SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
SCHEDULE TO
(Rule 14d-100)
TENDER OFFER STATEMENT UNDER SECTION 14(d)(1) OR 13(e)(1)
OF THE SECURITIES EXCHANGE ACT OF 1934
(Amendment No. 4)
UGLY DUCKLING CORPORATION
-------------------------
(Name of Subject Company (Issuer))
UDC ACQUISITION CORP.
---------------------
(Offeror and Affiliate of Issuer)
UDC HOLDINGS CORP.
------------------
(Offeror and Affiliate of Issuer)
ERNEST C. GARCIA II
-------------------
(Offeror and Affiliate of Issuer)
GREGORY B. SULLIVAN
-------------------
(Offeror and Affiliate of Issuer)
COMMON STOCK
------------
(Title of Class of Securities)
903512 10 1
-----------
(CUSIP Number of Class of Securities)
Steven P. Johnson, Esq. With Copy to:
2575 East Camelback Road Christopher D. Johnson
Suite 700 Squire, Sanders & Dempsey L.L.P.
Phoenix, Arizona 85016 40 North Central Avenue, Suite 2700
(602) 778-5003 Phoenix, Arizona 85004
(602) 528-4046
(Name, Address and Telephone Numbers of Person Authorized to Receive Notices
and Communications on Behalf of the Filing Person)
CALCULATION OF FILING FEE
Transaction value (1) Amount of Filing Fee (2)
--------------------- ------------------------
$16,845,160 $3,369.03
(1) Solely for the purpose of calculating the filing fee and based on
4,772,000 shares of common stock (which is the aggregate maximum number of
shares of common stock subject to the tender) at $3.53 per share.
(2) Fee calculated in accordance with Rule 0-11(a)(4) and Rule 0-11(b)(2)
under the Securities Exchange Act of 1934, as amended.
[X] Check box if any part of the fee is offset as provided by Rule 0-11(a)(2)
and identify the filing with which the offsetting fee was previously paid.
Identify the previous filing by registration statement number, or the Form or
Schedule and the date of its filing.
Amount Previously Paid: $2,439.62 Filing Party: Ernest C. Garcia II
1
Form or Registration No.: Schedule TO-T Date Filed: November 26, 2001
[__] Check the box if the filing relates solely to preliminary communications
made before the commencement of a tender offer.
Check the appropriate boxes below to designate any transactions to which
the statement relates:
[X] third-party tender offer subject to Rule 14d-1.
[ ] issuer tender offer subject to rule 13e-4.
[X] going-private transaction subject to Rule 13e-3.
[X] amendment to Schedule 13D under Rule 13d-2.
Check the following box if the filing if a final amendment reporting the results
of the tender offer: [__]
2
Cusip No. 903512 10 1
1. Names of Reporting Persons. I.R.S. Identification Nos. of above
persons (entities only).
UDC Acquisition Corp., I.R.S. Identification No.
- --------------------------------------------------------------------------------
2. Check the Appropriate Box if a Member of a Group
(a) [X]
(b) [ ]
- --------------------------------------------------------------------------------
3. SEC Use Only
- --------------------------------------------------------------------------------
4. Source of Funds
AF
- --------------------------------------------------------------------------------
5. Check if Disclosure of Legal Proceedings Is Required Pursuant
to Items 2(d) or 2(e): [ ]
- --------------------------------------------------------------------------------
6. Citizenship or Place of Organization
Delaware
- --------------------------------------------------------------------------------
Number of 7. Sole Voting Power:-0-
Shares
Beneficially ------------------------------------------------------------------
Owned by 8. Shared Voting Power:-0-
Each
Reporting ------------------------------------------------------------------
Person With 9. Sole Dispositive Power:-0-
------------------------------------------------------------------
10. Shared Dispositive Power: -0-
- --------------------------------------------------------------------------------
11. Aggregate Amount Beneficially Owned by Each Reporting Person -0-
- --------------------------------------------------------------------------------
12. Check if the Aggregate Amount in Row (11) Excludes Certain Shares:
[ ]
- --------------------------------------------------------------------------------
13. Percent of Class Represented by Amount in Row (11): -0-
- --------------------------------------------------------------------------------
14. Type of Reporting Person
CO
3
Cusip No. 903512 10 1
1. Names of Reporting Persons. I.R.S. Identification Nos. of above
persons (entities only).
UDC Holdings Corp., I.R.S. Identification No.
