<PAGE>
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
SCHEDULE 13D
UNDER THE SECURITIES EXCHANGE ACT OF 1934
(AMENDMENT NO. 1)*
Capstead Mortgage Corporation
--------------------------------------
(Name of Issuer)
Common Stock
--------------------------------------
(Title of Class of Securities)
14067 E 10 0
--------------------
(CUSIP Number)
Bracebridge Capital With a copy to:
Ms. Nancy G. Zimmerman Scott M. Zimmerman, Esq.
Fixed Income Associates, Inc. Swidler Berlin Shereff Friedman, LLP
1000 Massachusetts Avenue 405 Lexington Avenue
Cambridge, Massachusetts 02138 New York, New York 10174
(617) 349-2000 (212) 973-0111
- --------------------------------------------------------------------------------
(Name, Address and Telephone Number of Person Authorized
to Receive Notices and Communications)
December 27, 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
statement because of Rule 13d-1(e), (f) or (g), check the following: [ ].
Note: One copy and an EDGAR version of this statement, including all exhibits,
should be filed with the Commission. See Rule 13d-7(b) for other parties to whom
copies are to be sent.
*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 ("Act") 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).
<PAGE>
SCHEDULE 13D
<TABLE>
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CUSIP No. 14067 E 10 0 Page 2 of 11 Pages
------------ ----- ----
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<S> <C> <C> <C>
1 NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
Fixed Income Associates, Inc.
- ------------------------------------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) [X]
(b) [ ]
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3 SEC USE ONLY
- ------------------------------------------------------------------------------------------------------------
4 SOURCE OF FUNDS*
OO
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5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS
2(d) or 2(e) [ ]
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6 CITIZENSHIP OR PLACE OF ORGANIZATION
Delaware
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NUMBER OF 7 SOLE VOTING POWER
SHARES
BENEFICIALLY -----------------------------------------------------------------------------------------
OWNED BY 8 SHARED VOTING POWER
EACH 4,052,049
REPORTING -----------------------------------------------------------------------------------------
PERSON 9 SOLE DISPOSITIVE POWER
WITH
-----------------------------------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
4,052,049
- ------------------------------------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
4,052,049
- ------------------------------------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES* [ ]
- ------------------------------------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
7.1%
- ------------------------------------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
CO
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</TABLE>
*SEE INSTRUCTIONS BEFORE FILLING OUT!
INCLUDE BOTH SIDES OF THE COVER PAGE, RESPONSES TO ITEMS 1-7
(INCLUDING EXHIBITS) OF THE SCHEDULE, AND THE SIGNATURE ATTESTATION.
<PAGE>
SCHEDULE 13D
<TABLE>
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CUSIP No. 14067 E 10 0 Page 3 of 11 Pages
------------ ----- ----
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<S> <C> <C> <C>
1 NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
Bracebridge Capital, 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
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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
BENEFICIALLY -----------------------------------------------------------------------------------------
OWNED BY 8 SHARED VOTING POWER
EACH 4,052,049
REPORTING -----------------------------------------------------------------------------------------
PERSON 9 SOLE DISPOSITIVE POWER
WITH
-----------------------------------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
4,052,049
- ------------------------------------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
4,052,049
- ------------------------------------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES* [ ]
- ------------------------------------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
7.1%
- ------------------------------------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
PN
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</TABLE>
*SEE INSTRUCTIONS BEFORE FILLING OUT!
INCLUDE BOTH SIDES OF THE COVER PAGE, RESPONSES TO ITEMS 1-7
(INCLUDING EXHIBITS) OF THE SCHEDULE, AND THE SIGNATURE ATTESTATION.
<PAGE>
SCHEDULE 13D
<TABLE>
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CUSIP No. 14067 E 10 0 Page 4 of 11 Pages
------------ ----- ----
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<S> <C> <C> <C>
1 NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
Bracebridge Capital 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) [ ]
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6 CITIZENSHIP OR PLACE OF ORGANIZATION
Massachusetts
- ------------------------------------------------------------------------------------------------------------
NUMBER OF 7 SOLE VOTING POWER
SHARES
BENEFICIALLY -----------------------------------------------------------------------------------------
OWNED BY 8 SHARED VOTING POWER
EACH 1,722,850
REPORTING -----------------------------------------------------------------------------------------
PERSON 9 SOLE DISPOSITIVE POWER
WITH
-----------------------------------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
1,722,850
- ------------------------------------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
1,722,850
- ------------------------------------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES* [ ]
- ------------------------------------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
3.0%
- ------------------------------------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
00
- ------------------------------------------------------------------------------------------------------------
</TABLE>
*SEE INSTRUCTIONS BEFORE FILLING OUT!
