-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, M73OaO9mUjRV5hpELp0WAY0eHCWg+R7qDquLNpM5+Ga5eFBhPb8FZGUCoLFjqYcZ n/Rm21oxXLBewfysLt8GLA== 0000909012-08-000044.txt : 20080111 0000909012-08-000044.hdr.sgml : 20080111 20080111152830 ACCESSION NUMBER: 0000909012-08-000044 CONFORMED SUBMISSION TYPE: SC 13D PUBLIC DOCUMENT COUNT: 1 FILED AS OF DATE: 20080111 DATE AS OF CHANGE: 20080111 SUBJECT COMPANY: COMPANY DATA: COMPANY CONFORMED NAME: MAC-GRAY CORP CENTRAL INDEX KEY: 0001038280 STANDARD INDUSTRIAL CLASSIFICATION: SERVICES-PERSONAL SERVICES [7200] IRS NUMBER: 043361982 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: SC 13D SEC ACT: 1934 Act SEC FILE NUMBER: 005-53449 FILM NUMBER: 08526117 BUSINESS ADDRESS: STREET 1: 404 WYMAN STREET STREET 2: SUITE 400 CITY: WALTHAM STATE: MA ZIP: 02451 BUSINESS PHONE: 781-487-7600 MAIL ADDRESS: STREET 1: 404 WYMAN STREET STREET 2: SUITE 400 CITY: WALTHAM STATE: MA ZIP: 02451 FORMER COMPANY: FORMER CONFORMED NAME: MAC GRAY INC DATE OF NAME CHANGE: 19970424 FILED BY: COMPANY DATA: COMPANY CONFORMED NAME: River Road Asset Management, LLC CENTRAL INDEX KEY: 0001341401 IRS NUMBER: 432076925 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: SC 13D BUSINESS ADDRESS: STREET 1: 462 SOUTH FOURTH STREET, SUITE 1600 CITY: LOUISVILLE STATE: KY ZIP: 40207 BUSINESS PHONE: 5023714100 MAIL ADDRESS: STREET 1: 462 SOUTH FOURTH STREET, SUITE 1600 CITY: LOUISVILLE STATE: KY ZIP: 40207 SC 13D 1 t303927.txt MAC-GRAY CORP. =========================================================================== SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 --------------- SCHEDULE 13D (Rule 13d-101) INFORMATION TO BE INCLUDED IN STATEMENTS FILED PURSUANT TO RULE 13d-1(a) AND AMENDMENTS THERETO FILED PURSUANT TO RULE 13d-2(a) (Amendment No. ___) Mac-Gray Corporation (Name of Issuer) Common Stock, par value $.01 per share (Title of Class of Securities) 554153106 (CUSIP Number) Thomas D. Mueller Chief Operations Officer and Chief Compliance Officer 462 South Fourth Street, Suite 1600 Louisville, KY 40202 (502) 371-4100 (Name, Address and Telephone Number of Person Authorized to Receive Notices and Communications) January 3, 2008 (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 Rule 13d-1(e), 13d-1(f) or 13d-1(g), check the following box |X|. (Continued on following pages) (Page 1 of 11 Pages) ===========================================================================
- ------------------------------------------------ ---------------------------------------------- CUSIP No. 554153106 13D Page 2 of 11 Pages - ------------------------------------------------ ---------------------------------------------- - --------- --------------------------------------------------------------------------------------------- ------------ 1 NAMES OF REPORTING PERSONS RIVER ROAD ASSET MANAGEMENT, LLC I.R.S. IDENTIFICATION NO. OF ABOVE PERSONS (ENTITIES ONLY) - --------- --------------------------------------------------------------------------------------------- ------------ - --------- --------------------------------------------------------------------------------------------- ------------ 2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a) |_| (b) |X| - --------- --------------------------------------------------------------------------------------------- ------------ - --------- --------------------------------------------------------------------------------------------- ------------ 3 SEC USE ONLY - --------- --------------------------------------------------------------------------------------------- ------------ - --------- --------------------------------------------------------------------------------------------- ------------ 4 SOURCE OF FUNDS OO - --------- --------------------------------------------------------------------------------------------- ------------ - --------- --------------------------------------------------------------------------------------------- ------------ 5 CHECK IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEM 2(d) or 2(e) |_| - --------- --------------------------------------------------------------------------------------------- ------------ - --------- --------------------------------------------------------------------------------------------- ------------ 6 CITIZENSHIP OR PLACE OF ORGANIZATION DELAWARE - --------- --------------------------------------------------------------------------------------------- ------------ - ------------------------ ------ ------------------------------------------------------------------------------------ 7 SOLE VOTING POWER NUMBER OF 1,368,344 SHARES BENEFICIALLY OWNED BY EACH REPORTING PERSON WITH - ------------------------ ------ ------------------------------------------------------------------------------------ - ------------------------ ------ ------------------------------------------------------------------------------------ 8 SHARED VOTING POWER NONE - ------------------------ ------ ------------------------------------------------------------------------------------ - ------------------------ ------ ------------------------------------------------------------------------------------ 9 SOLE DISPOSITIVE POWER 1,879,334 - ------------------------ ------ ------------------------------------------------------------------------------------ - ------------------------ ------ ------------------------------------------------------------------------------------ 10 SHARED DISPOSITIVE POWER NONE - ------------------------ ------ ------------------------------------------------------------------------------------ - --------- ---------------------------------------------------------------------------------------------------------- 11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON 1,879,334 - --------- ---------------------------------------------------------------------------------------------------------- - --------- --------------------------------------------------------------------------------------------- ------------ 12 CHECK IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES |_| - --------- --------------------------------------------------------------------------------------------- ------------ - --------- --------------------------------------------------------------------------------------------- ------------ 13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) 14.2% - --------- --------------------------------------------------------------------------------------------- ------------ - --------- --------------------------------------------------------------------------------------------- ------------ 14 TYPE OF REPORTING PERSON IA - --------- --------------------------------------------------------------------------------------------- ------------ - ------------------------------------------------ ---------------------------------------------- CUSIP No. 554153106 13D Page 3 of 11 Pages - ------------------------------------------------ ---------------------------------------------- - --------- --------------------------------------------------------------------------------------------- ------------ 1 NAMES OF REPORTING PERSONS RIVER ROAD PARTNERS, LLC I.R.S. IDENTIFICATION NO. OF ABOVE PERSONS (ENTITIES ONLY) - --------- --------------------------------------------------------------------------------------------- ------------ - --------- --------------------------------------------------------------------------------------------- ------------ 2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a) |_| (b) |X| - --------- --------------------------------------------------------------------------------------------- ------------ - --------- --------------------------------------------------------------------------------------------- ------------ 3 SEC USE ONLY - --------- --------------------------------------------------------------------------------------------- ------------ - --------- --------------------------------------------------------------------------------------------- ------------ 4 SOURCE OF FUNDS OO - --------- --------------------------------------------------------------------------------------------- ------------ - --------- --------------------------------------------------------------------------------------------- ------------ 5 CHECK IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEM 2(d) or 2(e) |_| - --------- --------------------------------------------------------------------------------------------- ------------ - --------- --------------------------------------------------------------------------------------------- ------------ 6 CITIZENSHIP OR PLACE OF ORGANIZATION KENTUCKY - --------- --------------------------------------------------------------------------------------------- ------------ - ------------------------ ------ ------------------------------------------------------------------------------------ 7 SOLE VOTING POWER NUMBER OF NONE SHARES BENEFICIALLY OWNED BY EACH REPORTING PERSON WITH - ------------------------ ------ ------------------------------------------------------------------------------------ - ------------------------ ------ ------------------------------------------------------------------------------------ 8 SHARED VOTING POWER 1,368,344 - ------------------------ ------ ------------------------------------------------------------------------------------ - ------------------------ ------ ------------------------------------------------------------------------------------ 9 SOLE DISPOSITIVE POWER NONE - ------------------------ ------ ------------------------------------------------------------------------------------ - ------------------------ ------ ------------------------------------------------------------------------------------ 10 SHARED DISPOSITIVE POWER 1,879,334 - ------------------------ ------ ------------------------------------------------------------------------------------ - --------- ---------------------------------------------------------------------------------------------------------- 11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON 1,879,334 - --------- ---------------------------------------------------------------------------------------------------------- - --------- --------------------------------------------------------------------------------------------- ------------ 12 CHECK IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES |_| - --------- --------------------------------------------------------------------------------------------- ------------ - --------- --------------------------------------------------------------------------------------------- ------------ 13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) 14.2% - --------- --------------------------------------------------------------------------------------------- ------------ - --------- --------------------------------------------------------------------------------------------- ------------ 14 TYPE OF REPORTING PERSON HC - --------- --------------------------------------------------------------------------------------------- ------------ - ------------------------------------------------ ---------------------------------------------- CUSIP No. 554153106 13D Page 4 of 11 Pages - ------------------------------------------------ ---------------------------------------------- - --------- --------------------------------------------------------------------------------------------- ------------ 1 NAMES OF REPORTING PERSONS JAMES C. SHIRCLIFF I.R.S. IDENTIFICATION NO. OF ABOVE PERSONS (ENTITIES ONLY) - --------- --------------------------------------------------------------------------------------------- ------------ - --------- --------------------------------------------------------------------------------------------- ------------ 2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a) |_| (b) |X| - --------- --------------------------------------------------------------------------------------------- ------------ - --------- --------------------------------------------------------------------------------------------- ------------ 3 SEC USE ONLY - --------- --------------------------------------------------------------------------------------------- ------------ - --------- --------------------------------------------------------------------------------------------- ------------ 4 SOURCE OF FUNDS OO - --------- --------------------------------------------------------------------------------------------- ------------ - --------- --------------------------------------------------------------------------------------------- ------------ 5 CHECK IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEM 2(d) or 2(e) |_| - --------- --------------------------------------------------------------------------------------------- ------------ - --------- --------------------------------------------------------------------------------------------- ------------ 6 CITIZENSHIP OR PLACE OF ORGANIZATION U.S. - --------- --------------------------------------------------------------------------------------------- ------------ - ------------------------ ------ ------------------------------------------------------------------------------------ 7 SOLE VOTING POWER NUMBER OF NONE SHARES BENEFICIALLY OWNED BY EACH REPORTING PERSON WITH - ------------------------ ------ ------------------------------------------------------------------------------------ - ------------------------ ------ ------------------------------------------------------------------------------------ 8 SHARED VOTING POWER 1,368,344 - ------------------------ ------ ------------------------------------------------------------------------------------ - ------------------------ ------ ------------------------------------------------------------------------------------ 9 SOLE DISPOSITIVE POWER NONE - ------------------------ ------ ------------------------------------------------------------------------------------ - ------------------------ ------ ------------------------------------------------------------------------------------ 10 SHARED DISPOSITIVE POWER 1,879,334 - ------------------------ ------ ------------------------------------------------------------------------------------ - --------- ---------------------------------------------------------------------------------------------------------- 11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON 1,879,334 - --------- ---------------------------------------------------------------------------------------------------------- - --------- --------------------------------------------------------------------------------------------- ------------ 12 CHECK IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES |_| - --------- --------------------------------------------------------------------------------------------- ------------ - --------- --------------------------------------------------------------------------------------------- ------------ 13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) 14.2% - --------- --------------------------------------------------------------------------------------------- ------------ - --------- --------------------------------------------------------------------------------------------- ------------ 14 TYPE OF REPORTING PERSON HC, IN - --------- --------------------------------------------------------------------------------------------- ------------ - ------------------------------------------------ ---------------------------------------------- CUSIP No. 554153106 13D Page 5 of 11 Pages - ------------------------------------------------ ---------------------------------------------- - --------- --------------------------------------------------------------------------------------------- ------------ 1 NAMES OF REPORTING PERSONS HENRY W. SANDERS I.R.S. IDENTIFICATION NO. OF ABOVE PERSONS (ENTITIES ONLY) - --------- --------------------------------------------------------------------------------------------- ------------ - --------- --------------------------------------------------------------------------------------------- ------------ 2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a) |_| (b) |X| - --------- --------------------------------------------------------------------------------------------- ------------ - --------- --------------------------------------------------------------------------------------------- ------------ 3 SEC USE ONLY - --------- --------------------------------------------------------------------------------------------- ------------ - --------- --------------------------------------------------------------------------------------------- ------------ 4 SOURCE OF FUNDS OO - --------- --------------------------------------------------------------------------------------------- ------------ - --------- --------------------------------------------------------------------------------------------- ------------ 