- --------------------------------------------------------------------------------
2. Check the Appropriate Box if a Member of a Group
(a) [X]
(b) [ ]
- --------------------------------------------------------------------------------
3. SEC Use Only
- --------------------------------------------------------------------------------
4. Source of Funds
AF
- --------------------------------------------------------------------------------
5. Check if Disclosure of Legal Proceedings Is Required Pursuant to
Items 2(d) or 2(e): [ ]
- --------------------------------------------------------------------------------
6. Citizenship or Place of Organization
Delaware
- --------------------------------------------------------------------------------
Number of 7. Sole Voting Power:-0-
Shares
Beneficially ------------------------------------------------------------------
Owned by 8. Shared Voting Power:-0-
Each
Reporting ------------------------------------------------------------------
Person With 9. Sole Dispositive Power:-0-
------------------------------------------------------------------
10. Shared Dispositive Power: -0-
- --------------------------------------------------------------------------------
11. Aggregate Amount Beneficially Owned by Each Reporting Person -0-
- --------------------------------------------------------------------------------
12. Check if the Aggregate Amount in Row (11) Excludes Certain Shares:
[ ]
- --------------------------------------------------------------------------------
13. Percent of Class Represented by Amount in Row (11): -0-
- --------------------------------------------------------------------------------
14. Type of Reporting Person
CO
4
Cusip No. 903512 10 1
Names of Reporting Persons. I.R.S. Identification Nos. of above
persons (entities only).
1. Ernest C. Garcia II
- --------------------------------------------------------------------------------
2. Check the Appropriate Box if a Member of a Group (See
Instructions)
(a) [X]
(b) [ ]
- --------------------------------------------------------------------------------
3. SEC Use Only
- --------------------------------------------------------------------------------
4. Source of Funds:
PF, OO, BK
- --------------------------------------------------------------------------------
5. Check if Disclosure of Legal Proceedings Is Required Pursuant to
Items 2(d) or 2(e): [ ]
- --------------------------------------------------------------------------------
6. Citizenship or Place of Organization: United States of America
- --------------------------------------------------------------------------------
Number of 7. Sole Voting Power: 7,482,200 (includes options to purchase
Shares 40,000 shares)
Beneficially ------------------------------------------------------------------
Owned by 8. Shared Voting Power: -0-
Each
Reporting ------------------------------------------------------------------
Person With 9. Sole Dispositive Power: 7,482,200 (includes options to
purchase 40,000 shares)
------------------------------------------------------------------
10. Shared Dispositive Power: -0-
- --------------------------------------------------------------------------------
11. Aggregate Amount Beneficially Owned by Each Reporting Person:
7,482,200 (includes options to purchase 40,000 shares)
- --------------------------------------------------------------------------------
12. Check if the Aggregate Amount in Row (11) Excludes Certain Shares:
[ ]
- --------------------------------------------------------------------------------
13. Percent of Class Represented by Amount in Row (11): approximately
61.0%
- --------------------------------------------------------------------------------
14. Type of Reporting Person: IN
5
Cusip No. 903512 10 1
1. Names of Reporting Persons. I.R.S. Identification Nos. of above
persons (entities only).
Gregory B. Sullivan
- --------------------------------------------------------------------------------
2. Check the Appropriate Box if a Member of a Group
(a) [X]
(b) [ ]
- --------------------------------------------------------------------------------
3. SEC Use Only
- --------------------------------------------------------------------------------
4. Source of Funds: PF, OO, AF
- --------------------------------------------------------------------------------
5. Check if Disclosure of Legal Proceedings Is Required Pursuant to
Items 2(d) or 2(e): [ ]
- --------------------------------------------------------------------------------
6. Citizenship or Place of Organization: United States of America
- --------------------------------------------------------------------------------
Number of 7. Sole Voting Power: 450,800 (includes options to purchase
Shares 391,000 shares)
Beneficially ------------------------------------------------------------------
Owned by 8. Shared Voting Power:-0-
Each
Reporting ------------------------------------------------------------------
Person With 9. Sole Dispositive Power: 450,800 (includes options to purchase
391,000 shares)
------------------------------------------------------------------
10. Shared Dispositive Power: -0-
- --------------------------------------------------------------------------------
11. Aggregate Amount Beneficially Owned by Each Reporting Person:
450,800 (includes options to purchase 391,000 shares)
- --------------------------------------------------------------------------------
12. Check if the Aggregate Amount in Row (11) Excludes Certain Shares:
[X]
- --------------------------------------------------------------------------------
13. Percent of Class Represented by Amount in Row (11): approximately
3.7%
- --------------------------------------------------------------------------------
14. Type of Reporting Person: IN
6
This Amendment No. 4 amends and supplements the Tender Offer Statement and
Schedule 13e-3 Transaction Statement filed under cover of Schedule TO ("Original
Statement") initially filed with the Securities and Exchange Commission (the
"SEC") on November 26, 2001, as amended and supplemented by: (i) Amendment No.
