculating
ownership percentages in this Schedule 13D, the number of "Outstanding Shares"
includes (i) 6,532,496 (as adjusted for the one for ten reverse stock split)
shares of Common Stock outstanding on May 16, 2002 based on information provided
to the Reporting Persons by the Issuer, (ii) the shares of Common Stock issuable
to the Initial Reporting Persons upon conversion of the shares of Preferred
Stock, Series 1-A Warrants and Series 2-A Warrants currently held by such
persons, and (iii) the Common Stock issuable to the Initial Reporting Persons
upon the exchange of the shares of Non-Voting Stock held by such persons. The
amounts set forth in this Item 5(a) and (b) reflect the one for ten reverse
stock split approved by the stockholders of the Issuer at the Special Meeting,
but do not reflect any anti-dilution adjustments to the Preferred Stock
conversion price and the Warrant exercise price, which amounts have not yet been
calculated, but which amounts are not expected to be material.
Page 10 of 11 Pages
Signature
After reasonable inquiry and to the best of their knowledge and
belief, the undersigned certify that the information set forth in this statement
is true, complete and correct.
July 25, 2002 APOLLO INVESTMENT FUND IV, L.P.
By: APOLLO ADVISORS IV, L.P.
its general partner
By: Apollo Capital Management IV, Inc.
its general partner
By: /s/ Michael D. Weiner
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Name: Michael D. Weiner
Title: Vice President
July 25, 2002 APOLLO OVERSEAS PARTNERS IV, L.P.
By: APOLLO ADVISORS IV, L.P.
its managing general partner
By: Apollo Capital Management IV, Inc.
its general partner
By: /s/ Michael D. Weiner
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Name: Michael D. Weiner
Title: Vice President
July 25, 2002 APOLLO ADVISORS IV, L.P.
in its capacity as general partner
to Apollo Investment Fund IV, L.P. and
Apollo Overseas Partners IV, L.P.
By: Apollo Capital Management IV, Inc.
its general partner
By: /s/ Michael D. Weiner
------------------------------------
Name: Michael D. Weiner
Title: Vice President
Page 11 of 11 Pages
July 25, 2002 APOLLO MANAGEMENT IV, L.P.
in its capacity as investment manager to
Apollo Investment Fund IV, L.P. and
Apollo Overseas Partners IV, L.P.
By: AIF IV Management, Inc.
its general partner
By: /s/ Michael D. Weiner
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Name: Michael D. Weiner
Title: Vice President
July 25, 2002 AIF IV/RRRR LLC
By: Apollo Management IV, L.P.
its manager
By: AIF IV Management, Inc.
its general partner
By: /s/ Michael D. Weiner
------------------------------------
Name: Michael D. Weiner
Title: Vice President
July 25, 2002 AP/RM ACQUISITION, LLC
By: Apollo Management IV, L.P.
its manager
By: AIF IV Management, Inc.
its general partner
By: /s/ Michael D. Weiner
------------------------------------
Name: Michael D. Weiner
Title: Vice President