SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Schedule 13D
Under the Securities Exchange Act of 1934 (Amendment No. 5 )
AVESIS INCORPORATED
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(Name of issuer)
COMMON STOCK
------------
(Title of Class of Securities)
053650107
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(CUSIP Number)
William L. Richter, Richter & Co., Inc.
450 Park Avenue, New York, NY 10022 (212) 421-6300
with copies to:
Joel H. Alperstein, Avesis Incorporated
3724 N. Third St., Suite 300, Phoenix, AZ 85012
(602) 241-3400
-----------------------------------------------
(Name, Address and Telephone Number of Person
Authorized to Receive Notes and Communications)
May 27, 1998
------------
(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 ss.ss. 240.13d-1(e), 240.13d-1(f) or 240.13d-1(g), check the
following box [ ].
(Continued on following page(s))
Page 1 of 8 Pages
<PAGE>
CUSIP No. 053650107 Page 2 of 8 Pages
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- --------------------------------------------------------------------------------
1 NAME OF REPORTING PERSONS SS. OR I.R.S. IDENTIFICATION NOS. OF ABOVE
PERSON
William L. Richter
- --------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (See Instructions)
(a) [x]
(b) [ ]
- --------------------------------------------------------------------------------
3 SEC USE ONLY
- --------------------------------------------------------------------------------
4 SOURCE OF FUNDS (See Instructions)
N/A
- --------------------------------------------------------------------------------
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 1,694,110 (including shares shown on pages 3-4 hereof)
Beneficially --------------------------------------------------------------
Owned by 8 SHARED VOTING POWER
Each
Reporting --------------------------------------------------------------
Person 9 SOLE DISPOSITIVE POWER
With 1,694,110 (including shares shown on pages 3-4 hereof)
--------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
- --------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
1,694,110
- --------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES
(See Instructions)
[ ]
- --------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
32.0%
- --------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON
IN
- --------------------------------------------------------------------------------
<PAGE>
CUSIP No. 053650107 Page 3 of 8 Pages
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- --------------------------------------------------------------------------------
1 NAME OF REPORTING PERSONS SS. OR I.R.S. IDENTIFICATION NOS. OF ABOVE
PERSON
Richter & Co., Inc.
- --------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (See Instructions)
(a) [x]
(b) [ ]
- --------------------------------------------------------------------------------
3 SEC USE ONLY
- --------------------------------------------------------------------------------
4 SOURCE OF FUNDS (See Instructions)
N/A
- --------------------------------------------------------------------------------
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 684,000
Beneficially ------------------------------------------------------------
Owned by 8 SHARED VOTING POWER
Each
Reporting ------------------------------------------------------------
Person 9 SOLE DISPOSITIVE POWER
With 684,000
------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
- --------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
684,000
- --------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES
(See Instructions)
[ ]
- --------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
12.9%
- --------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON
CO
- --------------------------------------------------------------------------------
<PAGE>
CUSIP No. 053650107 Page 4 of 8 Pages
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- --------------------------------------------------------------------------------
1 NAME OF REPORTING PERSONS SS. OR I.R.S. IDENTIFICATION NOS. OF ABOVE
PERSON
Richter Investment Corp.
- --------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (See Instructions)
(a) [x]
(b) [ ]
- --------------------------------------------------------------------------------
3 SEC USE ONLY
- --------------------------------------------------------------------------------
4 SOURCE OF FUNDS (See Instructions)
N/A
- --------------------------------------------------------------------------------
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 722,830
Beneficially ------------------------------------------------------------
Owned by 8 SHARED VOTING POWER
Each
Reporting ------------------------------------------------------------
Person 9 SOLE DISPOSITIVE POWER
With 722,830
------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
- --------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
722,830
- --------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES
(See Instructions)
[ ]
- --------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
13.6%
- --------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON
CO
- --------------------------------------------------------------------------------
<PAGE>
Item 1. Security and Issuer.
This Statement relates to Common Stock, $.01 par value, of Avesis
Incorporated (the "Issuer"). The principal executive offices of the Issuer are
located at 3724 North Third Street, Suite 300, Phoenix, Arizona 85012.
Item 2. Identity and Background.