1, filed with the SEC on December 4, 2001; (ii) Amendment No. 2, filed with the
SEC on December 10, 2001; and (iii) Amendment No. 3, filed with the SEC on
December 11, 2001. Capitalized terms not defined herein shall have the same
meaning as in the Original Statement and Amendment Nos. 1-3.
ITEMS 1 THROUGH 11.
As permitted by General Instruction F to Schedule TO, the information set
forth in the entire Amended and Restated Offer to Purchase, dated December 13,
2001 ("Amended Offer to Purchase"), and the Amended and Restated Letter of
Transmittal, attached hereto as Exhibits (a)(1)(v) and (a)(1)(vi), respectively,
is incorporated into this Amendment No. 4 to Tender Offer Statement on Schedule
TO.
ITEM 12. MATERIAL TO BE FILED AS EXHIBITS.
Exhibit No. Description
- ----------- -----------
(a)(1)(v) Amended and Restated Offer to Purchase, dated December 13, 2001.*
(a)(3)(ii) Amendment No. 2 to Schedule 14D-9 filed on December 13, 2001.(1)
(b)(ii) Form of Promissory Note by UDC Holdings Corp., in favor of Verde
Investments, Inc.*
(d)(xi) Memorandum of Understanding, dated December 9, 2001.*
(e) None.
(f) None.
(g) None.
(h) None.
ITEM 13. INFORMATION REQUIRED BY SCHEDULE 13E-3
A successful result of the Amended Offer to Purchase would be viewed as
having the reasonable likelihood of producing, either directly or indirectly,
one or more of the effects set forth in Rule 13e-3(a)(3)(ii) under the Exchange
Act. Specifically, this transaction may facilitate or result in a transaction
that would cause the Common Stock of the Company to be held of
- ----------
* Filed herewith.
(1) Incorporated by reference to Amendment No. 2 to Schedule 14D-9 filed by Ugly
Duckling Corporation on December 13, 2001.
7
record by fewer than 300 persons or to be delisted from the Nasdaq National
Market. As such, this transaction is being filed under Schedule 13E-3 and the
following items are addressed in addition to any items previously addressed
under Schedule TO.
ITEM 2 OF SCHEDULE 13E-3.
(d) Dividends. The information contained in Section 9 of the Amended Offer
to Purchase is incorporated herein by reference.
(e) Prior Public Offerings. Not applicable.
(f) Prior Stock Purchases. The information contained in Section 12 of the
Amended Offer to Purchase is incorporated herein by reference.
ITEM 3 OF SCHEDULE 13E-3.
(b) Business and Background of Entities. The information contained in Section 5
of the Amended Offer to Purchase is incorporated herein by reference.
(c) Business and Background of Natural Persons. The information contained
in Section 5 of the Amended Offer to Purchase is incorporated herein by
reference.
ITEM 4 OF SCHEDULE 13E-3.
(c) Different Terms. Mr. Garcia and Mr. Sullivan will not tender their
Shares in the Offer.
(d) Appraisal Rights. The information contained under the caption "SPECIAL
FACTORS" of the Amended Offer to Purchase is incorporated by reference.
(e) Provisions for Unaffiliated Security Holders. None.
(f) Eligibility for Listing or Trading. Not applicable.
ITEM 5 OF SCHEDULE 13E-3.
(c) Negotiations or Contracts. The information contained under the caption
"SPECIAL FACTORS" and in Section 10 of the Amended Offer to Purchase is
incorporated herein by reference.
ITEM 7 OF SCHEDULE 13E-3.
(a)-(d) The information contained in the Amended Offer to Purchase under the
captions "INTRODUCTION" and "SPECIAL FACTORS" is incorporated herein by
reference.
ITEM 8 OF SCHEDULE 13E-3.
