-----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, MeJKV+OKNL5ODLznBLIvtFNpmQ4wNLvx1NfcsAMCyli/oeUw+Dab8LjgQo4svA1p T+QxkSjy/0jzXqvWXn3Axg== 0000898822-03-000169.txt : 20030303 0000898822-03-000169.hdr.sgml : 20030303 20030303171809 ACCESSION NUMBER: 0000898822-03-000169 CONFORMED SUBMISSION TYPE: SC 13D/A PUBLIC DOCUMENT COUNT: 2 FILED AS OF DATE: 20030303 SUBJECT COMPANY: COMPANY DATA: COMPANY CONFORMED NAME: ARCH CAPITAL GROUP LTD CENTRAL INDEX KEY: 0000947484 STANDARD INDUSTRIAL CLASSIFICATION: FIRE, MARINE & CASUALTY INSURANCE [6331] IRS NUMBER: 061424716 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: SC 13D/A SEC ACT: 1934 Act SEC FILE NUMBER: 005-48508 FILM NUMBER: 03590054 BUSINESS ADDRESS: STREET 1: 20 HORSENECK LANE CITY: GREENWICH STATE: CT ZIP: 06830 BUSINESS PHONE: 2038624300 MAIL ADDRESS: STREET 1: 20 HORSENECK LANE CITY: GREENWICH STATE: CT ZIP: 06830 FORMER COMPANY: FORMER CONFORMED NAME: RISK CAPITAL RE INC DATE OF NAME CHANGE: 19950703 FORMER COMPANY: FORMER CONFORMED NAME: RISK CAPITAL HOLDINGS INC DATE OF NAME CHANGE: 19950816 FILED BY: COMPANY DATA: COMPANY CONFORMED NAME: H&F CORP INVESTORS IV BERMUDA LTD CENTRAL INDEX KEY: 0001162958 STATE OF INCORPORATION: D0 FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: SC 13D/A BUSINESS ADDRESS: STREET 1: WACHTELL LIPTON ROSEN & KATZ STREET 2: 51 WEST 52ND STREET CITY: NEW YORK STATE: NY ZIP: 10019 BUSINESS PHONE: 2124031396 MAIL ADDRESS: STREET 1: ONE MARITIME PLAZA STREET 2: STE 1200 CITY: SAN FRANCISCO STATE: CA ZIP: 94111 SC 13D/A 1 march3sched13da.txt SCHEDULE 13D/A - MARCH 3, 2003 ============================================================================== UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 SCHEDULE 13D/A Under the Securities Exchange Act of 1934 (Amendment No. 3) Arch Capital Group Ltd. -------------------------------------------------------- (Name of Issuer) Common Shares, par value $0.01 per share ------------------------------------------------------------ (Title of Class of Securities) 011576290 ------------------------------------------------ (CUSIP Number) ------------------------------------------------------------------ Richard M. Levine, Esq. Hellman & Friedman LLC One Maritime Plaza, Suite 1200 San Francisco, California 94111 (415) 788-5111 ------------------------------------------------------------------ (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 February 28, 2003 ------------------------------------------------------------------ (Date of Event Which Requires Filing of This Statement) If the filing person has previously filed a statement on Schedule 13G to report the acquisition 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 12 Pages ============================================================================== - ----------------------- --------------------- CUSIP No. 011576290 SCHEDULE 13D/A Page 2 of 11 Pages - ----------------------- --------------------- - -------------------------------------------------------------------------------- 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 - -------------------------------------------------------------------------------- 2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a) [ ] (b) [X] - -------------------------------------------------------------------------------- 3 SEC USE ONLY [ ] - -------------------------------------------------------------------------------- 4 SOURCE OF FUNDS WC - -------------------------------------------------------------------------------- 5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS 2(d) OR 2(e) [ ] - -------------------------------------------------------------------------------- 6 CITIZENSHIP OR PLACE ORGANIZATION BERMUDA - -------------------------------------------------------------------------------- 7 SOLE VOTING POWER 11,569,858* NUMBER OF ------------------------------------------------------------------ 8 SHARES SHARED VOTING POWER -0- BENEFICIALLY ------------------------------------------------------------------ 9 OWNED BY SOLE DISPOSITIVE POWER 11,569,858* EACH ------------------------------------------------------------------ 10 REPORTING SHARED DISPOSITIVE POWER -0- PERSON WITH - -------------------------------------------------------------------------------- 11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON 11,569,858* - -------------------------------------------------------------------------------- 12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES [ ] - -------------------------------------------------------------------------------- 13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) 30.6%** - -------------------------------------------------------------------------------- 14 TYPE OF REPORTING PERSON PN - -------------------------------------------------------------------------------- - -------------------------------- * 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. - ----------------------- --------------------- CUSIP No. 011576290 SCHEDULE 13D/A Page 3 of 12 Pages - ----------------------- --------------------- - -------------------------------------------------------------------------------- 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 - -------------------------------------------------------------------------------- 