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SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
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SCHEDULE 13D
(RULE 13D-101)
INFORMATION TO BE INCLUDED IN STATEMENTS FILED PURSUANT
TO RULE 13D-1(A) AND AMENDMENTS THERETO FILED PURSUANT TO
RULE 13D-2(A)
LENDINGTREE, INC.
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(Name of Issuer)
COMMON STOCK, PAR VALUE $0.01 PER SHARE
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(Title of Class of Securities)
526020-10-5
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(CUSIP Number)
Capital Z Management, LLC
54 Thompson Street
New York, New York 10012
Attention: Mr. David A. Spuria
(212) 965-0800
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(Name, address and telephone number of person
authorized to receive notices and communications)
September 29, 2000
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(Date of event which requires filing of this Statement)
If the filing person has previously filed a statement on Schedule 13G to report
the acquisition that is the subject of this Schedule 13D, and is filing this
schedule because of Rule 13d-1(e), (f) or (g), check the following box.
Note: Schedules filed in paper format shall include a signed original and five
copies of the schedule, including all exhibits. See Rule 13d-7(b) for other
parties to whom copies are to be sent.
<PAGE>
<TABLE>
<CAPTION>
========= =============================================================================================================
<S> <C>
1 NAME OF REPORTING PERSON
I.R.S. IDENTIFICATION NO. OF ABOVE PERSON (entities only)
SPECIALTY FINANCE PARTNERS
--------- -------------------------------------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP*
(a) [ ]
(b) [X]
--------- -------------------------------------------------------------------------------------------------------------
3 SEC USE ONLY
--------- -------------------------------------------------------------------------------------------------------------
4 SOURCE OF FUNDS
00 - CONTRIBUTIONS FROM PARTNERS
--------- -------------------------------------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS
REQUIRED PURSUANT TO ITEM 2(d) or 2(e) [ ]
--------- -------------------------------------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
BERMUDA
--------- -------------------------------------------------------------------------------------------------------------
7 SOLE VOTING POWER
NUMBER OF
SHARES 5,210,338
BENEFICIALLY ------- ------------------------------------------------------------------
OWNED BY 8 SHARED VOTING POWER
EACH
REPORTING
PERSON ------- ------------------------------------------------------------------
WITH 9 SOLE DISPOSITIVE POWER
5,210,338
------- ------------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
--------- -------------------------------------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
5,210,338
--------- -------------------------------------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW 11
EXCLUDES CERTAIN SHARES
[ ]
--------- -------------------------------------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW 11
28.9%
--------- -------------------------------------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON
PN
--------- -------------------------------------------------------------------------------------------------------------
2
<PAGE>
========= =============================================================================================================
1 NAME OF REPORTING PERSON
I.R.S. IDENTIFICATION NO. OF ABOVE PERSON (entities only)
CAPITAL Z FINANCIAL SERVICES FUND II, L.P.*
--------- -------------------------------------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP*
(a) [ ]
(b) [X]
--------- -------------------------------------------------------------------------------------------------------------
3 SEC USE ONLY
--------- -------------------------------------------------------------------------------------------------------------
4 SOURCE OF FUNDS
NOT APPLICABLE
--------- -------------------------------------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS
REQUIRED PURSUANT TO ITEM 2(d) or 2(e) [ ]
--------- -------------------------------------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
BERMUDA
--------- -------------------------------------------------------------------------------------------------------------
7 SOLE VOTING POWER
NUMBER OF
SHARES ------- ------------------------------------------------------------------
BENEFICIALLY 8 SHARED VOTING POWER
OWNED BY
EACH 5,210,338*
REPORTING ------- ------------------------------------------------------------------
PERSON 9 SOLE DISPOSITIVE POWER
WITH
------- ------------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
5,210,338*
--------- -------------------------------------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
5,210,338*
--------- -------------------------------------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW 11
EXCLUDES CERTAIN SHARES
[ ]
--------- -------------------------------------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW 11
28.9%
--------- -------------------------------------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON
PN
--------- -------------------------------------------------------------------------------------------------------------
*Solely in its capacity as a general partner of Specialty Finance Partners.
