424B3 1 jones424b3.txt PROSPECTUS SUPPLEMENT PROSPECTUS SUPPLEMENT DATED December 17, 2002 FILED PURSUANT To Prospectus dated May 8, 2001 RULE 424(b)(3) Registration No. 333-58236 $805,645,000 Jones Apparel Group, Inc. Jones Apparel Group Holdings, Inc. Jones Apparel Group USA, Inc. Nine West Group Inc. Zero Coupon Convertible Senior Notes due 2021 and Shares of Common Stock of Jones Apparel Group, Inc. Issuable Upon Conversion of the Notes -------------------------- The selling securityholder table appearing on pages 38-40 of the prospectus is amended and restated by this prospectus supplement.
Number of Principal amount at shares of maturity of notes common beneficially owned Percentage of stock that Percentage of that may be sold notes may be sold common stock Material Name hereby outstanding hereby(1) outstanding(2) relationship ---- ------------------- ------------- ----------- -------------- ------------ AAM/Zazove Institutional Income Fund L.P. .............................. $ 2,500,000 0.31% 24,526.25 *% None Allstate Insurance Company................. 5,000,000 0.62 49,052.50 * None Allstate Life Insurance Company............ 6,000,000 0.74 58,863.00 * None American Fidelity Assurance Company........ 475,000 0.06 4,659.99 * None American Motorist Insurance Company........ 1,146,000 0.14 11,242.83 * None Amerisure Companies/Michigan Mutual Insurance Company....................... 1,000,000 0.12 9,810.50 * None Arapahoe County Colorado................... 112,000 0.01 1,098.78 * None Arbitex Master Fund, L.P................... 10,000,000 1.24 98,105.00 * None Associated Electric & Gas Insurance Services Limited........................ 1,000,000 0.12 9,810.50 * None Aventis Pension Master Trust............... 900,000 0.11 8,829.45 * None Banc of America Securities LLC............. 5,680,000 0.71 55,723.64 * (3) Bancroft Convertible Fund, Inc............. 2,000,000 0.25 19,621.00 * None Bank Austria Cayman Island, Ltd(10)........ 5,400,000 0.67 52,976.70 * None BBT Fund, L.P.............................. 25,000,000 3.10 245,262.50 * None BC McCabe Foundation....................... 1,000,000 0.12 9,810.50 * None Bear, Stearns & Co. Inc.................... 7,500,000 0.93 73,578.75 * (4) Black Diamond Offshore Ltd................. 3,496,000 0.43 34,297.51 * None Blue Cross Blue Shield of Florida.......... 3,800,000 0.47 37,279.90 * None Boilermaker - Blacksmith Pension Trust..... 5,600,000 0.70 54,938.80 * None British Virgin Island Social Security Board................................... 85,000 0.01 833.89 * None BS Debt Income Fund - Class A.............. 30,000 0.00 294.32 * None CALAMOS(R)Convertible Fund - CALAMOS(R)Investment Trust.............. 10,650,000 1.32 104,481.83 * None CALAMOS(R)Convertible Growth and Income Fund - CALAMOS(R)Investment Trust................................... 6,100,000 0.76 59,844.05 * None CALAMOS(R)Convertible Portfolio - CALAMOS(R)Advisors Trust................ 3,584,000 0.44 35,160.83 * None
CALAMOS(R)Global Convertible Fund - CALAMOS(R)Investment Trust.............. 425,000 0.05 4,169.46 * None CapitalCare, Inc........................... 135,000 0.02 1,324.42 * None CareFirst of Maryland, Inc................. 600,000 0.07 5,886.30 * None CFFX LLC.................................. 10,000,000 1.24 98,105.00 * None CitiSAM Fund Ltd........................... 4,200,000 0.52 41,204.10 * (5) City of Albany Pension Plan................ 505,000 0.06 4,954.30 * None City of Birmingham Retirement & Relief System.................................. 4,000,000 0.50 39,242.00 * None City of Knoxville Pension System........... 1,160,000 0.14 11,380.18 * None City of New Orleans........................ 