(a)-(f) The information set forth in the Amended Offer to Purchase under the
captions "SPECIAL FACTORS" is incorporated herein by reference.
8
ITEM 9 OF SCHEDULE 13E-3.
(a) Report, Opinion or Appraisal. The information set forth in the Amended
Offer to Purchase under the caption "SPECIAL FACTORS" is incorporated herein
by reference.
(b) Preparer and Summary of the Report, Opinion or Appraisal. The information
set forth in the Amended Offer to Purchase under the caption "SPECIAL FACTORS"
is incorporated herein by reference.
(c) Availability of Documents. The information set forth in the Amended Offer
to Purchase under the caption "SPECIAL FACTORS" is incorporated herein by
reference.
ITEM 10 OF SCHEDULE 13E-3.
(c) Expenses. The information contained in Section 8 of the Amended Offer
to Purchase is incorporated herein by reference.
ITEM 12 OF SCHEDULE 13E-3.
(d) Intent to Tender or Vote in a Going-Private Transaction. The information
set forth in the Amended Offer to Purchase under the captions "INTRODUCTION" and
"SPECIAL FACTORS" is incorporated herein by reference.
(e) Recommendations of Others. The information set forth in the Amended Offer
to Purchase under the captions "INTRODUCTION" and "SPECIAL FACTORS" is
incorporated herein by reference.
ITEM 13 OF SCHEDULE 13E-3.
(a) Financial Information. In accordance with the Instructions to Item 13, the
disclosure materials disseminated to security holders contains the summarized
financial information required by Item 1010(c) of Regulation M-A instead of the
financial information required by Item 1010(a) and (b). The information
contained in Section 9 and in Appendix A of the Amended Offer to Purchase is
incorporated herein by reference.
ITEM 14 OF SCHEDULE 13E-3.
(b) Employees and Corporate Assets. Directors, officers and regular employees
of the Company and its affiliates other than Mr. Garcia and Mr. Sullivan will
not be contacting holders by mail, telephone, telex, telegram messages, mailgram
messages, datagram messages or in person regarding the Offer. The Company may
request brokers, dealers and other nominees to forward the Amended Offer to
Purchase and related materials to be beneficial owners of Shares.
9
SIGNATURES
After due 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.
Date: December 12, 2001
UDC Holdings Corp.
By: /s/ Ernest C. Garcia
---------------------------------------
Name: Ernest C. Garcia
-------------------------------------
Title: President
------------------------------------
UDC Acquisition Corp.
By: /s/ Ernest C. Garcia
---------------------------------------
Name: Ernest C. Garcia
-------------------------------------
Title: President
------------------------------------
Ernest C. Garcia II
/s/ Ernest C. Garcia II
--------------------------------------------
Gregory B. Sullivan
/s/ Gregory B. Sullivan
--------------------------------------------
1
EXHIBITS
Exhibit No. Description
- ----------- -----------
(a)(1)(i) Offer to Purchase, dated November 26, 2001.(1)
(a)(1)(ii) Letter of Transmittal with Substitute Form W-9.(1)
(a)(1)(iii) Notice of Guaranteed Delivery.(1)
(a)(1)(iv) Amended and Restated Offer to Purchase, dated December 11,
2001.(2)
(a)(1)(v) Amended and Restated Offer to Purchase, dated December 13,
2001.*
(a)(1)(vi) Amended and Restated Letter of Transmittal.+
(a)(1)(vii) Amended and Restated Notice of Guaranteed Delivery.+
(a)(1)(viii) Notice to Shareholders.+
(a)(2) None.
(a)(3)(i) See Offer to Purchase, dated November 26, 2001, attached
hereto as Exhibit (a)(1)(i).
(a)(3)(ii) Schedule 14D-9 filed on December 7, 2001.(3)
(a)(3)(iii) Amendment No. 1 to Schedule 14D-9 filed on December 10,
2001.(4)
(a)(3)(iv) Amendment No. 2 to Schedule 14D-9 filed on December 13,
2001.(5)
(a)(4) Not applicable.
(a)(5)(i) Form of Letter to Brokers, Dealers, Commercial Banks, Trust
Companies and Other Nominees.(1)
(a)(5)(ii) Form of Letter to Clients for use by Brokers, Dealers,
Commercial Banks, Trust Companies and Other Nominees.(1)
- ----------
(1) Previously filed on Schedule TO filed by Ernest C. Garcia II on November 26,
2001.