3
<PAGE>
========= =============================================================================================================
1 NAME OF REPORTING PERSON
I.R.S. IDENTIFICATION NO. OF ABOVE PERSON (entities only)
CAPITAL Z PARTNERS, L.P.*
--------- -------------------------------------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP*
(a) [ ]
(b) [X]
--------- -------------------------------------------------------------------------------------------------------------
3 SEC USE ONLY
--------- -------------------------------------------------------------------------------------------------------------
4 SOURCE OF FUNDS
NOT APPLICABLE
--------- -------------------------------------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS
REQUIRED PURSUANT TO ITEM 2(d) or 2(e) [ ]
--------- -------------------------------------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
BERMUDA
--------- -------------------------------------------------------------------------------------------------------------
7 SOLE VOTING POWER
NUMBER OF
SHARES ------- ------------------------------------------------------------------
BENEFICIALLY 8 SHARED VOTING POWER
OWNED BY
EACH 5,210,338*
REPORTING ------- ------------------------------------------------------------------
PERSON 9 SOLE DISPOSITIVE POWER
WITH
------- ------------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
5,210,338*
--------- -------------------------------------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
5,210,338*
--------- -------------------------------------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW 11
EXCLUDES CERTAIN SHARES
[ ]
--------- -------------------------------------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW 11
28.9%
--------- -------------------------------------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON
PN
--------- -------------------------------------------------------------------------------------------------------------
*Solely in its capacity as the sole general partner of Capital Z Financial
Services Fund II, L.P.
4
<PAGE>
========= =============================================================================================================
1 NAME OF REPORTING PERSON
I.R.S. IDENTIFICATION NO. OF ABOVE PERSON (entities only)
CAPITAL Z PARTNERS, LTD.*
--------- -------------------------------------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP*
(a) [ ]
(b) [X]
--------- -------------------------------------------------------------------------------------------------------------
3 SEC USE ONLY
--------- -------------------------------------------------------------------------------------------------------------
4 SOURCE OF FUNDS
NOT APPLICABLE
--------- -------------------------------------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS
REQUIRED PURSUANT TO ITEM 2(d) or 2(e) [ ]
--------- -------------------------------------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
BERMUDA
--------- -------------------------------------------------------------------------------------------------------------
7 SOLE VOTING POWER
NUMBER OF
SHARES ------- ------------------------------------------------------------------
BENEFICIALLY 8 SHARED VOTING POWER
OWNED BY
EACH 5,210,338*
REPORTING ------- ------------------------------------------------------------------
PERSON 9 SOLE DISPOSITIVE POWER
WITH
------- ------------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
5,210,338*
--------- -------------------------------------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
5,210,338*
--------- -------------------------------------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW 11
EXCLUDES CERTAIN SHARES
[ ]
--------- -------------------------------------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW 11
28.9%
--------- -------------------------------------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON
PN
--------- -------------------------------------------------------------------------------------------------------------
</TABLE>
*Solely in its capacity as the sole general partner of Capital Z Partners, L.P.
5
<PAGE>
ITEM 1. SECURITY AND ISSUER.
Common Stock, $0.01 par value per share (the "Common Stock")
LendingTree, Inc. (the "Company")
1115 Rushmore Drive
Charlotte, NC 28277
ITEM 2. IDENTITY AND BACKGROUND.
(a) Name of Person(s) Filing this Statement (the "Filing
----------------------------------------------------
Parties"):
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Specialty Finance Partners, a Bermuda general partnership
("Specialty Finance Partners");
Capital Z Financial Services Fund II, L.P., a Bermuda
limited partnership ("Capital Z Fund II");
Capital Z Partners, L.P., a Bermuda limited partnership
("Capital Z L.P."); and
Capital Z Partners, Ltd., a Bermuda corporation ("Capital Z
Ltd.").
(b) Residence or Business Address:
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The principal business address of the Filing Parties is 54
Thompson Street, New York, New York 10012.
(c) Present Principal Occupation:
----------------------------
Specialty Finance Partners is a general partnership that
invests in the securities of financial service companies and related businesses.
Capital Z Fund II is a private equity fund formed to engage in the investment in
securities of financial services entities and serves as a general partner of
Specialty Finance Partners. Capital Z L.P. is a business entity formed to serve
as the sole general partner of Capital Z Fund II and Capital Z Private Fund II.
Capital Z Ltd. is a business entity formed to serve as the sole general partner
of Capital Z L.P.
(d) Convictions in Criminal Proceedings During the Last 5
-----------------------------------------------------------
Years:
------
None of the Filing Parties has been convicted in a criminal
proceeding during the last 5 years.
(e) Proceedings Involving Federal or State Securities Laws:
------------------------------------------------------
None of the Filing Parties has, during the last 5 years,
been a party to any civil proceeding as a result of which he or it was subject
to a judgment, decree or final order enjoining future violations of, or
prohibiting or mandating activities subject to, federal or state securities laws
or finding any violations with respect to such laws.
6
<PAGE>
(f) Citizenship:
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Each of the Filing Parties is organized under the
jurisdiction indicated in paragraph (a) of this Item 2.
(g) Other Information:
-----------------
The attached Schedule I is a list of all of the general
partners of Specialty Finance Partners that are not also Filing Parties, which
contains the following information with respect to each entity:
(i) name;
(ii) jurisdiction of organization;
(iii) principal business address; and
(iv) present principal education.