463,000 0.06 4,542.26 * None City University of New York................ 276,000 0.03 2,707.70 * None Clarica Life Insurance Co. - U.S........... 1,400,000 0.17 13,734.70 * None Coastal Convertibles Ltd................... 1,000,000 0.12 9,810.50 * None Conseco Annuity Assurance Company - Multi-Bucket Annuity Convertible Bond Fund.................................... 4,000,000 0.50 39,242.00 * None Credit Suisse First Boston Corporation..... 6,700,000 0.83 65,730.35 * None DeAm Convertible Arbitrage Fund............ 3,000,000 0.37 29,431.50 * None Delta Airlines Master Trust................ 9,900,000 1.23 97,123.95 * None Delta Pilots Disability and Survivorship Trust................................... 1,900,000 0.24 18,639.95 * None Deutsche Banc Alex Brown Inc............... 30,500,000 3.79 299,220.25 * None 1976 Distribution Trust FBO A.R. Lauder / Zinterhofer........................... 32,000 0.00 313.94 * None 1976 Distribution Trust FBO Jane A. Lauder.................................. 31,000 0.00 304.13 * None Dorinco Reinsurance Company................ 3,000,000 0.37 29,431.50 * None Double Black Diamond Offshore LDC.......... 15,738,000 1.95 154,397.65 * None Drury University........................... 185,000 0.02 1,814.94 * None Ellsworth Convertible Growth and Income Fund, Inc........................ 2,000,000 0.25 19,621.00 * None Employee Benefit Convertible Securities Fund.................................... 500,000 0.06 4,905.25 * None Fidelity Convertible Securities Fund....... 1,900,000 0.24 18,639.95 * None FreeState Health Plan, Inc................. 175,000 0.02 1,716.84 * None Genesee County Employees' Retirement System.................................. 550,000 0.07 5,395.78 * None GLG Market Neutral Fund.................... 20,000,000 2.48 196,210.00 * None Global High Yield Fund..................... 1,750,000 0.22 17,168.30 * None Goldman Sachs and Company.................. 221,000 0.03 2,168.12 * None Grady Hospital Foundation.................. 243,000 0.03 2,383.95 * None Granville Capital Corporation.............. 10,000,000 1.24 98,105.00 * None Greek Catholic Union of the USA........... 210,000 0.03 2,060.21 * None Group Hospitalization and Medical Services, Inc........................... 700,000 0.09 6,867.35 * None Healthcare Underwriters Mutual Insurance Company....................... 1,725,000 0.21 16,923.11 * None HealthNow New York, Inc.................... 175,000 0.02 1,716.84 * None HFR Master Fund, Ltd....................... 700,000 0.09 6,867.35 * None H.K. Porter Company, Inc................... 135,000 0.02 1,324.42 * None Highbridge Capital Corporation............. 35,000,000 4.34 343,367.50 * None IMF Convertible Fund....................... 900,000 0.11 8,829.45 * None Independence Blue Cross.................... 230,000 0.03 2,256.42 * None Insinger De Beaufort Umbrella Fund - IdB Global Convertible Fund 2,000,000 0.25 19,621.00 * None Investcorp, SAM Fund Ltd................... 4,200,000 0.52 41,204.10 * None Jackson County Employees' Retirement System.................................. 550,000 0.07 5,395.78 * None Jersey (IMA) Ltd........................... 2,000,000 0.25 19,621.00 * None J.P. Morgan Securities, Inc................ 10,000,000 1.24 98,105.00 (6) Julius Baer Securities Inc................. 1,680,000 0.21 16,481.64 * None
KBC Financial Products USA................. 8,000,000 0.99 78,484.00 * None Kettering Medical Center Funded Depreciation Account.................... 340,000 0.04 3,335.57 * None Key Asset Management, Inc.................. 8,000,000 0.99 78,484.00 * None Knoxville Utilities Board Retirement System.................................. 