UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
SCHEDULE 13D
Under the Securities Exchange Act of 1934
(Amendment No. 1)*
(Name of Issuer)
Common Stock, $0.01 par value per share
Series C-1 Preferred Stock, $0.01 par value per share
Series D Preferred Stock, $0.01 par value per share
(Title of Class of Securities)
(CUSIP Number)
Kirkland & Ellis LLP
555 California Street
San Francisco, CA 94104
Attn: Gary M. Holihan, P.C.
Jeremy M. Veit
(415) 439-1400
(Name, Address and Telephone Number of Person Authorized to
Receive Notices and Communications)
(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 §§240.13d-1(e), 240.13d-1(f) or 240.13d-1(g), check the following box.
o
Note:
Schedules filed in paper format shall include a signed original and five copies of the schedule, including all exhibits. See Rule 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 persons 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).
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NAMES OF REPORTING PERSONS
Steel Holdings, Inc.
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CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (SEE INSTRUCTIONS)
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(a)
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(b)
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SEC USE ONLY
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SOURCE OF FUNDS (SEE INSTRUCTIONS)
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OO
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CHECK IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS 2(d) OR 2(e)
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CITIZENSHIP OR PLACE OF ORGANIZATION
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Delaware
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SOLE VOTING POWER
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NUMBER OF
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None
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SHARES
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SHARED VOTING POWER
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BENEFICIALLY
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OWNED BY
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2,347,506 shares of Common Stock;
4,331,540 shares of Series B Preferred Stock;
18,000 shares of Series C-1 Preferred Stock;
6,000 shares of Series D Preferred Stock (see Item 5)
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EACH
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SOLE DISPOSITIVE POWER
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REPORTING
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PERSON
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None
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WITH
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SHARED DISPOSITIVE POWER
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None
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11
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AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
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2,347,506 shares of Common Stock;
4,331,540 shares of Series B Preferred Stock;
18,000 shares of Series C-1 Preferred Stock;
6,000 shares of Series D Preferred Stock (see Item 5)
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CHECK IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES (SEE INSTRUCTIONS)
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13
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PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
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5.2% of Common Stock; 100% of Series B Preferred Stock; 100% of Series C-1 Preferred Stock;100% of Series D Preferred Stock (see Item 5)
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TYPE OF REPORTING PERSON (SEE INSTRUCTIONS)
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CO, HC
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1
Represents the aggregate number of outstanding shares of Common Stock, Series
B Preferred Stock, Series C-1 Preferred Stock and Series D Preferred Stock beneficially
owned by ABRY Mezzanine Partners, L.P. and ABRY Partners, LLC, each of whom entered into
a Voting Agreement dated June 11, 2009 with Steel Holdings, Inc., and Capital Resource
Partners IV, L.P., who entered into a Voting Agreement dated June 25, 2009 with Steel
Holdings, Inc., in each case obligating the holder to, among other things, vote such shares in favor of the proposed
acquisition of SoftBrands, Inc. by Steel Holdings, Inc. pursuant to the Merger
Agreement (as defined in Item 3). See Items 3, 4 and 5.
2
The shares of Common Stock, Series B Preferred Stock, Series C-1 Preferred
Stock and Series D Preferred Stock vote together as a single class, with the Series
B Preferred Stock, Series C-1 Preferred Stock and Series D Preferred Stock voting on
an as-converted to Common Stock basis. As disclosed in SoftBrands Preliminary
Proxy Statement on Form PREM 14A filed on June 25, 2009, as of June 11, 2009, the
Series B Preferred Stock, Series C-1 Preferred Stock and Series D Preferred Stock reported herein represented the right to vote 16,879,578
shares of Common Stock. Collectively, the shares of Common Stock, Series B
Preferred Stock, Series C-1 Preferred Stock and Series D Preferred Stock
reported herein represented the right to vote 19,540,787 shares of Common
Stock, or approximately 31.47% of the total outstanding shares of Common
Stock on an as-converted basis.