INCLUDE BOTH SIDES OF THE COVER PAGE, RESPONSES TO ITEMS 1-7
(INCLUDING EXHIBITS) OF THE SCHEDULE, AND THE SIGNATURE ATTESTATION.
<PAGE>
SCHEDULE 13D
<TABLE>
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CUSIP No. 14067 E 10 0 Page 5 of 11 Pages
------------ ----- ----
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<S> <C> <C> <C>
1 NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
Nancy G. Zimmerman
- ------------------------------------------------------------------------------------------------------------
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
United States
- ------------------------------------------------------------------------------------------------------------
NUMBER OF 7 SOLE VOTING POWER
SHARES
BENEFICIALLY -----------------------------------------------------------------------------------------
OWNED BY 8 SHARED VOTING POWER
EACH 4,052,049
REPORTING -----------------------------------------------------------------------------------------
PERSON 9 SOLE DISPOSITIVE POWER
WITH
-----------------------------------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
4,052,049
- ------------------------------------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
4,052,049
- ------------------------------------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES* [ ]
- ------------------------------------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
7.1%
- ------------------------------------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
IN
- ------------------------------------------------------------------------------------------------------------
</TABLE>
*SEE INSTRUCTIONS BEFORE FILLING OUT!
INCLUDE BOTH SIDES OF THE COVER PAGE, RESPONSES TO ITEMS 1-7
(INCLUDING EXHIBITS) OF THE SCHEDULE, AND THE SIGNATURE ATTESTATION.
<PAGE>
SCHEDULE 13D
This Amendment No. 1 to the Statement on Schedule 13D (as defined
below) amends and supplements the Statement on Schedule 13D relating to the
event date of December 10, 1999 (the "Schedule 13D"), filed by Fixed Income
Associates, Inc., a Delaware corporation ("FIA"), Bracebridge Capital, L.P.
("BCLP"), a Delaware limited partnership of which FIA is the general partner,
Bracebridge Capital LLC ("BCLLC"), a Massachusetts limited liability company of
which FIA is the managing member, and Nancy G. Zimmerman, the sole shareholder
of FIA ("Zimmerman" and together with FIA, BCLP and BCLLC, the "Reporting
Persons") relating to the common stock (the "Common Stock") of Capstead Mortgage
Corporation (the "Issuer"). Capitalized terms used and not defined herein shall
have the meanings assigned thereto in the Schedule 13D. The business address of
each FIA, BCLP, BCLLC and Zimmerman is 1000 Massachusetts Avenue, Cambridge, MA
02138. The address of the Issuer is 8401 North Central Expressway, Suite 800,
Dallas, Texas 75225.
ITEM 3. SOURCE AND AMOUNT OF FUNDS
Item 3 is hereby amended to add the following:
Since December 17, 1999, FIFI II L.P. ("FIFI"), a Delaware
limited partnership of which BCLP is the general partner, purchased an aggregate
of 268,300 shares of Common Stock at an aggregate cost of $1,153,067 using its
own funds. In addition, FIFI purchased an aggregate of 22,900 shares of
Cumulative Convertible Preferred Stock, Series B of the Company (the "Series B
Shares") at an aggregate cost of $218,924 using its own funds. The Series B
Shares are convertible into 17,260 shares of Common Stock. FFI Fund Ltd.
("FFI"), a Cayman Islands company whose sole directors are BCLP and BCLLC,
purchased an aggregate of 366,600 shares of Common Stock at an aggregate cost of
$1,573,816 using its own funds. See Item 5.
ITEM 5. INTEREST IN SECURITIES OF THE ISSUER
Item 5 is hereby amended and restated in its entirety as follows:
(a) and (b)
BCLP, as the general partner of FIFI, has the power to vote and
to direct the voting of and the power to dispose and direct the disposition of
the 2,329,199 shares of Common Stock deemed to be owned by FIFI. Accordingly,
BCLP may be deemed to be the beneficial owner of 2,329,199 shares of Common
Stock, or 4.1% of the outstanding shares of Common Stock.
BCLP and BCLLC, as the sole directors of FFI, have the power to
vote and direct the voting of and power to dispose and direct the disposition of
the 1,722,850 shares of Common Stock deemed to be owned by FFI. Accordingly,
BCLP and BCLLC may together be deemed to
6
<PAGE>
be the beneficial owner of 1,722,850 shares of Common Stock, or 3.0% of the
outstanding shares of Common Stock.