2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a) [ ] (b) [X] - -------------------------------------------------------------------------------- 3 SEC USE ONLY [ ] - -------------------------------------------------------------------------------- 4 SOURCE OF FUNDS WC - -------------------------------------------------------------------------------- 5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS 2(d) OR 2(e) [ ] - -------------------------------------------------------------------------------- 6 CITIZENSHIP OR PLACE ORGANIZATION BERMUDA - -------------------------------------------------------------------------------- 7 SOLE VOTING POWER 1,898,926* NUMBER OF ------------------------------------------------------------------ 8 SHARES SHARED VOTING POWER -0- BENEFICIALLY ------------------------------------------------------------------ 9 OWNED BY SOLE DISPOSITIVE POWER 1,898,926* EACH ------------------------------------------------------------------ 10 REPORTING SHARED DISPOSITIVE POWER -0- PERSON WITH - -------------------------------------------------------------------------------- 11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON 1,898,926* - -------------------------------------------------------------------------------- 12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES [ ] - -------------------------------------------------------------------------------- 13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) 6.5%** - -------------------------------------------------------------------------------- 14 TYPE OF REPORTING PERSON PN - -------------------------------------------------------------------------------- - -------------------------------- * 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. - ----------------------- --------------------- CUSIP No. 011576290 SCHEDULE 13D/A Page 4 of 12 Pages - ----------------------- --------------------- - -------------------------------------------------------------------------------- 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 - -------------------------------------------------------------------------------- 2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a) [ ] (b) [X] - -------------------------------------------------------------------------------- 3 SEC USE ONLY [ ] - -------------------------------------------------------------------------------- 4 SOURCE OF FUNDS WC - -------------------------------------------------------------------------------- 5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS 2(d) OR 2(e) [ ] - -------------------------------------------------------------------------------- 6 CITIZENSHIP OR PLACE ORGANIZATION BERMUDA - -------------------------------------------------------------------------------- 7 SOLE VOTING POWER 627,287* NUMBER OF ------------------------------------------------------------------ 8 SHARES SHARED VOTING POWER -0- BENEFICIALLY ------------------------------------------------------------------ 9 OWNED BY SOLE DISPOSITIVE POWER 627,287* EACH ------------------------------------------------------------------ 10 REPORTING SHARED DISPOSITIVE POWER -0- PERSON WITH - -------------------------------------------------------------------------------- 11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON 627,287* - -------------------------------------------------------------------------------- 12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES [ ] - -------------------------------------------------------------------------------- 13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) 2.2%** - -------------------------------------------------------------------------------- 14 TYPE OF REPORTING PERSON PN - -------------------------------------------------------------------------------- - -------------------------------- * 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. - ----------------------- --------------------- CUSIP No. 011576290 SCHEDULE 13D/A Page 5 of 12 Pages - ----------------------- --------------------- - -------------------------------------------------------------------------------- 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 - -------------------------------------------------------------------------------- 2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a) [ ] (b) [X] - -------------------------------------------------------------------------------- 3 SEC USE ONLY [ ] - -------------------------------------------------------------------------------- 4 SOURCE OF FUNDS WC - -------------------------------------------------------------------------------- 5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS 2(d) OR 2(e) [ ] - -------------------------------------------------------------------------------- 6 CITIZENSHIP OR PLACE ORGANIZATION BERMUDA - -------------------------------------------------------------------------------- 7 SOLE VOTING POWER 260,761* NUMBER OF ------------------------------------------------------------------ 8 SHARES SHARED VOTING POWER -0- BENEFICIALLY ------------------------------------------------------------------ 9 OWNED BY SOLE DISPOSITIVE POWER 260,761* EACH ------------------------------------------------------------------ 