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FORM 4
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[ ] CHECK THIS BOX IF NO LONGER OMB APPROVAL
SUBJECT TO SECTION 16. FORM 4 OR --------------------------------
FORM 5 OBLIGATIONS MAY CONTINUE. OMB NUMBER: 3235-0287
SEE INSTRUCTION 1(B). EXPIRES: SEPTEMBER 30, 1998
(PRINT OR TYPE RESPONSES) ESTIMATED AVERAGE BURDEN
HOURS PER RESPONSE..........0.5
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U.S. SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
STATEMENT OF CHANGES IN BENEFICIAL OWNERSHIP
Filed pursuant to Section 16(a) of the Securities Exchange Act of 1934, Section 17(a) of the Public Utility
Holding Company Act of 1935 or Section 30(f) of the Investment Company Act of 1940
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1. Name and Address of Reporting Person* 2. Issuer Name and Ticker or Trading Symbol 6. Relationship of Reporting
Person to Issuer
Winokur, Herbert S., Jr. The WMF Group, Ltd. (WMFG) (Check all applicable)
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(Last) (First) (Middle) 3. IRS or Social 4. Statement for Month/Year [X] Director [X] 10% Owner
Security Number [ ]Officer [ ]Other
of Reporting (give title (specify title
30 East Elm Street Person below) below)
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(Street)
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Greenwich CT 06830 5. If Amendment, 7. Individual or Joint/Group Filing
- --------------------------------------- Date of Original (Check Applicable Line)
(City) (State) (Zip) (Month/Year)
[ ] Form filed by One Reporting Person
December 1998 [X] Form filed by More than One Reporting Person
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TABLE I - NON-DERIVATIVE SECURITIES ACQUIRED, DISPOSED OF, OR BENEFICIALLY OWNED
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1. Title of Security 2. Trans- 3. Trans- 4. Securities Acquired (A) 5. Amount of 6. Ownership Form: 7. Nature of
(Instr.3) action action Code or Disposed of (D) Securities Direct (D) or Indirect
Date (Instr. 8) (Instr. 3,4 and 5) Beneficially Indirect (I) Beneficial
Owned at End of (Instr. 4) Ownership
(Month/ Month (Instr. 4)
Day/Year)
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Code V Amount (A) or (D) Price (Instr. 3 and 4)
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*If the form is filed by more than one reporting person, SEE Instruction 4(b)(v). SEC 1474 (7/96)
Reminder: Report on a separate line for each class of securities beneficially owned directly or indirectly. (Over)
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FORM 4 (continued)
Table II - Derivative Securities Acquired, Disposed of, or Beneficially Owned
(E.G., puts, calls, warrants, options, convertible securities)
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1. Title of 2. Conversion 3. Transaction 4. Transaction 5. Number of
Derivative or Exercise Date Code Derivative
Security Price of (Month/Day/Year) (Instr. 8) Securities
(Instr. 3) Derivative Acquired (A)
Security or Disposed
of (D)
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Code V (A) (D)
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Class A
Preferred Stock (1) 1-for-1(7) 12/31/98 P 727,194
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Class A
Preferred Stock (1) 1-for-1(7) 12/31/98 P 44,368
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Rights to Acquire
Common
Stock (2) $5.00 per 12/31/98 J(2) Rights
share to acquire
up to 132,806
shares (2)
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Rights to Acquire $5.00 per 12/31/98 J(2) Rights
Common Stock (2) share to
acquire
up to
8,103
shares (2)
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Warrants to Acquire
Common Stock (3) N.A. 12/31/98 J(3) 240,000
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Warrants to Acquire
Common Stock (3) N.A. 12/31/98 J(3) 14,643
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Options to Acquire
Common Stock (4) (4) 12/31/98 J(4) 5,000
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Options to Acquire
Common Stock (4) (4) 12/31/98 J(4) 302