This statement is being filed by:
(a) William L. Richter, Richter Investment Corp., a Delaware
Corporation, and Richter & Co., Inc., a Delaware Corporation
(b) Filing person's address: Richter & Co., Inc. 450 Park Avenue,
28th Floor, New York, NY 10022
(c) William L. Richter is President of Richter & Co., Inc., which
is a broker-dealer wholly owned by Richter Investment Corp., a
holding company. The names, residence or business addresses
and present principal occupation or employment of the
executive officers and directors of Richter Investment Corp.,
and Richter & Co., Inc. are set forth in Appendix 1 hereto and
incorporated herein by this reference.
(d) To the best of the filing persons knowledge, during the last
five years, none of the persons named in this Item 2 or in
Appendix 1 hereto has been convicted in a criminal proceeding
(excluding traffic violations or similar misdemeanors).
(e) To the best of the filing persons knowledge, during the last
five years, none of the persons named in this Item 2 or in
Appendix 1 hereto has been 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.
(f) Mr. Richter is a citizen of the United States.
Page 5 of 8 Pages
<PAGE>
Item 3. Source and Amount of Funds or Other Consideration.
Pursuant to an Offer to Exchange for the Issuer's Class A, Nonvoting
Cumulative Convertible Preferred Stock, Series 2 ("Series 2 Shares"), dated May
27, 1998, all tendering shareholders received the Issuer's Class A, Senior
Nonvoting Cumulative Convertible Preferred Stock, Series A ("Series A Shares"),
at a one share to one share exchange rate. Mr. Richter tendered 50,099 Series 2
Shares, convertible into 125,248 shares of the Common Stock of the Issuer, and
received 50,099 Series A Shares, which as of May 27, 1998 were convertible into
500,990 shares of the Common Stock of the Issuer. There were no funds or other
consideration used to tender the Series 2 Shares in the Offer to Exchange.
Item 4. Purpose of Transaction.
All of the Issuer's shares held by William L. Richter, Richter
Investment Corp., Richter & Co., Inc. and the persons listed in Appendix 1 are
held for investment purposes only. Except as described above and that Mr.
Richter is the Co-Chairman ( and a director) of the Issuer's Board of Directors,
none of the above persons has any present plan or proposal that relates to or
would result in any of the actions described in clauses (a) through (j) of Item
4 of Schedule 13D, although such persons may from time to time in the future
acquire or sell shares of Common Stock or securities convertible into Common
Stock. At present, each of such persons contemplates that such additional
shares, if any, would also be purchased for investment purposes only. Statements
as to the persons listed in Appendix 1 are made to the knowledge of the filing
persons.
Item 5. Interest In Securities of the Issuer.
(a) The aggregate number and percentage of Issuer Common Stock
beneficially owned by William L. Richter is 1,694,110 and 32.0%, respectively
(including the securities referred to in the next sentence). Richter Investment
Corp. is the beneficial owner of 722, 830 shares or 13.6% of Common Stock
(including the securities referred to in the next sentence). Richter & Co., Inc.
is the beneficial owner of 684,000 shares or 12.9% of Common Stock.
(b) See Items 7 through 10 on the Cover Pages of this Amendment No. 5
to Schedule 13D.
(c) The following transactions were effected since 60 days prior to the
date of the event that requires filing of this statement:
Page 6 of 8 Pages
<PAGE>
(i) Pursuant to an Offer to Exchange for the Issuer's Class A,
Nonvoting Cumulative Convertible Preferred Stock, Series 2 ("Series 2 Shares"),
dated May 27, 1998, all tendering shareholders received the Issuer's Class A,
Senior Nonvoting Cumulative Convertible Preferred Stock, Series A ("Series A
Shares"), at a one share to one share exchange rate. Mr. Richter tendered 50,099
Series 2 Shares, convertible into 125,248 shares of the Common Stock of the
Issuer, and received 50,099 Series A Shares, which as of May 27, 1998 were
convertible into 500,990 shares of the Common Stock of the Issuer. There were no
funds or other consideration used to tender the Series 2 Shares in the Offer to
Exchange.
(ii) Richter & Co., Inc. and William L. Richter acquired 150,000 and
100,000 shares of Common Stock of the Issuer, respectively, pursuant to the
Supplemental Investment Banking Agreement entered into on April 23, 1998.
(d) Not applicable.
(e) Not applicable.
Item 6. Contracts, Arrangements, Understandings or Relationships With Respect
to Securities of the Issuer.
Not applicable.