10 REPORTING SHARED DISPOSITIVE POWER -0- PERSON WITH - -------------------------------------------------------------------------------- 11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON 260,761* - -------------------------------------------------------------------------------- 12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES [ ] - -------------------------------------------------------------------------------- 13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) 0.9%** - -------------------------------------------------------------------------------- 14 TYPE OF REPORTING PERSON PN - -------------------------------------------------------------------------------- - -------------------------------- * 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. - ----------------------- --------------------- CUSIP No. 011576290 SCHEDULE 13D/A Page 6 of 12 Pages - ----------------------- --------------------- - -------------------------------------------------------------------------------- 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 - -------------------------------------------------------------------------------- 2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a) [ ] (b) [X] - -------------------------------------------------------------------------------- 3 SEC USE ONLY [ ] - -------------------------------------------------------------------------------- 4 SOURCE OF FUNDS WC - -------------------------------------------------------------------------------- 5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS 2(d) OR 2(e) [ ] - -------------------------------------------------------------------------------- 6 CITIZENSHIP OR PLACE ORGANIZATION BERMUDA - -------------------------------------------------------------------------------- 7 SOLE VOTING POWER 14,356,832* NUMBER OF ------------------------------------------------------------------ 8 SHARES SHARED VOTING POWER -0- BENEFICIALLY ------------------------------------------------------------------ 9 OWNED BY SOLE DISPOSITIVE POWER 14,356,832* EACH ------------------------------------------------------------------ 10 REPORTING SHARED DISPOSITIVE POWER -0- PERSON WITH - -------------------------------------------------------------------------------- 11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON 14,356,832* - -------------------------------------------------------------------------------- 12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES [ ] - -------------------------------------------------------------------------------- 13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) 35.6%** - -------------------------------------------------------------------------------- 14 TYPE OF REPORTING PERSON PN - -------------------------------------------------------------------------------- - -------------------------------- * 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. - ----------------------- --------------------- CUSIP No. 011576290 SCHEDULE 13D/A Page 7 of 12 Pages - ----------------------- --------------------- - -------------------------------------------------------------------------------- 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 - -------------------------------------------------------------------------------- 2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a) [ ] (b) [X] - -------------------------------------------------------------------------------- 3 SEC USE ONLY [ ] - -------------------------------------------------------------------------------- 4 SOURCE OF FUNDS WC - -------------------------------------------------------------------------------- 5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS 2(d) OR 2(e) [ ] - -------------------------------------------------------------------------------- 6 CITIZENSHIP OR PLACE ORGANIZATION BERMUDA - -------------------------------------------------------------------------------- 7 SOLE VOTING POWER 14,356,832* NUMBER OF ------------------------------------------------------------------ 8 SHARES SHARED VOTING POWER -0- BENEFICIALLY ------------------------------------------------------------------ OWNED BY SOLE DISPOSITIVE POWER 14,356,832* EACH ------------------------------------------------------------------ 10 REPORTING SHARED DISPOSITIVE POWER -0- PERSON WITH - -------------------------------------------------------------------------------- 11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON 14,356,832* - -------------------------------------------------------------------------------- 12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES [ ] - -------------------------------------------------------------------------------- 13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) 35.6%** - -------------------------------------------------------------------------------- 14 TYPE OF REPORTING PERSON CO - -------------------------------------------------------------------------------- - -------------------------------- * 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 - ----------------------- --------------------- CUSIP No. 011576290 SCHEDULE 13D/A Page 8 of 12 Pages - ----------------------- --------------------- Reference is made to the Statement on Schedule 13D filed on November 30, 2001, as amended by Amendment No. 1, filed September 23, 2002, and Amendment No. 2, filed December 18, 2002, thereto (as so amended, the "Schedule 13D"), 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. 