2
This Amendment No. 1 to Schedule 13D (this
Amendment No. 1
) amends the Statement on
Schedule 13D relating to shares of common stock, $0.01 par value per share
Common Stock
),
shares of Series B Preferred Stock, $0.01 par value per share (
Series B Preferred Stock
),
shares of Series C-1 Preferred Stock, $0.01 par value per share (
Series C-1 Preferred
Stock
), and shares of Series D Preferred Stock, $0.01 par value per share (
Series D
Preferred Stock
), of SoftBrands, Inc., a Delaware corporation (
SoftBrands
), filed by
Steel Holdings with the Securities and Exchange Commission on June 22, 2009 (the
Schedule
13D
). The principal executive offices of SoftBrands are located at 800 LaSalle Avenue, Suite
2100, Minneapolis, MN 55402. Each capitalized term used and not defined herein shall have the
meaning assigned to such term in the Schedule 13D. Except as otherwise provided herein, each Item
of the Schedule 13D remains unchanged.
The Information set forth in response to each separate Item below shall be deemed to be a
response to all Items where such information is relevant.
Item 3. Source and Amount of Funds or Other Consideration.
Item 3 is hereby amended and restated in its entirety as follows:
SoftBrands and Steel Holdings have entered into an Agreement and Plan of Merger, dated as of
June 11, 2009 (the
Merger Agreement
) pursuant to which Steel Holdings has agreed to
acquire all of the outstanding Common Stock of SoftBrands for $0.92 per share in cash, without
interest, representing an equity value for Common Stock of approximately $43.6 million in the
aggregate. In addition, pursuant to the Merger Agreement, outstanding shares SoftBrands preferred
stock will be purchased or redeemed for cash, which would represent, calculated as of the date of
the Merger Agreement, approximately an additional $29.5 million.
As an inducement for Steel Holdings to enter into the Merger Agreement with SoftBrands, and in
consideration thereof, certain stockholders of SoftBrands entered into Voting Agreements, dated as
of June 11, 2009, with Steel Holdings (the ABRY
Voting Agreements
). The names of such
stockholders and number of shares of Common Stock, Series C-1 Preferred Stock and Series D
Preferred Stock owned by each is set forth in
Exhibit 99.2
. Such stockholders
(collectively, the
ABRY Voting Holders
) hold 1,958,087 shares of Common Stock, 15,000
shares of Series C-1 Preferred Stock and 5,000 shares of Series D Preferred Stock, which
collectively represent, on an as-converted Common Stock basis, approximately 20.29% of the shares
of Common Stock deemed to be outstanding.
In addition, as an inducement for Steel Holdings to consent to certain transactions undertaken
by SoftBrands, and in consideration thereof, a certain stockholder of SoftBrands entered into a
Voting Agreement, dated as of June 25, 2009, with Steel Holdings (the
CRP Voting
Agreement
and, together with the ABRY Voting Agreements, the
Voting Agreements
).
The name of such stockholder and number of shares of Common Stock, Series B Preferred Stock, Series
C-1 Preferred Stock and Series D Preferred Stock owned by such stockholder is set forth in
Exhibit 99.3
. Such stockholder (the
CRP Voting Holder
and, together with the
ABRY Voting Holders, the
Voting Holders
) holds 389,419 shares of Common Stock, 4,331,540
shares of Series B Preferred Stock, 3,000 shares of Series C-1 Preferred Stock, and 1,000 shares of
Series D Preferred Stock, which collectively represent, on
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an as-converted Common Stock basis, approximately 11.2% of the shares of Common Stock deemed to be
outstanding.
The Voting Holders collectively exercise voting control over an aggregate of 19,540,787 shares
of Common Stock on an as-converted Common Stock basis, representing approximately 31.47% of the
shares of Common Stock deemed to be outstanding.
The Voting Holders have agreed that until the termination of the Voting Agreements, each such
Voting Holder will vote all shares of Common Stock, Series B Preferred Stock, Series C-1 Preferred
Stock and Series D Preferred Stock owned by such Voting Holders in favor of the approval and
adoption of the Merger Agreement. For a description of the Voting Agreements see Item 4 below,
which description is incorporated herein by reference in response to this Item 3.