As the General Partner of BCLP, FIA has the power to vote and to
direct the voting of and the power to dispose and direct the disposition of the
2,329,199 shares of Common Stock deemed to be owned by FIFI. As the General
Partner of BCLP and the managing member of BCLLC, FIA has the power to vote and
to direct the disposition of the 1,722,850 shares of Common Stock deemed to be
beneficially owned by FFI.
As the sole shareholder of FIA, Zimmerman may be deemed to have
the power to vote and to direct the voting of and power to dispose and direct
the disposition of the 2,329,199 shares of Common Stock deemed to be
beneficially owned by FIFI and the 1,722,850 shares of Common Stock owned by
FFI. Accordingly, Zimmerman may be deemed to be the beneficial owner of
4,052,049 shares of Common Stock, or 7.1% of the outstanding shares of Common
Stock.
The number of shares beneficially owned by each of the Reporting
Persons and the percentage of outstanding shares represented thereby, have been
computed in accordance with Rule 13d-3 under the Securities Exchange Act of
1934, as amended. The percentage ownership of the Reporting Persons is based on
57,292,154 outstanding shares of Common Stock, such amount representing the sum
of (i) 56,854,405 outstanding shares of Common Stock as of December 7, 1999, as
reported in the Company's Schedule 13E-4 Issuer Tender Offer Statement filed
with the Commission on December 10, 1999 and (ii) 437,749 shares of Common Stock
issuable upon conversion of the Series B Shares deemed to be beneficially owned
by such Reporting Persons.
(c) The transactions in the Common Stock by the Reporting Persons
during the past 60 days are set forth on Annex A hereto.
(d) Not Applicable.
(e) Not Applicable.
7
<PAGE>
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.
Dated: December 29, 1999
FIXED INCOME ASSOCIATES, INC.
By: /s/ Nancy G. Zimmerman
------------------------------
Name: Nancy G. Zimmerman
Title: President
8
<PAGE>
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.
Dated: December 29, 1999
BRACEBRIDGE CAPITAL, L.P.
By: FIXED INCOME ASSOCIATES, INC.,
its General Partner
By: /s/ Nancy G. Zimmerman
----------------------------------
Name: Nancy G. Zimmerman
Title: President
9
<PAGE>
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.
Dated: December 29, 1999
BRACEBRIDGE CAPITAL LLC
By: FIXED INCOME ASSOCIATES, INC.,
its Managing Member
By: /s/ Nancy G. Zimmerman
--------------------------------
Name: Nancy G. Zimmerman
Title: President
10
<PAGE>
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.
Dated: December 29, 1999
/s/ Nancy G. Zimmerman
------------------------------------
NANCY G. ZIMMERMAN
11
<PAGE>
ANNEX A
Transactions in Shares of Common Stock and Series B Preferred Stock
within the Last 60 Days1
Aggregate Aggregate
Price Per Common Preferred
Date Share Share Amount Share Amount FIFI II L.P. FFI Fund Ltd.
- ---- ----- ------------ ------------ ------------ -------------
11/15/99 3.94 31,300 15,000 16,300
11/16/99 3.94 28,600 14,000 14,600
11/17/99 3.86 30,100 15,000 15,100
11/18/99 3.81 10,000 10,000
12/6/99 9.69 800 602
12/6/99 3.75 12,200 12,200
12/7/99 9.61 30,200 22,761
12/7/99 3.75 25,000 25,000
12/8/99 9.25 10,000 7,537
12/8/99 3.75 25,000 25,000
12/9/99 3.75 25,000 25,000
12/10/99 9.25 2,200 1,658
12/10/99 3.98 75,000 50,000 25,000
12/13/99 4.26 161,500 80,750 80,750
12/14/99 4.25 62,400 32,400 30,000
12/15/99 4.29 253,900 100,000 153,900
12/16/99 4.25 27,800 13,800 14,000
12/17/99 4.31 323,200 123,200 200,000
12/20/99 4.31 30,000 15,000 15,000
12/20/99 9.56 7,900 5,954
12/21/99 4.31 35,000 15,000 20,000
12/22/99 4.31 120,700 60,000 60,700
12/23/99 4.25 42,600 21,000 21,600
12/27/99 4.25 68,200 34,100 34,100
12/29/99 4.12 15,200 15,200
12/29/99 9.56 15,000 11,306
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1 All transactions in shares of Common Stock, as well as Series B Preferred
Stock, that were effected during the past sixty days have been open market
purchases.