3 to Schedule 13D shall have the meanings set forth in the Schedule 13D. This Amendment No. 3 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 that will be required by the Investors to purchase the Common Shares and Preference Shares as described under Item 4 below will be furnished from the committed capital of the Investors. ITEM 4. PURPOSES OF THE TRANSACTION. Item 4 of the Schedule 13D is hereby amended and supplemented by adding the following: On February 28, 2003, the Investors entered into a letter agreement (the "Letter Agreement") with Trident II, L.P., Marsh & McLennan Capital Professionals Fund, L.P., Marsh & McLennan Employees' Securities Company, L.P. and Marsh & McLennan Risk Capital Holdings Ltd. (collectively, the "Sellers") pursuant to which the Investors agreed to purchase from the Sellers, and the Sellers agreed to sell to the Investors, an aggregate of 1,131,065 Preference Shares and 488,935 Common Shares, for aggregate consideration of $50,220,000. The transaction contemplated by the Letter Agreement is scheduled to be completed on March 20, 2003. ITEM 5. INTEREST IN SECURITIES OF THE ISSUER. Item 5 of the Schedule 13D is hereby amended and supplemented by adding the following: - ----------------------- --------------------- CUSIP No. 011576290 SCHEDULE 13D/A Page 9 of 12 Pages - ----------------------- --------------------- (a) The Reporting Persons beneficially own Common Shares of the Company by virtue of their ownership of an aggregate of 1,605,912 Common Shares (which include an aggregate of 3,688 Common Shares issued to John L. Bunce, Jr. and David Tunnell, each of whom is an affiliate of the Reporting Persons, in consideration of their service as directors of the Company, which Common Shares are held for the benefit of the Reporting Persons), of an aggregate of 12,745,820 Preference Shares, which are convertible into Common Shares as described under Item 4, and of options to purchase an aggregate of 5,100 Common Shares, which options were issued to Messrs. Bunce and Tunnell, in consideration of their service as directors of the Company, which options are held for the benefit of the Reporting Persons. As of February 28, 2002, the Investors collectively beneficially owned an aggregate of 14,356,832 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 their relationships with the Investors, under Rule 13d-3 under the Exchange Act, each of HFCI IV Bermuda and HFI 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 and the full exercise of the options to purchase Common Shares, as of February 28, 2002, the 14,356,832 Common Shares collectively beneficially owned by the Reporting Persons would represent approximately 35.6% 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 based on the 27,586,184 Common Shares outstanding as of September 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 14,356,832 Common Shares, assuming the full conversion of the Preference Shares into Common Shares and the full exercise of the options to purchase Common Shares. Of these Common Shares, 12,745,820 Common Shares are represented by 12,745,820 Preference Shares, which even if not converted into Common Shares would in the aggregate be entitled to the voting power equivalent to 12,745,820 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) See Item 4 above. On January 1, 2003, each of Mr. Bunce and Mr. Tunnell, in consideration of his service as a director of the Company, was granted options to purchase 1,500 Common Shares at a per share price of $30.665, which options expire on January 1, 2013. 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. - ----------------------- --------------------- CUSIP No. 011576290 SCHEDULE 13D/A Page 10 of 12 Pages - ----------------------- --------------------- (e) Not applicable. ITEM 7. MATERIAL TO BE FILED AS EXHIBITS. Item 6 of the Schedule 13D is hereby amended and supplemented by adding the following: 5. Letter Agreement, dated as of February 28, 2003, by and among HFCP IV (Bermuda), L.P., H&F International Partners IV-A (Bermuda), L.P., H&F International Partners IV-B (Bermuda), L.P., H&F Executive Fund IV (Bermuda), L.P., Trident II, L.P., Marsh & McLennan Capital Professionals Fund, L.P., Marsh & McLennan Employees' Securities Company, L.P. and Marsh & McLennan Risk Capital Holdings Ltd. - ----------------------- --------------------- CUSIP No. 011576290 SCHEDULE 13D/A Page 11 of 12 Pages - ----------------------- --------------------- 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: March 3, 2003 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 - ----------------------- --------------------- CUSIP No. 011576290 SCHEDULE 13D/A Page 12 of 12 Pages - ----------------------- --------------------- 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 EX-99 3 march3ex99.txt EXHIBIT 99 TO SCHEDULE 13D/A - MARCH 3, 2003 HFCP IV (BERMUDA), L.P. H&F INTERNATIONAL PARTNERS IV-A (BERMUDA), L.P. H&F INTERNATIONAL PARTNERS IV-B (BERMUDA), L.P. H&F EXECUTIVE FUND IV (BERMUDA), L.P. 41 Cedar