Item 7. Material to be Filed as Exhibits.
1. Stock Purchase Warrant issued to Richter & Co., Inc. dated March 18,
1993 for the purchase of 240,000 shares of the Issuer's Common Stock. *
2. Stock Purchase Warrant issued to William L. Richter dated March 18,
1993 for the purchase of 160,000 shares of the Issuer's Common Stock. *
3. Registration Rights Agreement dated March 18, 1993 among Avesis
Incorporated, National Health Enterprises, Inc., Alan Cohn and Kenneth L. Blum,
Jr. (as referred to in Section 8 of the above Warrants). *
4. Certification of Joint Filing pursuant to Rule 13d-1(f). **
5. Supplemental Agreement to the December 5, 1994 Investment Banking
Agreement, filed as Exhibit 1 hereto.
- ---------------------
* Incorporated by reference from Amendment No. 2 to Schedule 13D of the
filing persons, dated March 18, 1993
** Incorporated by reference from Amendment No. 4 to Schedule 13D of the
filing persons, dated November 29, 1994
Page 7 of 8 Pages
<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.
June 14, 1998
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/s/ William L. Richter
-----------------------------------
William L. Richter
RICHTER & CO., INC.
By: /s/ William L. Richter
--------------------------------
William L. Richter
President
RICHTER INVESTMENT CORP.
By: /s/ William L. Richter
--------------------------------
William L. Richter
President
Page 8 of 8 Pages
<PAGE>
APPENDIX 1
<TABLE>
<S> <C> <C> <C>
1. Richter Investment Corp.
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Directors
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Richard L. Rubin 36 The Crossings Professor of Political Science and Public
Purchase, NY 10577 Policy at Swarthmore College; President of
the Dedalus Foundation, Inc.; engaged in
various investments
William L. Richter 450 Park Avenue Chairman and President of Richter Investment
28th Floor Corp. and Richter & Co., Inc.; Co-Chairman
New York, NY 10022 of Avesis Incorporated, Vice-Chairman of
Rent-A-Wreck of America, Inc.
Executive Officers
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William L. Richter 450 Park Avenue President
28th Floor
New York, NY 10022
L. Christine Lynch 450 Park Avenue Vice President and Secretary
28th Floor
New York, NY 10022
2. Richter & Co., Inc.
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Directors
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William L. Richter 450 Park Avenue Directors
28th Floor
New York, NY 10022
Executive Officers
------------------
William L. Richter 450 Park Avenue President
28th Floor
New York, NY 10022
L. Christine Lynch 450 Park Avenue Vice President
28th Floor
New York, NY 10022
</TABLE>
EXHIBIT 1
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SUPPLEMENTAL AGREEMENT TO THE DECEMBER 5, 1994
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INVESTMENT BANKING AGREEMENT
----------------------------
THIS AGREEMENT is entered into this 23rd day of April, 1998, by and
between Richter & Co., Inc. ("Richter") and Avesis Incorporated, a Delaware
corporation (the "Company"), and supplements the December 5, 1994 Agreement
between the parties, which remains in effect.
1. The Company acknowledges that Richter has provided the conceptual idea for
the Section 3(a)(9) exchange offer as a means of addressing management's
concerns about the significant market effects arising from the outstanding
Class A, Cumulative Convertible Preferred Stock, Series 2, and its
accumulated dividend arrearages. Richter has also devised the terms of the
exchange offer and submitted such to the Company's board of directors,
which has approved such terms and conditions.
2. For such services, Richter shall be entitled to a fee of $50,000 in cash
and 250,000 shares of Company's Common Stock, par value $.01, for its
services under this Supplemental Agreement and any unpaid fees under the
December 5, 1994 Agreement. Such fee will be payable upon the mailing to
shareholders of the exchange offer of the Class A, Cumulative Convertible
Preferred Stock, Series 2 and the 250,000 shares will be issued as the
Company is instructed in a letter from Richter to the Company.
3. The parties agree that Richter shall limit its services so that they will
not constitute "solicitation" as the term is understood for purposes of
Section 3(a)(9) of the Securities Act of 1933, as amended.
AVESIS INCORPORATED
By: /s/ Joel H. Alperstein
--------------------------------
Its: Treasurer
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RICHTER & CO., INC.
By: /s/ William L. Richter
--------------------------------
Its: President
-------------------------------
