<PAGE>
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
SCHEDULE 13D
(Rule 13d-101)
INFORMATION TO BE INCLUDED IN STATEMENTS FILED PURSUANT TO
13d-1(a) AND AMENDMENTS THERETO FILED PURSUANT TO 13d-2(a)
(Amendment No. 1)/1/
RARE MEDIUM GROUP, INC.
-----------------------
(Name of Issuer)
Common Stock, Par Value $0.01 Per Share
---------------------------------------
(Title of Class of Securities)
449238203
---------
(CUSIP Number)
DANIEL G. KELLY, JR.
DAVIS POLK & WARDWELL
450 LEXINGTON AVENUE
NEW YORK, NEW YORK 10017
(212) 450-4000
-----------------------------
(Name, Address and Telephone Number of Person
Authorized to Receive Notices and Communications)
August 19, 1999
---------------
(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 which is the subject of this Schedule 13D, and is filing this
schedule because of Rule 13d-1(b)(3) or (4), check the following box [_].
Note: Six copies of this statement, including all exhibits, should be filed with
the Commission. See Rule 13d-1(a) for other parties to whom copies are to be
sent.
- -------------------------------
/1/ The remainder of this cover page shall be filled out for a reporting
person's initial filing on this form with respect to the subject class of
securities, and for any subsequent amendment containing information which would
alter disclosures provided in a prior cover page.
The information required on the remainder of this cover page shall not be
deemed to be "filed" for the purpose of Section 18 of the Securities Exchange
Act of 1934 or otherwise subject to the liabilities of that section of the Act
but shall be subject to all other provisions of the Act (however, see the
Notes).
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(Continued on following pages)
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1 NAME OF REPORTING PERSONS
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)
Apollo Investment Fund IV, L.P.
- --------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP*
(a) [X] (b) [_]
- --------------------------------------------------------------------------------
3 SEC USE ONLY
- --------------------------------------------------------------------------------
4 SOURCE OF FUNDS*
OO
- --------------------------------------------------------------------------------
5 CHECK BOX 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
SHARES 28,003,035
BENEFICIALLY -----------------------------------------------------------
OWNED BY 8 SHARED VOTING POWER
EACH 36,567,034
REPORTING -----------------------------------------------------------
PERSON WITH 9 SOLE DISPOSITIVE POWER
- -------------- 28,003,035
-----------------------------------------------------------
10 SHARED DISPOSITIVE POWER
36,567,034
- --------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING
PERSON
36,567,034
- --------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
CERTAIN SHARES* [_]
- --------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
48%
- --------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
PN
- --------------------------------------------------------------------------
* SEE INSTRUCTIONS BEFORE FILLING OUT!
<PAGE>
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CUSIP NO. 449238203 13D Page 3 of 15 Pages
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1 NAME OF REPORTING PERSONS
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)
Apollo Overseas Partners IV, L.P.
- --------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP*
(a) [X] (b) [_]
- --------------------------------------------------------------------------------
3 SEC USE ONLY
- --------------------------------------------------------------------------------
4 SOURCE OF FUNDS*
OO
- --------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS
REQUIRED PURSUANT TO ITEMS 2(d) OR 2(e) [_]
- --------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
Cayman Islands
- --------------------------------------------------------------------------------
NUMBER OF 7 SOLE VOTING POWER
SHARES 1,502,905
BENEFICIALLY -----------------------------------------------------------
OWNED BY 8 SHARED VOTING POWER
EACH 36,567,034
REPORTING -----------------------------------------------------------
PERSON WITH 9 SOLE DISPOSITIVE POWER
- -------------- 1,502,905
-----------------------------------------------------------
10 SHARED DISPOSITIVE POWER
36,567,034
- --------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING
PERSON
36,567,034
- --------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
CERTAIN SHARES* [_]
- --------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
48%
- --------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
PN
- --------------------------------------------------------------------------------
* SEE INSTRUCTIONS BEFORE FILLING OUT!
<PAGE>
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CUSIP NO. 449238203 13D Page 4 of 15 Pages
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1 NAME OF REPORTING PERSONS
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)
AIF IV/RRRR LLC
- --------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP*
(a) [X] (b) [_]
- --------------------------------------------------------------------------------
3 SEC USE ONLY
- --------------------------------------------------------------------------------
4 SOURCE OF FUNDS*
OO
- --------------------------------------------------------------------------------
5 CHECK BOX 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
SHARES 7,061,094
BENEFICIALLY -----------------------------------------------------------
OWNED BY 8 SHARED VOTING POWER
EACH 36,567,034
REPORTING -----------------------------------------------------------
PERSON WITH 9 SOLE DISPOSITIVE POWER
- -------------- 7,061,094
-----------------------------------------------------------
10 SHARED DISPOSITIVE POWER
36,567,034
- --------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING
PERSON
36,567,034
- --------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
CERTAIN SHARES* [_]
- --------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
48%
- --------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
OO
- --------------------------------------------------------------------------------
* SEE INSTRUCTIONS BEFORE FILLING OUT!