The attached Schedule II is a list of the directors and
executive officers of Capital Z Ltd., which contains the following information
with respect to each person:
(i) name;
(ii) principal business address; and
(iii) present principal occupation or employment;
None of the entities or persons identified on Schedule I or Schedule II
hereto has, during the last five years, been convicted in a criminal proceeding
(excluding traffic violations or similar misdemeanors). None of the entities or
persons identified on Schedule I or Schedule II hereto has, during the last five
years, been a party to a civil proceeding of a judicial or administrative body
of competent jurisdiction and as a result of such proceeding was or is subject
to a judgment, decree or final order enjoining future violations of, or
prohibiting or mandating activities subject to, federal or state securities laws
or finding any violation with respect to such laws. Each person identified on
Schedule II hereto is a United States citizen, except for Laurence W. Cheng, who
is a citizen of Canada.
Steven M. Gluckstern, who is the Chairman of the Board of Capital Z
Ltd., and Robert A. Spass, who is the Deputy Chairman of the Board of Capital Z
Ltd., may be deemed to be beneficial owners of the Common Stock, and the
Certificates and the underlying Common Stock of the Company, held by Specialty
Finance Partners. Messrs. Gluckstern and Spass disclaim any such beneficial
ownership.
7
<PAGE>
ITEM 3. SOURCE AND AMOUNT OF FUNDS.
As more fully described in Item 6 below, on September 29, 2000, Capital
Z Fund II and Capital Z Financial Services Private Fund II ("Capital Z Private
Fund II") purchased, on behalf of Specialty Finance Partners, equity rights of
the Company in the form of Equity Rights Certificates (the "Certificates") for
an aggregate purchase price of $10,000,000. Specialty Finance Partners used
contributions from its partners to fund its purchase of the Certificates. Such
partners, in turn, used contributions from their respective partners to fund
such contributions to Capital Z Fund II and Capital Z Private Fund II. Prior to
the acquisition, Specialty Finance Partners owned 3,956,420 shares of Common
Stock.
ITEM 4. PURPOSE OF TRANSACTION.
The Filing Parties consummated the transactions described herein in
order to acquire a significant interest in the Company and for investment
purposes. Subject to market conditions, the Filing Parties or their affiliates
may acquire or dispose of the Common Stock, the Certificates or the underlying
Common Stock of the Company from time to time in future open-market, privately
negotiated or other transactions, may enter into agreements with third parties
relating to acquisitions of securities issued or to be issued by the Company or
may effect other similar agreements or transactions.
ITEM 5. INTEREST IN SECURITIES OF ISSUER.
(a) and (b) Capital Z Fund II, Capital Z L.P. and Capital Z Ltd. may be
deemed to beneficially own in the aggregate 5,210,338 shares of the Common Stock
of the Company by virtue of Specialty Finance Partners' ownership of shares of
Common Stock and its ability to exercise the Certificates held by it into Common
Stock of the Company pursuant to the terms and conditions of the Purchase
Agreement and the Certificates (each, as defined in Item 6 below). Each of
Capital Z Fund II, Capital Z L.P. and Capital Z Ltd. has the shared power to
vote or to direct the vote, and to dispose or to direct the disposition, of such
shares. Specialty Finance Partners may be deemed to beneficially own in the
aggregate 5,210,338 shares of Common Stock by virtue of the fact that it is the
holder of record of 3,956,420 shares of Common Stock and by virtue of its
ability to convert the Certificates held by it into 1,253,918 shares of Common
Stock pursuant to the terms of the Purchase Agreement and Certificates.
Specialty Finance Partners has the sole power to vote or direct the vote, or to
dispose or to direct the disposition, of such shares. The aggregate number of
shares of Common Stock covered by this Schedule 13D represents approximately
28.9% of the outstanding shares of Common Stock (based on calculations made in
accordance with Rule 13d-3(d) of the Exchange Act and based on the number of
shares of Common Stock outstanding as contained in the Company's most recently
available filing with the Securities and Exchange Commission).
Each of the Filing Parties disclaims beneficial ownership of all
securities covered by this Schedule 13D not owned of record by it.
8
<PAGE>
(c) Except as set forth herein, to the knowledge of the Filing Parties
with respect to the other persons named in response to paragraph (a), none of
the persons named in response to paragraph (a) has effected any transactions in
shares of Common Stock during the past 60 days.
(d) None.
(e) Not applicable.
ITEM 6. CONTRACTS, ARRANGEMENTS, UNDERSTANDINGS OR RELATIONSHIPS WITH
RESPECT TO SECURITIES OF THE ISSUER.