790,000 0.10 7,750.30 * None Lancer Securities Cayman LTD............... 1,500,000 0.19 14,715.75 * None Lehman Brothers Inc........................ 17,000,000 2.11 166,778.50 * None Libertyview Funds L.P...................... 8,000,000 0.99 78,484.00 * None Lincoln National Convertible Securities Fund.................................... 2,500,000 0.31 24,526.25 * None Lincoln National Global Asset Allocation Fund, Inc............................... 202,000 0.03 1,981.72 * None Lydian Overseas Partners Master Fund....... 55,000,000 6.83 539,577.50 * None Local Initiatives Support Corporation...... 126,000 0.02 1,236.12 * None Louisiana Workers' Compensation Corporation............................. 760,000 0.09 7,455.98 * None Macomb County Employees' Retirement System.................................. 2,050,000 0.25 20,111.53 * None Mag Mutual Insurance Company............... 475,000 0.06 4,659.99 * None McMahon Securities Co. L.P. ............... 945,000 0.12 9,270.92 * None Medical Liability Mutual Insurance Company................................. 55,000,000 6.83 539,577.50 * None Merrill Lynch Insurance Group, Inc......... 793,000 0.10 7,779.73 * (11) Morgan Stanley & Co........................ 5,000,000 0.62 49,052.50 * (7) Morgan Stanley Dean Witter Convertible Securities Trust........................ 5,000,000 0.62 49,052.50 * (7) Municipal Employees........................ 242,000 0.03 2,374.14 * None Museum of Fine Arts, Boston................ 99,000 0.01 971.24 * None Nabisco Holdings........................... 71,000 0.01 696.55 * None Nashville Electric Service................. 700,000 0.09 6,867.35 * None National Fuel Gas Company Retirement Plan.. 400,000 0.05 3,924.20 * None Nations Convertible Securities Fund........ 10,000,000 1.24 98,105.00 * None Nationwide Life Insurance Company.......... 40,000,000 4.96 392,420.00 * None New Orleans Firefighters Pension/Relief Fund.................................... 252,000 0.03 2,472.25 * None New York Life Insurance Company............ 18,000,000 2.23 176,589.00 * None New York Life Insurance and Annuity Corporation............................. 2,000,000 0.25 19,621.00 * None NCMIC Insurance Company.................... 650,000 0.08 6,376.83 * None Nicholas Applegate Investment Grade Co..... 13,000 0.00 127,54 * None NORCAL Mutual Insurance Company............ 850,000 0.11 8,338.93 * None Occidental Petroleum Corporation........... 471,000 0.06 4,620.75 * None OHIL Insurance Company..................... 1,000,000 0.12 9,810.50 * None Ohio Bureau of Workers' Compensation....... 300,000 0.04 2,943.15 * None Oxford, Lord Abbett & Co................... 4,500,000 0.56 44,147.25 * None Palladin Securities LLC.................... 750,000 0.09 7,357.88 * (8) Parker-Hannifin Corporation................ 322,000 0.04 3,158.98 * None Pell Rudman Trust Company.................. 4,950,000 0.61 48,561.98 * None PGEP III LLC............................... 750,000 0.09 7,357.88 * None Physicians' Reciprocal Insurers Account #7.............................. 5,500,000 0.68 53,957.75 * None Policemen and Firemen Retirement System of the City of Detroit........... 1,216,000 0.15 11,929.57 * None Port Authority of Allegheny County Retirement and Disability Allowance Plan for the Employees Represented by Local 85 of the Amalgamated Transit Union..... 5,900,000 0.73 57,881.95 * None Primex, Ltd. .............................. 425,000 0.05 4,169.46 * None Princeton Insurance........................ 3,250,000 0.40 31,884.13 * None Promutual.................................. 1,381,000 0.17 13,548.30 * None Putnam Asset Allocation Funds - Balanced Portfolio...................... 1,596,000 0.20 15,657.56 * None