5 CHECK IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEM 2(d) or 2(e) |_| - --------- --------------------------------------------------------------------------------------------- ------------ - --------- --------------------------------------------------------------------------------------------- ------------ 6 CITIZENSHIP OR PLACE OF ORGANIZATION U.S. - --------- --------------------------------------------------------------------------------------------- ------------ - ------------------------ ------ ------------------------------------------------------------------------------------ 7 SOLE VOTING POWER NUMBER OF NONE SHARES BENEFICIALLY OWNED BY EACH REPORTING PERSON WITH - ------------------------ ------ ------------------------------------------------------------------------------------ - ------------------------ ------ ------------------------------------------------------------------------------------ 8 SHARED VOTING POWER 1,368,344 - ------------------------ ------ ------------------------------------------------------------------------------------ - ------------------------ ------ ------------------------------------------------------------------------------------ 9 SOLE DISPOSITIVE POWER NONE - ------------------------ ------ ------------------------------------------------------------------------------------ - ------------------------ ------ ------------------------------------------------------------------------------------ 10 SHARED DISPOSITIVE POWER 1,879,334 - ------------------------ ------ ------------------------------------------------------------------------------------ - --------- ---------------------------------------------------------------------------------------------------------- 11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON 1,879,334 - --------- ---------------------------------------------------------------------------------------------------------- - --------- --------------------------------------------------------------------------------------------- ------------ 12 CHECK IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES |_| - --------- --------------------------------------------------------------------------------------------- ------------ - --------- --------------------------------------------------------------------------------------------- ------------ 13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) 14.2% - --------- --------------------------------------------------------------------------------------------- ------------ - --------- --------------------------------------------------------------------------------------------- ------------ 14 TYPE OF REPORTING PERSON HC, IN - --------- --------------------------------------------------------------------------------------------- ------------ - ------------------------------------------------ ---------------------------------------------- CUSIP No. 554153106 13D Page 6 of 11 Pages - ------------------------------------------------ ---------------------------------------------- - --------- --------------------------------------------------------------------------------------------- ------------ 1 NAMES OF REPORTING PERSONS R. ANDREW BECK I.R.S. IDENTIFICATION NO. OF ABOVE PERSONS (ENTITIES ONLY) - --------- --------------------------------------------------------------------------------------------- ------------ - --------- --------------------------------------------------------------------------------------------- ------------ 2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a) |_| (b) |X| - --------- --------------------------------------------------------------------------------------------- ------------ - --------- --------------------------------------------------------------------------------------------- ------------ 3 SEC USE ONLY - --------- --------------------------------------------------------------------------------------------- ------------ - --------- --------------------------------------------------------------------------------------------- ------------ 4 SOURCE OF FUNDS OO - --------- --------------------------------------------------------------------------------------------- ------------ - --------- --------------------------------------------------------------------------------------------- ------------ 5 CHECK IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEM 2(d) or 2(e) |_| - --------- --------------------------------------------------------------------------------------------- ------------ - --------- --------------------------------------------------------------------------------------------- ------------ 6 CITIZENSHIP OR PLACE OF ORGANIZATION U.S. - --------- --------------------------------------------------------------------------------------------- ------------ - ------------------------ ------ ------------------------------------------------------------------------------------ 7 SOLE VOTING POWER NUMBER OF NONE SHARES BENEFICIALLY OWNED BY EACH REPORTING PERSON WITH - ------------------------ ------ ------------------------------------------------------------------------------------ - ------------------------ ------ ------------------------------------------------------------------------------------ 8 SHARED VOTING POWER 1,368,344 - ------------------------ ------ ------------------------------------------------------------------------------------ - ------------------------ ------ ------------------------------------------------------------------------------------ 9 SOLE DISPOSITIVE POWER NONE - ------------------------ ------ ------------------------------------------------------------------------------------ - ------------------------ ------ ------------------------------------------------------------------------------------ 10 SHARED DISPOSITIVE POWER 1,879,334 - ------------------------ ------ ------------------------------------------------------------------------------------ - --------- ---------------------------------------------------------------------------------------------------------- 11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON 1,879,334 - --------- ---------------------------------------------------------------------------------------------------------- - --------- --------------------------------------------------------------------------------------------- ------------ 12 CHECK IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES |_| - --------- --------------------------------------------------------------------------------------------- ------------ - --------- --------------------------------------------------------------------------------------------- ------------ 13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) 14.2% - --------- --------------------------------------------------------------------------------------------- ------------ - --------- --------------------------------------------------------------------------------------------- ------------ 14 TYPE OF REPORTING PERSON HC, IN - --------- --------------------------------------------------------------------------------------------- ------------ - ------------------------------------------------ ---------------------------------------------- CUSIP No. 554153106 13D Page 7 of 11 Pages - ------------------------------------------------ ---------------------------------------------- ITEM 1. SECURITY AND ISSUER This statement relates to shares of Common Stock, par value $.01 per share (the "Stock"), of Mac-Gray Corporation (the "Issuer"). The principle executive office of the Issuer is located at the following address: Mac-Gray Corporation 404 Wyman Street, Suite 400 Waltham, Massachusetts 02451-1212 ITEM 2. IDENTITY AND BACKGROUND The information regarding the persons filing this statement is as follows: (a) The name of the persons filing are: RIVER ROAD ASSET MANAGEMENT, LLC ("RRAM"), RIVER ROAD PARTNERS, LLC ("RRP"), JAMES C. SHIRCLIFF, HENRY W. SANDERS, AND R. ANDREW BECK (COLLECTIVELY, THE "FILERS"). (b) The business address of the Filers is 462 SOUTH FOURTH STREET, SUITE 1600, LOUISVILLE, KY 40202 (c) Present principal occupation or employment of the Filers and the name, principal business and address of any corporation or other in which such employment is conducted: RRAM IS A SECURITIES AND EXCHANGE COMMISSION REGISTERED INVESTMENT ADVISOR. RRP IS THE 55% OWNER AND HOLDING COMPANY OF RRAM. JAMES C. SHIRCLIFF IS A SHAREHOLDER OF RRP AND A PORTFOLIO MANAGER, CHIEF EXECUTIVE OFFICER, AND CHIEF INVESTMENT OFFICER OF RRAM. HENRY W. SANDERS IS A SHAREHOLDER OF RRP AND A PORTFOLIO MANAGER OF RRAM. R. ANDREW BECK IS A SHAREHOLDER OF RRP AND A PORTFOLIO MANAGER AND PRESIDENT OF RRAM. (d) During the last five years, none of the Filers have been convicted in a criminal proceeding (excluding traffic violations or similar misdemeanors). (e) During the last five years, none of the Filers were a party to a civil proceeding of a judicial or administrative body of competent jurisdiction and as a result of such proceeding was or is subject to a judgment, decree or final order enjoining future violations of, or prohibiting or mandating activities subject to, federal or state securities laws or finding any violation with respect to such laws. (f) Citizenship: RRAM IS ORGANIZED IN DELAWARE. RRP IS ORGANIZED IN KENTUCKY. JAMES C. SHIRCLIFF, R. ANDREW BECK, AND HENRY W. SANDERS ARE CITIZENS OF THE U.S. - ------------------------------------------------ ---------------------------------------------- CUSIP No. 554153106 13D Page 8 of 11 Pages - ------------------------------------------------ ---------------------------------------------- ITEM 3. SOURCE AND AMOUNT OF FUNDS OR OTHER CONSIDERATION The source of funds used in purchasing the Stock of the Issuer is RRAM client funds for which RRAM acts as investment advisor pursuant to an investment advisory agreement between each RRAM client and RRAM. The amount of funds used in purchasing the Stock of the Issuer is $23,051,742.15. ITEM 4. PURPOSE OF TRANSACTION The Stock was acquired for investment purposes in the ordinary course of business. As such, the Filers may purchase, hold, vote, trade, dispose, sell or otherwise deal the Stock for the benefit of its clients depending on changes in the per share price of the Stock, or related to changes in the Issuer's operations, management structure, business strategy, future acquisitions, growth prospects, liquidity, capital allocation, including use of leverage, or from the sale or merger of the Issuer. The Filers may discuss such matters with the Issuer's management or directors, other shareholders, existing or potential strategic partners or competitors, investment and finance professionals, and other investors. Such analysis and discussions may result in the Filers materially modifying its ownership of the Stock. The Filers may also exchange information with the Issuer pursuant to confidentiality or similar agreements, propose changes in its operations, governance, capitalization, or propose one or more of the actions described in sections (a) through (j) of Item 4 of Schedule 13D, all in order to enhance shareholder value. The Filers do not intend to seek control of the Issuer or participate in the day-to-day management