Pursuant to that certain Securities Purchase Agreement (the "Purchase
Agreement"), dated September 29, 2000, by and between Cap Z Fund II, Capital Z
Private Fund II and the Company, on September 29, 2000, Cap Z Fund II and
Capital Z Private Fund II purchased the Certificates, on behalf of Specialty
Finance Partners, for an aggregate purchase price of $10,000,000. Upon the terms
and conditions set forth in the Purchase Agreement and the Certificates, the
Certificates are initially exercisable for in the aggregate 1,253,914 shares of
Common Stock and warrants that are initially exercisable in the aggregate for
225,000 shares of Common Stock, subject to certain anti-dilutive adjustments.
Such warrants will become exercisable on September 29, 2001. The Certificates
may be exercisable for other securities of the Company or for different amounts
of securities of the Company based on the occurrence of certain events. The
Certificates and the corresponding form of warrants are attached hereto as
Exhibit 2 and Exhibit 3.
In addition, the Company issued a Commitment Fee Warrant (the "Fee
Warrant") to an entity in which certain owners of interests in Capital Z Ltd.
also have an interest. The Fee Warrant is exercisable at any time after
September 29, 2001, for 135,000 shares of Common Stock, until September 29,
2005. Such entity acquired the Fee Warrant on behalf of certain of its employees
and owners.
ITEM 7. MATERIAL TO BE FILED AS EXHIBITS.
Exhibit 1 Securities Purchase Agreement, dated as of September 29, 2000, by
and between Capital Z Fund II, Capital Z Private Fund II and the
Company
Exhibit 2 Equity Rights Certificate issued to Capital Z Fund II, dated as of
September 29, 2000
Exhibit 3 Equity Rights Certificate issued to Capital Z Private Fund II,
dated as of September 29, 2000
9
<PAGE>
SIGNATURES
After reasonable inquiry and to the best of my knowledge and belief, I
certify that the information set forth in this Statement is true, complete, and
correct.
Date: October 10, 2000.
SPECIALTY FINANCE PARTNERS
By:/s/ David A. Spuria
-----------------------------------------
David A. Spuria
General Counsel, Vice President of
Administration and Secretary
CAPITAL Z FINANCIAL SERVICES
FUND II, L.P.
By:/s/ David A. Spuria
-----------------------------------------
David A. Spuria
General Counsel, Vice President of
Administration and Secretary
CAPITAL Z PARTNERS, L.P.
By:/s/ David A. Spuria
-----------------------------------------
David A. Spuria
General Counsel, Vice President of
Administration and Secretary
CAPITAL Z PARTNERS, LTD.
By:/s/ David A. Spuria
-----------------------------------------
David A. Spuria
General Counsel, Vice President of
Administration and Secretary
10
<PAGE>
SCHEDULE I
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OTHER GENERAL PARTNERS OF SPECIALTY FINANCE PARTNERS
Capital Z Financial Services Private Fund II, L.P. ("Private Fund II"),
a Bermuda limited partnership that was formed to engage in the investment in
securities of financial service entities, is a general partner of Specialty
Finance Partners. The principal business address of Private Fund II is 54
Thompson Street, New York, New York 10012.
Equifin Capital Partners ("Equifin"), a Cayman Islands corporation that
was formed to engage in the investment in securities of financial service
entities, is a general partner of Specialty Finance Partners. The principal
business address of Equifin is 54 Thompson Street, New York, New York 10012.
11
<PAGE>
SCHEDULE II
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CAPITAL Z PARTNERS, LTD.
Name, business address and present principal occupation or employment of the
directors and executive officers:
Steven M. Gluckstern
Chairman of the Board
54 Thompson Street
New York, New York 10012
Robert A. Spass
Deputy Chairman of the Board
54 Thompson Street
New York, New York 10012
Laurence W. Cheng
President and Director
54 Thompson Street
New York, New York 10012
Bradley E. Cooper
Senior Vice President and Director
54 Thompson Street
New York, New York 10012
Mark K. Gormley
Senior Vice President and Director
54 Thompson Street
New York, New York 10012
Adam M. Mizel
Senior Vice President and Director
54 Thompson Street
New York, New York 10012
Paul H. Warren
Senior Vice President and Director
54 Thompson Street
New York, New York 10012
12
<PAGE>
Scott M. Delman
Senior Vice President and Director
54 Thompson Street
New York, New York 10012
David A. Spuria
General Counsel, Vice President of Administration and Secretary
54 Thompson Street
New York, New York 10012
Roland V. Bernardon
Chief Financial Officer, Treasurer and Assistant Secretary
54 Thompson Street
New York, New York 10012
13
<PAGE>
Exhibit Index
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Exhibit 1 Securities Purchase Agreement, dated as of September 29, 2000, by
and between Capital Z Fund II, Capital Z Private Fund II and the
Company*
Exhibit 2 Equity Rights Certificate issued to Capital Z Fund II, dated as of
September 29, 2000*
Exhibit 3 Equity Rights Certificate issued to Capital Z Private Fund II,
dated as of September 29, 2000*
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*Filed herewith.
14