Avenue Hamilton HM 12 Bermuda February 28, 2003 To the Sellers listed on Schedule A, c/o MMC Capital, Inc., as Manager 20 Horseneck Lane Greenwich, CT 06830 Re: Purchase and Sale of Shares Ladies and Gentlemen: In consideration of the agreements and obligations contained in this letter agreement (this "Agreement"), HFCP IV (Bermuda), L.P., H&F International Partners IV-A (Bermuda), L.P., H&F International Partners IV-B (Bermuda), L.P., H&F Executive Fund IV (Bermuda), L.P. ("Buyers," and each a "Buyer") and the sellers listed on Schedule A ("Sellers," and each, a "Seller") agree as follows: 1. PURCHASE AND SALE. At the Closing, each Seller shall sell to the Buyers, and the Buyers shall purchase from such Seller, those Common Shares, par value $0.01 (the "Common Shares"), and those Series A Convertible Preference Shares, par value $0.01 (the "Preference Shares," and together with the Common Shares, the "Shares"), of Arch Capital Group Ltd., a Bermuda corporation (the "Company"), set forth opposite the name of such Seller on Schedule A, for an aggregate purchase price of $50,220,000 (the "Transaction," and such amount, the "Purchase Price"). The closing of the Transaction (the "Closing") shall take place at the offices of MMC Capital, Inc., at 20 Horseneck Lane, Greenwich, CT 06830 at 10:00 a.m. on March 20, 2003. At the Closing, (a) each Seller shall deliver to the Buyers a certificate or certificates representing the Shares set forth opposite the name of such Seller on Schedule A, together with stock powers duly executed in blank or duly executed instruments of transfer, and (b) the Buyers shall deliver to the Sellers, via wire transfer of immediately available funds to such account or accounts as the Sellers shall designate in writing prior to the Closing, an amount equal to the Purchase Price. 2. REPRESENTATIONS AND WARRANTIES OF SELLERS. (a) Each Seller represents and warrants to the Buyers that such Seller is the sole record and beneficial owner of the Shares set February 28, 2003 Page 2 forth opposite the name of such Seller on Schedule A, and at Closing, such Seller will deliver to the Buyers such Shares, free and clear of any lien or security interest of any kind whatsoever. (b) Each Seller has all requisite power and authority to execute and deliver this Agreement, to perform its obligations under this Agreement, and to consummate the Transaction. The execution, delivery and performance of this Agreement by each Seller and the consummation by each Seller of the Transaction have been duly authorized by all necessary limited partnership action and no other proceedings on the part of such Seller are necessary to authorize this Agreement or to consummate the Transaction. This Agreement has been duly executed and delivered by each Seller and (assuming the due authorization, execution and delivery by each Buyer), constitutes the legal, valid and binding obligation of such Seller enforceable against such Seller in accordance with its terms. (c) The execution, delivery and performance by each Seller of this Agreement and the consummation of the Transaction require no action by or in respect of, or filing with, any governmental body, agency or official. (d) Each Seller acknowledges that: (i) the Buyers may be in possession of material, nonpublic information regarding the Company, its financial condition, results of operations, business, properties, assets, liabilities, management, projections, reserves, appraisals and plans, proposals and prospects; (ii) such information may be materially adverse to such Seller's interests; and (iii) if such Seller were in possession of some or all of such information such Seller might not be willing to sell any or all of the Shares pursuant to the Transaction or would have a materially different view of the benefits of the Transaction. Each Seller also acknowledges and agrees that the Buyers shall have no obligation to disclose to such Seller any of the information referred to in the preceding sentence. Each Seller further acknowledges that such Seller has conducted its own investigation, to the extent that such Seller has determined necessary or desirable, regarding the information described in the first sentence of this paragraph. Each Seller hereby, on its own behalf and on behalf of its affiliates and its and their respective successors and assigns, irrevocably waives and renounces any and all claims of any nature whatsoever it may have or acquire against Buyer, its directors, officers, employees, representatives, or any of their respective affiliates and their respective heirs, successors and assigns, based on non-disclosure, deceptive trade practices, other laws or otherwise, and acknowledges that neither the Buyers nor any of their respective directors, officers, employees, representatives or any of their respective affiliates have made any representation or warranty, whether express or implied, of any kind or character in respect of or in connection with the Transaction, except as set forth in this Agreement. 