Steel Holdings did not pay additional consideration to the Voting Holders in connection with
the execution and delivery of the Voting Agreements. The descriptions of the Merger Agreement and
the Voting Agreements contained in this Schedule 13D are qualified in their entirety by reference
to such agreements, copies of which appear as
Exhibit 99.1
and
Exhibits 99.2
and
99.3
hereto, respectively.
Item 4. Purpose of Transaction.
Item 4 is hereby amended and restated in its entirety as follows:
As stated above, the ABRY Voting Agreements were entered into as an inducement for, and in
consideration of, Steel Holdings entering into the Merger Agreement, and the CRP Voting Agreement
was entered into as an inducement for, and in consideration of, Steel Holdings consenting to
certain transactions undertaken by SoftBrands. Subject to the terms and conditions thereof, the
Merger Agreement provides for the merger (the
Merger
) of a wholly owned subsidiary of
Steel Holdings (
Merger Sub
) with and into SoftBrands. At the effective time of the
Merger, each outstanding share of Common Stock will be exchanged for $0.92 in cash, representing an
equity value of approximately $43.6 million in the aggregate, and SoftBrands outstanding shares of
preferred stock will be purchased or redeemed for cash, which would represent approximately,
calculated as of the date of the Merger Agreement, an additional $29.5 million.
The Merger Agreement has been approved by the board of directors of each of SoftBrands and
Steel Holdings. The transaction is subject to approval by the holders of a majority in interest of
SoftBrands outstanding shares of Company Capital Stock (as such term is defined in the Merger
Agreement). The CRP Voting Holder, as the holder of a majority in interest of the outstanding
shares of Series B Preferred Stock, has consented to the Merger as required by the Certificate of
Designations, Preferences and Rights of the Series B Preferred Stock. The transaction is also
subject to customary regulatory approvals and other closing conditions and is expected to close in
the third quarter of 2009.
Pursuant to the Voting Agreements, (a) the ABRY Voting Holders, the beneficial owners of
1,958,087 shares of Common Stock, 15,000 shares of Series C-1 Preferred Stock and 5,000
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shares of Series D Preferred Stock, which collectively represent, on an as-converted Common
Stock basis, approximately 20.29% of the shares of Common Stock deemed to be outstanding, and (b)
the CRP Voting Holder, the beneficial owner of 389,419 shares of Common Stock, 4,331,540 shares of
Series B Preferred Stock, 3,000 shares of Series C-1 Preferred Stock, and 1,000 shares of Series D
Preferred Stock, which collectively represent, on an as-converted Common Stock basis, approximately
11.2% of the shares of Common Stock deemed to be outstanding, have agreed to vote (or cause to be
voted) all issued and outstanding securities of SoftBrands owned of record or beneficially by each
such shareholder: (i) in favor of the adoption of the Merger Agreement and the transactions
contemplated by the Merger Agreement; and (ii) against the following actions: (1) approval of any
proposal made in opposition to or competition with consummation of the Merger and the Merger
Agreement, including any Acquisition Proposal (as such term is defined in the Merger Agreement),
(2) any Acquisition Transaction (as such term is defined in the Merger Agreement) with any party
other than Steel Holdings or an affiliate of Steel Holdings as contemplated by the Merger
Agreement, (3) any other proposal that is intended to, or is reasonably likely to, result in the
conditions of Steel Holdings or Merger Subs obligations under the Merger Agreement not being
fulfilled, (4) any amendment of SoftBrands certificate of incorporation or by-laws that is not
requested or expressly approved by Steel Holdings, and (5) any dissolution, liquidation or winding
up of SoftBrands. Pursuant to the Voting Agreements, each Voting Holder granted to Steel Holdings
and Merger Sub an irrevocable proxy and irrevocably appointed Steel Holdings and Merger Sub such
Voting Holders attorney and proxy to vote or, if applicable, to give consent with respect to, all
of such Voting Holders Common Stock, Series B Preferred Stock, Series C-1 Preferred Stock and
Series D Preferred Stock subject to the Voting Agreements, with regard to any of the matters
referred to in the immediately preceding sentence.