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FORM 4 (continued)
Table II - Derivative Securities Acquired, Disposed of, or Beneficially Owned
(E.G., puts, calls, warrants, options, convertible securities)
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<S> <C> <C> <C> <C> <C>
6. Date 7. Title and Amount 8. Price of 9. Number of 10. Ownership 11. Nature of
Exercisable of Underlying Derivative Derivative Form of Indirect
and Expiration Securities Security Securities Derivative Beneficial
Date (Instr. 3 and 4) Beneficially Security: Ownership
(Month/Day/Year) Owned at Direct (D) or (Instr. 4)
End of Indirect (I)
Month (Instr. 4)
(Instr. 4)
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Amount
Date Expir- or
Exer- ation Number
cisable Date Title of Shares
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Immed. Common Stock 727,194 $4.587 per 727,194 D (5)
(7) share
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Immed. Common Stock 44,368 $4.587 per 44,368 I (6)
(7) share
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(2) (2) Common Stock 132,806 N.A. 132,806(2) D (5)
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(2) (2) Common Stock 8,103 N.A. 8,103 I (6)
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10/20/98 9/04/03 Common Stock 240,000 (3) 0 D (5)
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10/20/98 9/04/03 Common Stock 14,643 (3) 0 I (6)
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7/1/99 12/31/08 Common Stock 5,000 (4) 5,000 D (5)
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7/1/99 12/31/08 Common Stock 302 (4) 302 I (6)
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Explanation of Responses:
1. Securities acquired and directly owned by Capricorn Investors II, L.P.
("Capricorn II") pursuant to the closing of Stock Purchase Agreement dated as of
October 16, 1998 and executed on December 31, 1998 among The WMF Group, Ltd.
(the "Company"), Harvard Private Capital Holdings, Inc., Demeter Holdings
Corporation ("Demeter"), Phemus Corporation ("Phemus") and Capricorn II (the
"Stock Purchase Agreement"). At the closing of the Stock Purchase Agreement,
which occurred on December 31, 1998, Capricorn II purchased 727,194 shares of
class A non-voting, convertible preferred stock, par value $.01 per share, of
the Company ("Class A Preferred Stock"). In connection with the execution of the
Stock Purchase Agreement, on December 31, 1998 Capricorn II executed the
Stand-By Agreement referenced in footnote 2 hereof and cancelled the Warrants
referenced in footnote 3 hereof.
2
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2. Rights to acquire shares of common stock, par value $.01 per share, of
the Company ("Common Stock") by Capricorn II pursuant to Stand-By Purchase
Agreement dated as of October 16, 1998 and executed on December 31, 1998 among
the Company, Demeter, Phemus and Capricorn II (the "Stand-By Agreement"). The
closing of the transactions contemplated by the Stand-By Agreement is scheduled
to occur as soon as practicable following the expiration of the exercise period
of the Rights (defined below) issued in the Rights Offering (defined below).
Pursuant to the Stand-By Agreement, Capricorn II has committed to purchase up to
132,806 shares of Common Stock (the "Stand-By Shares") not subscribed for by
other shareholders of the Company in the Rights Offering, including pursuant to
any oversubscription privilege, at a purchase price of $5.00 per share. Pursuant
to the Rights Offering, the Company will distribute on a pro rata basis
transferable rights (each a "Right") to all holders of record of Common Stock on
a record date to be determined by the Board of Directors of the Company,
entitling such holders to receive 1.072 Rights for each share of Common Stock
held by them on such record date. Each Right will entitle the holder thereof to
purchase one share of Common Stock for $5.00 per share (the "Rights Offering").
In connection with the execution of the Stand-By Agreement, on December 31, 1998
Capricorn II executed the Stock Purchase Agreement referenced in footnote 1
hereof and cancelled the Warrants referenced in footnote 3 hereof.