3. REPRESENTATIONS AND WARRANTIES OF BUYERS. (a) Each Buyer has all requisite power and authority to execute and deliver this Agreement, to perform its obligations under this Agreement, and to consummate the Transaction. The execution, delivery and performance of this Agreement by each Buyer and the consummation by each Buyer of the Transaction have been duly authorized by all necessary limited partnership action and no other proceedings on the part of such Buyer are necessary to authorize this Agreement or to consummate the Transaction. This Agreement has been duly executed and delivered by each Buyer and (assuming the due authorization, execution and delivery by each Buyer), constitutes the legal, valid and binding obligation of such Buyer enforceable against such Buyer in accordance with its terms. (b) The execution, delivery and performance by each Buyer of this Agreement and the consummation of the Transaction require no action by or in respect of, or filing with, any governmental body, agency or official other than filings with and approvals of applicable United States state insurance regulatory bodies. (c) The Buyers represent and warrant to Sellers that the Buyers have and will have at Closing immediately available cash in the amount of the Purchase Price. (d) The Buyers acknowledge that Sellers are not transferring any rights Sellers may have under the terms of the Subscription Agreement, dated as of October 24, 2001, as amended, November 20, 2001 and January 3, 2002, pursuant to this Agreement. 4. MISCELLANEOUS. (a) This Agreement shall be governed by and construed in accordance with the laws of the State of New York, without regard for principles of conflicts of laws. This Agreement shall inure solely to the benefit of and be binding upon the parties and their respective successors and assigns. (b) This Agreement may be executed in any number of counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument. February 28, 2003 Page 3 (c) This Agreement contains the entire agreement between the parties concerning the subject matter of this Agreement and supersedes all prior agreements, understandings, discussions, negotiations and undertakings, whether written or oral, between the parties with respect thereto. * * * February 28, 2003 Page 4 Please acknowledge your approval and acceptance of the matters contained in this letter by executing and dating this copy of the letter and returning it to our attention at the above address. An additional copy of this letter has been included for your records. Very truly yours, HFCP IV (BERMUDA), L.P., H&F INTERNATIONAL PARTNERS IV-A (BERMUDA), L.P., H&F INTERNATIONAL PARTNERS IV-B (BERMUDA), L.P., 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 February 28, 2003 Page 5 Accepted and agreed as of the date first written above: TRIDENT II, L.P., MARSH & MCLENNAN CAPITAL PROFESSIONALS FUND, L.P., MARSH & MCLENNAN EMPLOYEES' SECURITIES COMPANY, L.P., By: MMC Capital, Inc., in each case, as Manager, By: /s/ David J. Wermuth ------------------------- Name: David J. Wermuth Title: Principal MARSH & MCLENNAN RISK CAPITAL HOLDINGS, LTD., By: /s/ David J. Wermuth ------------------------- Name: David J. Wermuth Title: Assistant Secretary SCHEDULE A Stock Certificate/Account Preference Shares Common Shares Price ($31 per ------------------------- ----------------- ------------- -------------- - ------------------------------------------------------------------------------------------------------------------------------------ Trident II, L.P. ACP0061 903,277 $28,001,587 c/o Maples & Calder P.O. Box 309 ACP0021 38,029 1,178,899 Ugland House, South Church Street ACP0096 122,942 3,811,202 ------------------ George Town, Grand Cayman, Cayman $32,991,688 Islands ------------------ Copy to: MMC Capital, Inc., as Manager 20 Horseneck Lane Greenwich, CT 06830 Attention: Richard A. Goldman - ------------------------------------------------------------------------------------------------------------------------------------ Marsh & McLennan Employees' ACP0058 28,969 $ 898,039 Securities Company, L.P. c/o Maples & Calder P.O. Box 309 ACP0022 1,071 33,201 Ugland House, South Church Street ACP0097 3,461 107,291 ------------------ George Town, Grand Cayman, Cayman $1,038,531 Islands ------------------ Copy to: MMC Capital, Inc., as Manager 20 Horseneck Lane Greenwich, CT 06830 Attention: Richard A. Goldman - ------------------------------------------------------------------------------------------------------------------------------------ Marsh & McLennan Capital ACP0062 28,809 $893,079 Professionals Fund, L.P. c/o Maples & Calder ACG2100 521 16,151 P.O. Box 309 ACP0023 1,065 33,015 Ugland House, South Church Street ACP0098 3,442 106,702 ------------------ George Town, Grand Cayman, Cayman $1,048,947 Islands ------------------ Copy to: MMC Capital, Inc., as Manager 20 Horseneck Lane Greenwich, CT 06830 Attention: Richard A. Goldman - ------------------------------------------------------------------------------------------------------------------------------------ ------------------ Marsh & McLennan Risk Capital Merrill Lynch 488,414 $15,140,834 Holdings, Ltd. Account ------------------ 1166 Avenue of the Americas New York, NY 10036 Attention: Mark J. Dallara - ------------------------------------------------------------------------------------------------------------------------------------ Total $50,220,000 ==================
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