Putnam Asset Allocation Funds - Conservative Portfolio.................. 1,213,000 0.15 11,900.14 * None Putnam Convertible Income - Growth Trust................................... 14,140,000 1.75 138,367.29 * None Putnam Convertible Opportunities and Income Trust............................ 412,000 0.05 4,041.93 * None Putnam Variable Trust - Putnam VT Global Asset Allocation Fund............ 414,000 0.05 4,061.55 * None Radian Guaranty Inc........................ 4,500,000 0.56 44,147.25 * None Ramius Capital Group(11)................... 3,400,000 0.42 33,355.70 * None Raytheon Master Pension Trust.............. 1,236,000 0.15 12,125.78 * None RCG Latitude Master Fund(11) .............. 1,200,000 0.15 11,772.60 * None Relative Value International Holdings, LLC. 5,000,000 0.62 49,052.50 * None Rhapsody Fund, LP.......................... 5,600,000 0.70 54,938,80 * None RJR Reynolds............................... 213,000 0.03 2,089.64 * None Salomon Smith Barney Inc................... 2,250,000 0.28 22,073.63 * (9) San Diego County Employees Retirement Association............................. 4,000,000 0.50 39,242.00 * None SCI Endowment Care Common Trust Fund - Suntrust......................... 180,000 0.02 1,765.89 * None Scudder Dividend & Growth Fund............. 780,000 0.10 7,652.19 * None SG Cowen Securities Corp................... 42,500,000 5.28 416,946.25 * None Shell Pension Trust........................ 972,000 0.12 9,535.81 * None Southern Farm Bureau Life Insurance Company................................. 2,750,000 0.34 26,978.88 * None Spear, Leeds & Kellogg..................... 5,000,000 0.62 49,052.00 * None SPT........................................ 4,480,000 0.56 43,951.04 * None State of Florida, Office of the Treasurer.. 4,500,000 0.56 44,147.25 * None State of Maryland Retirement Agency........ 5,843,000 0.73 57,322.75 * None The Cockrell Foundation.................... 150,000 0.02 1,471.58 * None The Dow Chemical Company Employees' Retirement Plan......................... 11,000,000 1.37 107,915.50 * None The Fondren Foundation..................... 355,000 0.04 3,482.73 * None The Greble Foundation...................... 213,000 0.03 2,089.64 * None The Reciprocal of America.................. 725,000 0.10 7,112.61 * None Tokai Asia Limited......................... 39,500,000 4.90 387,514.75 * None Total Fina Elf Finance U.S.A. Inc.......... 625,000 0.08 6,131.56 * None Triborough Partners QP, LLC................ 3,000,000 0.37 29,431.50 * None UBS O'Connor LLC F/B/O UBS Global Equity Arbitrage Master Limited......... 23,500,000 2.92 230,546.75 * None UBS Warburg LLC............................ 9,000,000 1.12 88,294.50 * None UBKAM Arbitrage Fund....................... 1,750,000 0.22 17,168.38 * None UBKAM Global High Yield Fund............... 1,750,000 0.22 17,168.38 * None Unifi, Inc. Profit Sharing Plan and Trust.. 545,000 0.07 5,346.72 * None United Food and Commercial Workers Local 1262 and Empoyees' Pension Fund.................................... 2,435,000 0.30 23,888.57 * None University of Rochester.................... 163,000 0.02 1,599.11 * None Value Line Convertible Fund, Inc........... 2,000,000 0.25 19,621.00 * None Van Kampen Harbor Fund..................... 14,000,000 1.74 137,347.00 * None Vopak USA, Inc. Retirement Plan............ 1,545,000 0.19 15,157.22 * None White River Securities L.L.C............... 7,500,000 0.93 73,578.75 * None Worldwide Transactions, Ltd................ 766,000 0.10 7,514.84 * None Zurich Institutional Benchmarks Master Fund LTD................................ 2,000,000 0.25 19,621.00 * None