(2) Previously filed on Amendment No. 3 to Schedule TO-T/A by UDC Acquisition
Corp., UDC Holdings Corp., Ernest C. Garcia II and Gregory B. Sullivan, on
December 11, 2001.
* Filed herewith.
+ To be filed by amendment.
(3) Incorporated by reference to Schedule 14D-9 filed by Ugly Duckling
Corporation on December 7, 2001.
(4) Incorporated by reference to Amendment No. 1 to Schedule 14D-9 by Ugly
Duckling Corporation on December 10, 2001.
(5) Incorporated by reference to Amendment No. 2 to Schedule 14D-9 filed by Ugly
Duckling Corporation on December 13, 2001.
2
0(a)(5)(iii) Form W-9 Guidelines.(1)
(a)(5)(iv) Summary Advertisement as published in the Wall Street Journal
on November 26, 2001.(1)
(a)(5)(v) Revised Letter to Brokers, Dealers, Commercial Banks, Trust
Companies and Other Nominees.+
(a)(5)(vi) Revised Letter to Clients for use by Brokers, Dealers,
Commercial Banks, Trust Companies and Other Nominees.+
(b)(i) Business Loan Agreement, dated October 9, 2001, by and
among Ernest C. Garcia II, Elizabeth Joanne Garcia, Verde
Investments, Inc. and Bank One Arizona, N.A.(6)
(b)(ii) Form of Promissory Note by UDC Holdings Corp., in favor of
Verde Investments, Inc.*
(d)(i) Proxy Statement for 2001 Annual Meting of Ugly Duckling
Corporation; "Proposal to be Voted On - Issuance of
Warrants."(7)
(d)(ii) Stock Purchase Agreement, dated January 9, 2001, by and among
Harris Associates, L.P., Ernest C. Garcia, II and Cygnet
Capital Corporation.(8)
(d)(iii) Stock Purchase Agreement, dated January 9, 2001, by and among
Harris Associates, L.P., Ernest C. Garcia, II and Cygnet
Capital Corporation.(8)
(d)(iv) Loan Agreement, dated January 11, 2001, by and between Ugly
Duckling Corporation and Verde Investments, Inc.(8)
(d)(v) Form of Warrant Agreement, dated July 25, 2001, by and between
Ugly Duckling Corporation and Verde Investments, Inc.(8)
(d)(vi) Stock Pledge Agreement, dated November 28, 2000, by and
between Ernest C. Garcia, II, Joanne E. Garcia, Arbco
Associates, L.P. and Kayne Anderson Capital Income Partners,
L.P.(8)
(d)(vii) Non-Qualified Stock Option Agreement, dated March 2, 1999,
between Ernest C. Garcia, II and Ugly Duckling Corporation.(8)
(d)(viii) Letter Agreement, dated March 15, 2001, by and among Cygnet
Capital
- ----------
+ To be filed by amendment.
(6) Previously filed on Amendment No. 1 to Schedule 13E-3 by Ernest C. Garcia II
on October 31, 2001.
* Filed herewith.
(7) Incorporated by reference to Proxy Statement on Form DEF 14A filed by Ugly
Duckling Corporation on November 13, 2001.
(8) Previously filed on Schedule 13E-3 by Ernest C. Garcia II on January 25,
2001
3
Corporation, Arbco Associates, L.P. and Kayne Anderson
Non-Traditional Investments, L.P.(9)
(d)(ix) Stock Pledge Agreement, dated March 15, 2001, by and among
Ernest C. Garcia, II, Elizabeth Joanne Garcia, Arbco
Associates, L.P. and Kayne Anderson Non-Traditional
Investments, L.P.(9)
(d)(x) Agreement and Plan of Merger, dated December 10, 2001, by
and among UDC Acquisition Corp., UDC Holdings Corp.,
Gregory B. Sullivan, Ernest C. Garcia II and Ugly Duckling
Corporation.(10)
(d)(xi) Memorandum of Understanding, dated December 9, 2001.*
(e) None.
(f) None.
(g) None.
(h) None.
- ----------
(9) Previously filed on Amendment No. 5 to Schedule 13D by Ernest C. Garcia II
on April 2, 2001.
(10) Incorporated by reference to Exhibit (5) to Amendment No. 1 to Schedule
14D-9 filed by Ugly Duckling Corporation on December 10, 2001.
* Filed herewith.
4