3. 240,000 warrants ("Warrants") to purchase Common Stock beneficially
held by Capricorn II were cancelled and retired pursuant to the terms of the
Stock Purchase Agreement on December 31, 1998. As set forth in Section 5.2 of
the Stock Purchase Agreement, the Company determined that the value of the
Warrants was $30,000. In connection with the cancellation of the Warrants, on
December 31, 1998 Capricorn II executed the Stock Purchase Agreement referenced
in footnote 1 hereof and the Stand-By Agreement referenced in footnote 2 hereof.
4. Options to acquire 5,000 shares of Common Stock (the "Option Shares")
were granted to Capricorn II on December 31, 1998 (the "1998 Option"). The 1998
Option is exercisable commencing on July 1, 1999, at a price per share equal to
the fair market value of the Option Shares on December 31, 1998.
5. Securities acquired and directly owned by Capricorn II. At December 31,
1998, Capricorn II held 836,012 shares of Common Stock, 727,194 shares of Class
A Preferred Stock and 870,000 derivative securities of the Company. The 870,000
derivative securities directly owned by Capricorn II at December 31, 1998
consisted of (i) rights to acquire 727,194 shares of Common Stock upon
conversion of the Class A Preferred Stock, (ii) rights to acquire up to 132,806
Stand-By Shares pursuant to the Stand-By Agreement, (iii) rights to acquire
5,000 shares of Common Stock pursuant to an option granted in 1997 (the "1997
Option"), and (iv) rights to acquire 5,000 shares of Common Stock pursuant to
the 1998 Option.
6. Securities beneficially owned by Mr. Winokur, who may be deemed to have
a pecuniary interest in these securities owned by Capricorn II through (i)
Capricorn Holdings, LLC, which is the general partner of Capricorn II, (ii) his
limited partnership interest in Capricorn II and (iii) Winokur Family Investors,
LLC ("WFI"), which is a limited partner of Capricorn II. WFI is controlled by
Mr. Winokur and owned by Mr. Winokur and members of his immediate family. Other
than with respect to 14,488 shares of Common Stock, 12,603 shares of Class A
Preferred Stock and 15,071 derivative securities (such 15,071 derivative
securities consisting of (i) rights to acquire 12,603 shares of Common Stock
upon conversion of the Class A Preferred Stock, (ii) rights to acquire up to
2,302 Stand-By Shares pursuant to the Stand-By Agreement, (iii) rights to
acquire 83 shares of Common Stock pursuant to the 1997 Option, and (iv) rights
to acquire 83 shares of Common Stock Pursuant to the 1998 Option), Mr. Winokur
disclaims beneficial ownership of the shares and derivative securities
beneficially owned by WFI.
7. Each share of Class A Preferred Stock is convertible at the option of
the holder thereof at any time into (i) one share of Common Stock, adjusted as
provided in the Certificate of Designations, Preferences and Rights of the Class
A Preferred Stock (the "Certificate of Designations"), plus (ii) an additional
number of shares of Common Stock having a fair market value on the date of
conversion equal to accrued but unpaid cash dividends through the conversion
date on such share of Class A Preferred Stock. The Class A Preferred Stock is
also subject to mandatory conversion and optional redemption by the Company, as
provided in the Certificate of Designations.
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<S> <C> <C> <C>
/s/ HERBERT S. WINOKUR, JR. January 11, 1999
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Herbert S. Winokur, Jr.
** International misstatements or omissions of facts constitute Federal
Criminal Violations. SEE 18 U.S. C. 1001 and 15 U.S.C. 78ff(a).
Note: File three copies of this Form, one of which must be manually signed. If
space provided is insufficient,
Potential persons who are to respond to the collection of information contained
in this form are not required to respond unless the form displays a currently
valid OMB Number.
Capricorn Investors, II, L.P. January 11, 1999
By: Capricorn Holdings, LLC
/s/ HERBERT S. WINOKUR, JR.
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Name: Herbert S. Winokur, Jr.
Title: Manager
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FORM 4 - ADDITIONAL REPORTING PERSON INFORMATION
1. Name and Address of Additional Reporting Person:
Capricorn Investors II, L.P.
30 East Elm Street
Greenwich, Connecticut 06830
4