In addition, the Voting Holders cannot (a) transfer, assign, sell, gift-over, pledge or
otherwise dispose of, or consent to any of the foregoing, any or all of the shares subject to the
Voting Agreements or any right or interest therein (
Transfer
); provided, however, such
restrictions shall not be applicable to (i) a gift of the shares made to the Voting Holders spouse
or issue, including adopted children, or to a trust for the exclusive benefit of the Voting Holder
or the Voting Holders spouse or issue, provided such transferee agrees to be bound by the terms of
the Voting Agreements or (ii) a transfer of title to the shares effected pursuant to the Voting
Holders will or the laws of intestate succession; (b) enter into any contract, option or other
agreement, arrangement or understanding with respect to any Transfer; (c) grant any proxy,
power-of-attorney or other authorization or consent with respect to any of the shares subject to
the Voting Agreements (other than the proxy contemplated in Section 3 of the Voting Agreements); or
(d) deposit any of the shares subject to the Voting Agreements into a voting trust, or enter into a
voting agreement or arrangement with respect to any of the shares subject to the Voting Agreements.
The Voting Agreements expire on the earlier of: (i) such time as the Merger Agreement is
terminated in accordance with its terms or (ii) such time as the Merger becomes effective.
The purpose of the Voting Agreements is to enable Steel Holdings and SoftBrands to consummate
the transactions contemplated by the Merger Agreement.
Upon the consummation of the Merger, the directors and officers of Merger Sub immediately
prior to the effective time of the Merger shall be the directors and officers,
5
respectively, of the surviving corporation immediately following the effective time of the
Merger, and shall hold office until their respective successors are duly elected and qualified, or
their earlier death, resignation or removal, in accordance with applicable law and the certificate
of incorporation and bylaws of the surviving corporation.
At the effective time of the Merger, the certificate of incorporation and by-laws of
SoftBrands shall be amended as set forth in Section 2.5 of the Merger Agreement.
If the Merger is consummated as planned, Steel Holdings anticipates that SoftBrands will
become a wholly owned subsidiary of Steel Holdings and that Steel Holdings will seek to cause the
Common Stock to be deregistered under the Exchange Act and the Securities Act of 1933, as amended,
and delisted from the NYSE Amex.
Except as set forth in this Item 4, neither Steel Holdings nor, to Steel Holdings knowledge,
any of the individuals referred to in Item 2 of this Statement, has any plans or proposals which
relate to or would result in any of the actions specified in clauses (a) through (j) of Item 4 of
Schedule 13D. Steel Holdings or any of the individuals referred to in Item 2 of this Statement may
determine at a future date to adopt plans or intentions different from those set forth herein, to
the extent permitted by the Merger Agreement.
The foregoing summary of certain provisions of the Merger Agreement and the Voting Agreements
is not intended to be complete and is qualified in its entirety by reference to the full text of
such agreements.
Item 5. Interest in Securities of the Issuer.
Item 5 is hereby amended and restated in its entirety as follows:
(a)-(b)
As of the filing date of this Schedule 13D, as a result of the Voting Agreements,
Steel Holdings may be deemed to have (i) beneficial ownership (within the meaning of Rule 13d-3
under the Exchange Act) and (ii) shared power to vote or direct the vote of 2,347,506 shares of
Common Stock, 4,331,540 shares of Series B Preferred Stock, 18,000 shares of Series C-1 Preferred
Stock and 6,000 shares of Series D Preferred Stock, which collectively represent, on an
as-converted Common Stock basis, approximately 31.47% of the shares of Common Stock deemed to be
outstanding pursuant to Rule 13d-3(d)(1), subject to the conditions and limitations of the Voting
Agreements.
Steel Holdings has neither sole nor shared dispositive power over the shares of Common Stock,
Series B Preferred Stock, Series C-1 Preferred Stock or Series D Preferred Stock subject to the
Voting Agreements. Beneficial ownership of the Common Stock, Series B Preferred Stock, Series C-1
Preferred Stock or Series D Preferred Stock is being reported hereunder solely because Steel
Holdings may be deemed to have beneficial ownership of such shares of Common Stock, Series B
Preferred Stock, Series C-1 Preferred Stock or Series D Preferred Stock as a result of Steel
Holdings right under the Voting Agreements to direct the voting of shares and to vote such shares
in accordance with irrevocable proxies. However, Steel Holdings does not control the voting of
such shares with respect to other matters and does not possess any other rights as a SoftBrands
stockholder with respect to such shares. Steel Holdings disclaims any beneficial ownership of such
shares of Common Stock, Series B Preferred Stock, Series C-1 Preferred Stock or Series D Preferred
Stock, and nothing herein shall be deemed to be an
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admission by Steel Holdings as to the beneficial ownership of such shares of Common Stock,
Series B Preferred Stock, Series C-1 Preferred Stock or Series D Preferred Stock for purposes of
Section 13(d) of the Securities Exchange Act of 1934, or for any other purpose. The information
contained in Item 4 of this Statement is incorporated herein by reference.