<PAGE>
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CUSIP NO. 449238203 13D Page 5 of 15 Pages
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- --------------------------------------------------------------------------------
1 NAME OF REPORTING PERSONS
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)
Apollo Advisors IV, L.P.
- --------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP*
(a) [X] (b) [_]
- --------------------------------------------------------------------------------
3 SEC USE ONLY
- --------------------------------------------------------------------------------
4 SOURCE OF FUNDS*
OO
- --------------------------------------------------------------------------------
5 CHECK BOX 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
SHARES -0-
BENEFICIALLY -----------------------------------------------------------
OWNED BY 8 SHARED VOTING POWER
EACH 36,567,034
REPORTING -----------------------------------------------------------
PERSON WITH 9 SOLE DISPOSITIVE POWER
- -------------- -0-
-----------------------------------------------------------
10 SHARED DISPOSITIVE POWER
36,567,034
- --------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING
PERSON
36,567,034
- --------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
CERTAIN SHARES* [_]
- --------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
48%
- --------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
PN
- --------------------------------------------------------------------------------
* SEE INSTRUCTIONS BEFORE FILLING OUT!
<PAGE>
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CUSIP NO. 449238203 13D Page 6 of 15 Pages
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1 NAME OF REPORTING PERSONS
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)
Apollo Management IV, L.P.
- --------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP*
(a) [X] (b) [_]
- --------------------------------------------------------------------------------
3 SEC USE ONLY
- --------------------------------------------------------------------------------
4 SOURCE OF FUNDS*
OO
- --------------------------------------------------------------------------------
5 CHECK BOX 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
SHARES -0-
BENEFICIALLY -----------------------------------------------------------
OWNED BY 8 SHARED VOTING POWER
EACH 36,567,034
REPORTING -----------------------------------------------------------
PERSON WITH 9 SOLE DISPOSITIVE POWER
- -------------- -0-
-----------------------------------------------------------
10 SHARED DISPOSITIVE POWER
36,567,034
- --------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING
PERSON
36,567,034
- --------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
CERTAIN SHARES* [_]
- --------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
48%
- --------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
PN
- --------------------------------------------------------------------------------
* SEE INSTRUCTIONS BEFORE FILLING OUT!
<PAGE>
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CUSIP NO. 449238203 13D Page 7 of 15 Pages
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This Amendment No. 1 amends and supplements the following Items of the
Statement on Schedule 13D (the "Schedule 13D") of Apollo Investment Fund IV,
L.P., Apollo Overseas Partners IV, L.P., AIF IV/RRRR LLC, Apollo Advisors IV,
L.P. and Apollo Management IV, L.P. (collectively, the "Reporting Persons")
originally filed on June 14, 1999 with the Securities and Exchange Commission
with respect to the shares of Common Stock, par value $.01 per share of Rare
Medium Group, Inc. (the "Issuer"). Unless otherwise indicated, all capitalized
terms used but not defined herein have the meanings set forth in the Schedule
13D.
Responses to each item below are incorporated by reference into each other
item, as applicable.
ITEM 4. PURPOSE OF TRANSACTIONS.
On June 4, 1999, AIF IV, Overseas IV and AIF LLC (collectively, the
"Purchasers") acquired the Securities pursuant to the Amended and Restated
Securities Purchase Agreement with the Issuer (the "Agreement"). The Series A
Preferred Stock and the Series 1-A and 2-A Warrants (collectively, the "Series A
Securities") were initially convertible into, or exercisable for, an aggregate
of 5,417,994 shares of Common Stock, representing approximately 12.5% of the
outstanding Common Stock on a fully diluted basis. The Series B Preferred Stock
and the Series 1-B and 2-B Warrants (collectively the "Series B Securities")
were initially convertible into, or exercisable for, 31,018,119 shares of the
Issuer's non-voting common stock (the "Non-Voting Stock").
Under the Agreement, the Issuer was required to seek shareholder approval
for the conversion (the "Series B-to-A Conversion") of the Series B Securities
into an equal amount of Series A Securities, as well as the creation of Non-
Voting Stock, on or prior to October 2, 1999 (the "Outside Date").