of the Issuer, and any Reporting Person that is registered as an investment company under the Investment Company Act of 1940, as amended, will participate in such a transaction only following receipt of an exemption from the Securities and Exchange Commission under Rule 17d-1 promulgated under the Investment Company Act of 1940, as amended, if required, and in accordance with other applicable law. Certain officers of RRAM and/or the Filers did send letters on January 11, 2008 and on November 14, 2007 to Stewart G. MacDonald, Jr. and the Issuer's Board of Directors, as well as on September 17, 2007 and on September 6, 2007 to Stewart G. MacDonald, Jr. urging them to hire an independent advisory firm to explore strategic options, including the sale of the Issuer, in order to maximize shareholder value and to report its findings to all shareholders. Copies of those letters are attached as Exhibits A, B, C, and D. ITEM 5. INTEREST IN SECURITIES OF THE ISSUER (a) Based on 13,272,064 shares of Common Stock of the Issuer outstanding as of November 5, 2007, the Filers may be deemed to beneficially own 1,879,334, or 14.2%, of the Issuer's outstanding shares of Common Stock. (b) The Filers have the sole power to vote or direct the vote and to dispose or direct the disposition of 1,368,344 shares of the Stock that the Filers may be deemed to beneficially own. (c) The Filers effected the following transactions in the Stock in open market transactions on the dates indicated, and such transactions are the only transactions in the Stock by the Filers during the sixty days prior to January 3, 2008: - ------------------------------------------------ ---------------------------------------------- CUSIP No. 554153106 13D Page 9 of 11 Pages - ------------------------------------------------ ---------------------------------------------- (1) NAME (2) DATE (3) NUMBER OF SHARES (4) PRICE PER SHARE (5) HOW TRANSACTED - WHERE TRANSACTED OF COMMON STOCK OF COMMON STOCK PURCHASE OR SALE RRAM principal place RRAM 11/6/2007 400 12.36 Purchase of business RRAM principal place RRAM 11/7/2007 1,600 12.34 Purchase of business RRAM principal place RRAM 12/19/2007 10,500 11.70 Purchase of business RRAM principal place RRAM 12/20/2007 1,400 11.72 Purchase of business RRAM principal place RRAM 12/19/2007 1,840 11.66 Sale of business RRAM principal place RRAM 12/19/2007 20 11.66 Sale of business RRAM principal place RRAM 12/19/2007 2,530 11.66 Sale of business RRAM principal place RRAM 12/19/2007 90 11.66 Sale of business RRAM principal place RRAM 12/19/2007 700 11.66 Sale of business RRAM principal place RRAM 12/19/2007 510 11.66 Sale of business RRAM principal place RRAM 12/19/2007 110 11.66 Sale of business RRAM principal place RRAM 12/19/2007 1,560 11.66 Sale of business RRAM principal place RRAM 12/19/2007 90 11.66 Sale of business RRAM principal place RRAM 12/19/2007 80 11.66 Sale of business RRAM principal place RRAM 12/19/2007 260 11.66 Sale of business RRAM principal place RRAM 12/19/2007 330 11.66 Sale of business RRAM principal place RRAM 12/19/2007 2,510 11.66 Sale of business RRAM principal place RRAM 12/19/2007 450 11.66 Sale of business RRAM principal place RRAM 12/19/2007 70 11.66 Sale of business RRAM principal place RRAM 12/19/2007 30 11.66 Sale of business RRAM principal place RRAM 12/19/2007 20 11.66 Sale of business RRAM principal place RRAM 12/19/2007 700 11.66 Sale of business (d) Not applicable. (e) Not applicable. - ------------------------------------------------ ---------------------------------------------- CUSIP No. 554153106 13D Page 10 of 11 Pages - ------------------------------------------------ ---------------------------------------------- ITEM 6. CONTRACTS, ARRANGEMENTS, UNDERSTANDINGS OR RELATIONSHIPS WITH RESPECT TO SECURITIES OF THE ISSUER RRAM is the investment adviser to accounts of RRAM clients pursuant to investment advisory agreements between RRAM clients and RRAM. Each investment advisory agreement provides RRAM with the authority, among other things, to invest account funds in the Stock, to dispose of the Stock, and to file this statement on behalf of the account. Some, but not all, investment advisory agreements provide RRAM with the authority to vote for the Stock. The number of shares of Stock for which RRAM has sole voting power is reflected on RRAM's cover page. RRAM, RRP, James C. Shircliff, Henry W. Sanders and R. Andrew Beck entered into an Agreement Regarding Joint Filing of Statement on Schedule 13D or 13G dated as of January 11, 2008 (the "Agreement"). Under the Agreement, RRAM was appointed agent and attorney-in-fact to prepare or cause to be prepared, sign, file with the Securities and Exchange Commission and furnish to any other person all certificates, instruments, agreements and documents necessary to comply with section 13(d) and section 16(a) of the Securities Exchange Act of 1934, as amended. The Agreement will terminate in the event that a statement terminating the Agreement is filed with the Securities and Exchange Commission. The Agreement is attached as Exhibit E. ITEM 7. MATERIAL TO BE FILED AS EXHIBITS EXHIBIT A - Letter to Stewart G. MacDonald, Jr. and the Board of Directors dated January 11, 2008. EXHIBIT B - Letter to Stewart G. MacDonald, Jr. and the Board of Directors dated November 14, 2007. EXHIBIT C - Letter to Stewart G. MacDonald, Jr. dated September 17, 2007. EXHIBIT D - Letter to Stewart G. MacDonald, Jr. dated September 6, 2007. EXHIBIT E - Agreement Regarding Joint Filing of Statement on Schedule 13D or 13G dated January 11, 2008. - ------------------------------------------------ ---------------------------------------------- CUSIP No. 554153106 13D Page 11 of 11 Pages - ------------------------------------------------ ---------------------------------------------- SIGNATURE After reasonable inquiry and to the best of my knowledge and belief, I certify that the information set forth in this statement is true, complete and correct. January 11, 2008 RIVER ROAD ASSET MANAGEMENT, LLC, a Delaware limited liability company /S/ THOMAS D. MUELLER ------------------------------------------- Thomas D. Mueller, Chief Operations Officer and Chief Compliance Officer RIVER ROAD PARTNERS, LLC, A Kentucky limited liability company /S/ JAMES C. SHIRCLIFF ----------------------------------- James C. Shircliff, Managing Member /S/ JAMES C. SHIRCLIFF ----------------------------------- James C. Shircliff /S/ HENRY W. SANDERS ----------------------------------- Henry W. Sanders /S/ R. ANDREW BECK ----------------------------------- R. Andrew Beck
Exhibit A January 11, 2008 Mr. Stewart G. MacDonald, Jr. Chairman of the Board and Chief Executive Officer Mac-Gray Corporation 404 Wyman Street, Suite 400 Waltham, MA 02451 Dear Mr. MacDonald: Our recent meeting with the senior executives of Mac-Gray further strengthened our belief that the business model and fundamentals of the company are sound. Mac-Gray is well-positioned within the industry, trailing only Coinmach Service Corporation in terms of size. In many ways Mac-Gray represents the type of sustainable, predictable company that River Road Asset Management, LLC seeks through our investment process. When Coinmach made the unsolicited bid for Mac-Gray in November 2006, valuing the company between $13.00 and $13.75 per share, River Road agreed with Mac-Gray's Board of Directors' assessment that the bid "was grossly inadequate and deeply undervalued Mac-Gray." Combining these two companies, however, would unlock numerous synergies and clearly makes strategic sense, as demonstrated when Mac-Gray later submitted a bid for Coinmach prior to its buy-out by Babcock & Brown (details can be found in Coinmach's merger proxy). Over a year has passed since Coinmach's unsolicited bid, which still exceeds Mac-Gray's current share price. Additionally, it is quite unfortunate for long-term shareholders, like River Road, that Mac-Gray's current share price is near the company's 1997 IPO price of $11 per share (with no dividend payments), and well below its peak price of $17.25 per share reached in August 2007. Over a ten-year period, the market has assigned no value to the company's organic growth or its accretive acquisitions. River Road must ask the obvious question: why is Mac-Gray still publicly-traded? After a period of industry consolidation, the future growth prospects for the company have slowed considerably. This reduces the company's need to access the equity or debt markets. Mac-Gray should not tap the equity markets since its shares are "deeply undervalued," and any potential equity offering would dilute current shareholders. Management has wisely used cash for all of its acquisitions over the past several years, and we appreciate such discipline. Given the industry dynamics, the potential for significant organic growth is limited, and the only alternative for growth is through acquisition. But, there are few sizable acquisitions still available to Mac-Gray, and those would require additional debt financing beyond its current senior credit facility. Smaller deals, like the recent Hof acquisition, could be financed under Mac-Gray's current capital structure. While better debt financing terms may be available to a publicly-traded company versus a privately- Exhibit A held company, this one potential benefit should not be the sole reason for remaining public and subjecting shareholders to a future of poor returns. Wall Street has ignored Mac-Gray for many years. Given the company's lack of liquidity, its limited growth prospects, and its small market cap, what major brokerage house would want to be a market-maker or provide research coverage? What analyst would want to assume research coverage on Mac-Gray, given it is the only publicly-traded company in its industry? Despite its operational excellence, Mac-Gray appears unlikely to attract the attention of Wall Street. As the market fails to assign an appropriate multiple to this business, and with limited alternatives for delivering value to public shareholders, we feel Mac-Gray does not fit the profile of a publicly-traded company. As the largest independent shareholder of Mac-Gray with a 14.2% ownership stake, River Road Asset Management, LLC urges the Board of Directors to immediately hire an independent advisory firm to explore strategic options, including the sale of the company, and to disclose those findings in a timely manner to all shareholders of Mac-Gray. Sincerely, James C. Shircliff, CFA R. Andrew Beck CEO / CHIEF INVESTMENT OFFICER PRESIDENT, SENIOR PORTFOLIO MANAGER J. Justin Akin SENIOR EQUITY ANALYST CC: E. McCauley, D. Bryan, M. Tocio, J. Schiller, T. Bullock, C. Jenny Exhibit B November 14, 2007 Mr. Stewart G. MacDonald, Jr. Chairman of the Board and Chief Executive Officer Mac-Gray Corporation 404 Wyman Street, Suite 400 Waltham, MA 02451 Dear Mr. MacDonald: The principals of River Road Asset Management were disappointed that neither Mac-Gray nor its Board of Directors informed shareholders of plans to unlock the company's value after the release of third-quarter 2007 results. It has been one year since Coinmach made its unsolicited $13 - $13.75/share bid for Mac-Gray. While we agree that the bid was "grossly inadequate and deeply undervalued" the