*Less than 1%. (1) Assumes conversion of all of the holder's notes at a conversion price of 9.8105 shares of Jones Apparel Group common stock per $1,000 principal amount at maturity of the notes. This conversion price, however, will be subject to adjustment as described under "Description of the Notes--Conversion Rights." As a result, the number of shares of Jones Apparel Group common stock issuable upon conversion of the notes may increase or decrease in the future. (2) Calculated based on Rule 13d-3(d)(i) of the Exchange Act using 119,840,155 shares of common stock outstanding as of April 2, 2001. In calculating this amount, we treated as outstanding the number of shares of common stock issuable upon conversion of all of that particular holder's notes. However, we did not assume the conversion of any other holder's notes. (3) Banc of America Corporation, the parent company of Banc of America Securities LLC, is a lender under the Senior Credit Facilities. In addition, Bank of America, N.A., an affiliate of Banc of America Securities LLC, supplies us with certain cash management services and, from time to time, enters into interest rate swaps with us. (4) Bear, Stearns & Co. Inc. was an initial purchaser of the notes. The notes being sold by Bear, Stearns & Co. Inc. pursuant to this prospectus were purchased in secondary market trading. In 1999, Bear, Stearns & Co. Inc. served as financial advisor to Nine West in connection with Jones Apparel Group's acquisition of Nine West. In that capacity, Bear, Stearns & Co. Inc. rendered an opinion that, among other things, the consideration to be received in the transaction by the stockholders of Nine West was fair, from a financial point of view, to the stockholders of Nine West. Bear, Stearns & Co. Inc. was an initial purchaser of the 6 1/4% Notes in 1998 and was an initial purchaser of the 7 1/2% Notes and the 7 7/8% Notes in 1999. (5) Citibank, N.A., an affiliate of CitiSAM Fund Ltd., is a co-syndication agent for, and a lender under, the Senior Credit facilities and provides financial accommodations for some of our international operations. In addition, Citibank, N.A. supplies us with certain cash management and foreign exchange services and, from time to time, enters into interest rate swaps with us. Citibank, N.A. is the parent company of Salomon Smith Barney Inc. (6) J.P. Morgan Chase & Co., the parent company of J.P. Morgan Securities, Inc., is a lender under the Senior Credit Facilities. (7) Morgan Stanley Dean Witter, the parent company of Morgan Stanley & Co. and Morgan Stanley Dean Witter Convertible Securities Trust, served as our financial advisor in connection with the Merger. For its services as such, Morgan Stanley Dean Witter received a fee of $4,500,000. (8) Palladin Capital Group, Inc., the parent company of Palladin Securities LLC, served as our investment advisor in 1999 in connection with our acquisition of Nine West. For its services as such, Palladin Capital Group, Inc. received a fee of $9.6 million, plus reimbursement of out-of-pocket expenses. Palladin Capital Group, Inc. also served as our investment advisor in 1998 in connection with our acquisition of Sun Apparel, Inc. For its services as such, Palladin Capital Group, Inc. received a fee of $2.3 million, plus reimbursement of out-of-pocket expenses. In addition, as part of its fee for services in the Sun Apparel, Inc. acquisition, Palladin Capital Group, Inc. received $178,370 in April 1999, $227,930 in April 2000 and $5,150 in April 2001. From June 15, 1999 until February 6, 2000, Mark J. Schwartz, President and Chief Executive Officer of Palladin Capital Group, Inc., served as Chairman and Chief Executive Officer of Nine West. (9) Salomon Smith Barney Inc. was an initial purchaser of the notes. The notes being sold by Salomon Smith Barney Inc. pursuant to this prospectus were purchased in secondary market trading. Salomon Smith Barney Inc. is also a co-arranger for the Senior Credit Facilities. (10) Selling securityholder as of June 28, 2001. (11) Merrill Lynch, Pierce, Fenner & Smith Incorporated, an affiliate of Merrill Lynch Insurance Group, Inc., served as McNaughton's financial advisor in connection with the Merger. For its services as such, Merrill Lynch, Pierce, Fenner & Smith Incorporated received a fee of $5,288,297.