On August 19, 1999, the Issuer's stockholders approved the Series B-to-A
Conversion, and the Series B Preferred Stock, the Series 1-B Warrants and the
Series 2-B Warrants were automatically converted into 744,000 shares of Series A
Preferred Stock, 744,000 Series 1-A Warrants and 10,345,548 Series 2-A Warrants,
respectively. The Issuer's stockholders also authorized the creation of Non-
Voting Common Stock.
The Series A Preferred Stock is entitled to vote with the holders of Common
Stock on all matters (except the Series B-to-A Conversion and related matters
under the Agreement). Following the Series B-to-A Conversion the number of votes
to which the Series A Preferred Stock is entitled is .875 per underlying share
of Common Stock (provided that the aggregate vote shall not exceed a total of
9,750,000 votes, which represents approximately 19.7% of the total voting
power). In addition, the holders of the Series A Preferred Stock initially had
the right to elect one member of the Issuer's Board of Directors, and were able
to elect a second Director following stockholder approval of the Series B-to-A
Conversion.
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CUSIP NO. 449238203 13D Page 8 of 15 Pages
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In addition to the foregoing, the Purchasers (so long as they own at least
100,000 shares of Series A Preferred Stock) will have approval rights over
certain matters, including matters described in Items 4 (a) through (f) of
Schedule 13D.
The following is a description of certain additional terms of the Series A
Securities:
Series A Preferred Stock.
------------------------
Liquidation Preference. The Series A Preferred Stock has a liquidation
preference of $100 per share (the "Liquidation Preference") plus all accrued and
unpaid dividends. No distributions may be made to holders of the Common Stock
until the holders of the Series A Preferred Stock have received the Liquidation
Preference.
Dividends. Holders of Series A Preferred Stock are initially entitled to
receive quarterly dividends at the rate of 7.50% of the Liquidation Preference
per share from the original issuance date of such shares to June 30, 2002 and
thereafter at the rate of 4.65%. From the date of the original issuance of the
Series A Preferred Stock until June 30, 2002, the Issuer shall pay dividends
through the issuance of additional shares of Series A Preferred Stock
("Additional Securities"). From June 30, 2002 until June 30, 2004, the Issuer
shall pay dividends through the issuance of Additional Securities, provided that
at the option of either the holders of a majority of the then outstanding shares
of Series A Preferred Stock or the Issuer, the Issuer shall pay the dividends in
whole in cash. After June 30, 2004, all dividends on the Series A Preferred
Stock shall be paid in cash.
Conversion Price. Holders of Series A Preferred Stock may convert their
shares at any time into a number of shares of Common Stock determined by
dividing (x) $100 plus accrued and unpaid dividends, by (y) $7.00 per share,
subject to adjustment in accordance with certain anti-dilution provisions (the
"Conversion Price").
Optional Redemption. The Series A Preferred Stock is not redeemable for
five years; thereafter, the Issuer may redeem all of the Series A Preferred
Stock at any time at 103% of the Liquidation Preference plus accrued and unpaid
dividends.
Mandatory Redemption. Holders of Series A Preferred Stock have the right
to require the Issuer to redeem the Preferred Stock on the earliest of a change
of control, the date upon which the Common Stock is not listed for trading on a
United States national securities exchange or the National Market System or June
30, 2012 at a price equal to the Liquidation Preference plus all accrued and
unpaid dividends thereon.
Series 1-A Warrants.
-------------------
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CUSIP NO. 449238203 13D Page 9 of 15 Pages
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Each share of Series A Preferred Stock (including Additional Shares) was
issued with a Series 1-A Warrant entitling the holder to acquire 13.5 shares of
Common Stock at a variable exercise price between $4.20 and $0.01 per share,
subject to adjustment. The Series 1-A Warrants have no voting rights.
Series 2-A Warrants.
-------------------
Each Series 2-A Warrant entitled the holder to acquire one share of Common
Stock initially for $7.00, subject to adjustment. The strike price would have
been reduced to $0.01 if the Issuer's stockholders did not approve the Series B-
to-A Conversion on or prior to the Outside Date. The Series 2-A Warrants have
no voting rights.
The foregoing descriptions do not purport to be complete and are qualified
in their entirety by reference to the Agreement, the Certificates of Designation
of the Series A and Series B Preferred Stock, and the terms of the Series 1-A,
1-B, 2-A and 2-B Warrants, a copy of each of which was filed as Exhibit 2 to the
Schedule 13D and is incorporated herein by reference.