All of the percentages calculated in this Statement are based upon an aggregate of 44,866,535
shares of Common Stock outstanding as of June 11, 2009, as disclosed in SoftBrands Preliminary
Proxy Statement on Form PREM 14A filed on June 25, 2009.
(c)
Except as set forth or incorporated herein, neither Steel Holdings nor, to Steel Holdings
knowledge, any of the individuals referred to Item 2 of this Statement, has effected any
transaction in any shares of Common Stock, Series B Preferred Stock, Series C-1 Preferred Stock or
Series D Preferred Stock of SoftBrands during the past 60 days.
(d)
Not applicable.
(e)
Not applicable.
Item 7. Material to be Filed as Exhibits.
Item 7
is hereby amended and restated in its entirety as follows:
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99.1.
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Agreement and Plan of Merger, dated June 11, 2009, by and among
Steel Holdings, Inc., Steel Merger Sub, Inc. and SoftBrands, Inc.
(incorporated by reference to Exhibit 2.1 to the Current Report on
Form 8-K filed by SoftBrands, Inc. on June 12, 2009 (File No.
001-32711)).
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99.2.
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Voting Agreements, dated June 11, 2009, by and between Steel
Holdings, Inc. and Steel Merger Sub, Inc., on the one hand, and each
of ABRY Mezzanine Partners, L.P. and ABRY Partners, LLC., on the
other hand (incorporated by reference to Exhibit 2.2 to the Current
Report on Form 8-K filed by SoftBrands, Inc. on June 12, 2009 (File
No. 001-32711)).
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99.3
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Voting Agreement, dated June 25, 2009, by and between Steel
Holdings, Inc. and Steel Merger Sub, Inc., on the one hand, and
Capital Resource Partners IV, L.P., on the other hand (incorporated
by reference to Annex B to the Preliminary Proxy on Form PREM 14A
filed by SoftBrands, Inc. on June 25, 2009 (File No. 001-32711)).
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After reasonable inquiry and to the best of the undersigneds knowledge and belief, the
undersigned certifies that the information set forth in this Amendment No. 1 is true, complete and
correct.
Dated: June 30, 2009
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Steel Holdings, Inc.
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By:
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/s/ John Gilligan
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Name:
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John Gilligan
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Title:
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Vice President and Secretary
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8
INDEX TO EXHIBITS
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Exhibit
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Number
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Document
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99.1.
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Agreement and Plan of Merger, dated June 11,
2009, by and among Steel Holdings, Inc., Steel
Merger Sub, Inc. and SoftBrands, Inc.
(incorporated by reference to Exhibit 2.1 to
the Current Report on Form 8-K filed by
SoftBrands, Inc. on June 12, 2009 (File No.
001-32711)).
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99.2.
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Voting Agreements, dated June 11, 2009, by and
between Steel Holdings, Inc. and Steel Merger
Sub, Inc., on the one hand, and each of ABRY
Mezzanine Partners, L.P. and ABRY Partners,
LLC., on the other hand (incorporated by
reference to Exhibit 2.2 to the Current Report
on Form 8-K filed by SoftBrands, Inc. on June
12, 2009 (File No. 001-32711)).
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99.3
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Voting Agreement, dated June 25, 2009, by and
between Steel Holdings, Inc. and Steel Merger
Sub, Inc., on the one hand, and Capital Resource
Partners IV, L.P. on the other hand
(incorporated by reference to Annex B to the
Preliminary Proxy on Form PREM 14A filed by
SoftBrands, Inc. on June 25, 2009 (File No.
001-32711)).
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