company, the offer still exceeds the company's current share price. We would appreciate if senior management disclosed their plans and timeline for action, via press release or another form of public dissemination, to unlock value for the shareholders of Mac-Gray. As the largest independent shareholder of Mac-Gray, we further wish to suggest the Board of Directors hire an independent advisory firm to explore the strategic options of Mac-Gray. We look forward to your feedback by Friday, November 30th. Sincerely, James C. Shircliff, CFA R. Andrew Beck CEO / CHIEF INVESTMENT OFFICER PRESIDENT, SENIOR PORTFOLIO MANAGER Henry W. Sanders, III, CFA EVP, SENIOR PORTFOLIO MANAGER CC: E. McCauley, D. Bryan, M. Tocio, J. Schiller, T. Bullock, C. Jenny Exhibit C September 17, 2007 Mr. Stewart G. MacDonald, Jr. Chairman of the Board and Chief Executive Officer Mac-Gray Corporation 404 Wyman Street, Suite 400 Waltham, MA 02451 Dear Mr. MacDonald: The principals of River Road appreciated your quick response to our letter. We were glad to learn that the matters previously raised will be discussed at the company's next Board of Directors meeting. We are looking forward to hearing the results of those discussions, disseminated in a manner that is fair and open to all shareholders of Mac-Gray. We hope that the Board seriously considers exploring strategic alternatives for the company. The "deeply undervalued" status of Mac-Gray doesn't benefit our clients, other shareholders, or the MacDonald family, who continues to sell into the fading strength of the company's share price following the Coinmach offer. A clear demonstration of the Board's pursuit for the best interests of Mac-Gray shareholders would be appreciated, as we believe maintaining the status quo at this "grossly inadequate" price is no longer a viable option. Sincerely, James C. Shircliff, CFA R. Andrew Beck CEO / Chief Investment Officer President, Senior Portfolio Manager Henry W. Sanders, III, CFA EVP, Senior Portfolio Manager Exhibit D September 6, 2007 Mr. Stewart G. MacDonald, Jr. Chairman of the Board and Chief Executive Officer Mac-Gray Corporation 404 Wyman Street, Suite 400 Waltham, MA 02451 Dear Mr. MacDonald: River Road Asset Management LLC ("RRAM"), on behalf of its clients, currently owns over 1.8 MM common shares of Mac-Gray Corporation ("Mac-Gray"), which represents a 14.3% ownership interest. We have been shareholders of Mac-Gray since early 2002. Our philosophy is to invest in companies trading at significant discounts to their absolute values. We seek to identify financially strong, undiscovered companies with attractive business models run by management teams that reward shareholders. Mac-Gray certainly met our investment criteria at the time of our initial investment. Historically, Mac-Gray has been a chronically under-valued security. Coinmach Services' unsolicited bid for Mac-Gray in December 2006 demonstrated the inherent value of the business. We agreed with the Board's opinion that the $13.00 - $13.75/share offer "was grossly inadequate and deeply undervalued Mac-Gray," as stated in the company's press release. Since the Board did not appear to engage Coinmach for a potentially higher bid, we feel it is now an opportune time for the Board of Directors to investigate methods to maximize value for all of the patient shareholders of Mac-Gray. We will contact you shortly to arrange a mutually convenient time to discuss these matters. Sincerely, James C. Shircliff, CFA R. Andrew Beck CEO / Chief Investment Officer President, Senior Portfolio Manager Henry W. Sanders, III, CFA EVP, Senior Portfolio Manager Exhibit E AGREEMENT REGARDING JOINT FILING OF STATEMENT ON SCHEDULE 13D OR 13G The undersigned agree to file jointly with the Securities and Exchange Commission (the "SEC") any and all statements on Schedule 13D or Schedule 13G (and any amendments or supplements thereto) required under section 13(d) of the Securities Exchange Act of 1934, as amended, in connection with purchases and sales by the undersigned of securities of any issuer, until such time as the undersigned file with the SEC a statement terminating this Agreement Regarding Joint Filing of Statement on Schedule 13D or 13G. For that purpose, the undersigned hereby constitute and appoint River Road Asset Management, LLC, a Delaware limited liability company, as their true and lawful agent and attorney-in-fact, with full power and authority for and on behalf of the undersigned to prepare or cause to be prepared, sign, file with the SEC and furnish to any other person all certificates, instruments, agreements and documents necessary to comply with section 13(d) and section 16(a) of the Securities Exchange Act of 1934, as amended, in connection with said purchases and sales, and to do and perform every act necessary and proper to be done incident to the exercise of the foregoing power, as fully as the undersigned might or could do if personally present, until such time as the undersigned file with the SEC a statement terminating this Agreement Regarding Joint Filing of Statement on Schedule 13D or 13G. Dated: January 11, 2008 RIVER ROAD ASSET MANAGEMENT, LLC By: /s/ Thomas D. Mueller ------------------------- Name: Thomas D. Mueller Title: Chief Operations Officer and Chief Compliance Officer RIVER ROAD PARTNERS, LLC By: /s/ James C. Shircliff -------------------------- Name: James C. Shircliff Title: Managing Member /s/ James C. Shircliff ---------------------- James C. Shircliff /s/ Henry W. Sanders -------------------- Henry W. Sanders /s/ R. Andrew Beck ------------------ R. Andrew Beck -----END PRIVACY-ENHANCED MESSAGE-----