The Reporting Persons retain the right to change their investment intent,
to propose one or more possible transactions to the Issuer's Board of Directors,
to acquire additional shares of Series A Preferred Stock or Common Stock or
other securities of the Issuer from time to time, or to sell or otherwise
dispose of all or part of the Series A Securities, Series B Securities or Common
Stock beneficially owned by them (or any shares of Common Stock into which such
securities are converted) in any manner permitted by law. The Reporting Persons
may engage from time to time in ordinary course transactions, including
collateral arrangements, with financial institutions with respect to the
securities described herein. To the extent such transactions materially affect
the Reporting Persons' ownership of such securities, or in the event of a
material change in the present plans or intentions of the Reporting Persons, the
Reporting Persons will amend this Schedule 13D to reflect such change.
ITEM 5. INTEREST IN SECURITIES OF THE ISSUER.
(a) and (b) On August 19, 1999, the Issuer's stockholders approved the
Series B-to-A Conversion. As a result of the automatic
conversion of the Series B Securities, the Reporting Persons
beneficially own 874,712 shares of Series A Preferred Stock,
874,712.50 Series 1-A Warrants, 12,262,542 Series 2-A Warrants,
0 shares of Series B Preferred Stock, 0 Series 1-B Warrants and
0 Series 2-B Warrants. Each share of Series A Preferred Stock
is currently convertible into approximately 14.2857 shares of
Common Stock as described in Item 4, or an aggregate of
12,495,873 shares of the Common Stock, which represents
approximately 32% of the class. The Series 1-A Warrants are
currently exercisable for 11,808,619 shares of Common Stock,
representing approximately 30% of the class.
<PAGE>
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CUSIP NO. 449238203 13D Page 10 of 15 Pages
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The Series 2-A Warrants are currently exercisable for
12,262,542 shares of Common Stock, representing approximately
31% of the class. Beneficial ownership of all such securities
was acquired as described in Item 3 and Item 4.
(c),(d) and (e) None or not applicable.
ITEM 6. CONTRACTS, ARRANGEMENTS, UNDERSTANDINGS OR RELATIONSHIPS WITH RESPECT
TO SECURITIES OF THE ISSUER.
The responses to Item 2, Item 3 and Item 4 are incorporated herein by
reference.
Rare Medium Acquisition, LLC, which is an affiliate of Bear Stearns & Co.
Inc., is the principal equity holder of a membership interest in AIF LLC.
The foregoing response to this Item 6 is qualified in its entirety by
reference to the Agreement, the full text of which was filed as Exhibit 1 to the
Schedule 13D and incorporated herein by this reference.
<PAGE>
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CUSIP NO. 449238203 13D Page 11 of 15 Pages
- -------------------------- --------------------
SIGNATURE
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.
August 19, 1999
APOLLO INVESTMENT FUND IV, L.P.
By: Apollo Advisors IV, L.P., its General Partner
By: Apollo Capital Management IV, Inc., its
General Partner
By: /s/ Andrew D. Africk
-------------------------------
Name: Andrew D. Africk
Title: Vice President
<PAGE>
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CUSIP NO. 449238203 13D Page 12 of 15 Pages
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SIGNATURE
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.
August 19, 1999
APOLLO OVERSEAS PARTNERS IV, L.P.
By: Apollo Advisors IV, L.P., its General Partner
By: Apollo Capital Management IV, Inc., its
General Partner
By: /s/ Andrew D. Africk
-----------------------------------
Name: Andrew D. Africk
Title: Vice President
<PAGE>
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CUSIP NO. 449238203 13D Page 13 of 15 Pages
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SIGNATURE
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.
August 19, 1999
AIF IV/RRRR LLC
By: APOLLO MANAGEMENT IV, L.P.,
its Manager
By: AIF IV MANAGEMENT, INC.,
its General Partner
By: /s/ Andrew D. Africk
---------------------------------
Name: Andrew D. Africk
Title: Vice President
<PAGE>
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CUSIP NO. 449238203 13D Page 14 of 15 Pages
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SIGNATURE
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.
August 19, 1999
APOLLO ADVISORS IV, L.P.
By: Apollo Capital Management IV, Inc., its
General Partner
By: /s/ Andrew D. Africk
------------------------------------------
Name: Andrew D. Africk
Title: Vice President
<PAGE>
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CUSIP NO. 449238203 13D Page 15 of 15 Pages
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SIGNATURE
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.
August 19, 1999
APOLLO MANAGEMENT IV, L.P.
By: AIF IV Management, Inc., its
General Partner
By: /s/ Andrew D. Africk
------------------------------------
Name: Andrew D. Africk
Title: Vice President
