<PAGE> 1
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
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)
(Amendment No. __)*
Clarion Technologies, Inc.
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(Name of Issuer)
Common Stock, $0.001 par value
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(Title of Class of Securities)
180606 10 5
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(CUSIP Number)
William Blair Mezzanine Capital Fund III, L.P.
Attention: Terrance M. Shipp
222 West Adams Street
Chicago, Illinois 60606
with a copy to:
Laurence R. Bronska, Esq.
Altheimer & Gray
10 South Wacker Drive
Chicago, Illinois 60606
(312) 715-4927
(Name, Address and Telephone Number of Person
Authorized to Receive Notices and Communications)
July 21, 2000
(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(e), 13d-1(f) or 13d-1(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.
*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, as amended ("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> 2
CUSIP NO. 180606 10 5 13D PAGE 2 OF 23 PAGES
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1 NAMES OF REPORTING PERSONS/I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS
(ENTITIES ONLY)
William Blair Mezzanine Capital Fund III, L.P.
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2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP
(See Instructions)
(a) [ ]
(b) [X]
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3 SEC USE ONLY
------------------------------------------------------------------------------
4 SOURCE OF FUNDS (See Instructions)
WC.
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5 CHECK IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT
TO ITEM 2(d) OR 2(e) [ ]
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6 CITIZENSHIP OR PLACE OF ORGANIZATION
Delaware
------------------------------------------------------------------------------
7 SOLE VOTING POWER
NUMBER OF
- 0 -
SHARES -------------------------------------------------------------
8 SHARED VOTING POWER
BENEFICIALLY
2,847,797 (1) (2) (3)
OWNED BY EACH -------------------------------------------------------------
9 SOLE DISPOSITIVE POWER
REPORTING
2,847,797 (1) (2) (3)
PERSON -------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
WITH
- 0 -
------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
2,847,797
------------------------------------------------------------------------------
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)
12.1% (4)
------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON (See Instructions)
PN
------------------------------------------------------------------------------
(1) Based upon Warrant to purchase 2,847,797 shares of Common Stock.
See item 6.
(2) Voting power is exercised solely by Issuer until such time as the
Warrant is exercised. See item 5.
(3) Voting power is exercised through its sole general partner, William
Blair Mezzanine Capital Partners III, L.L.C.
(4) Based on 20,620,495 shares of Common Stock outstanding as of
July 14, 2000.
<PAGE> 3
CUSIP NO. 180606 10 5 13D PAGE 3 OF 23 PAGES
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1 NAMES OF REPORTING PERSONS/I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS
(ENTITIES ONLY)
William Blair Mezzanine Capital Partners III, L.L.C.
------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP
(See Instructions)
(a) [ ]
(b) [X]
------------------------------------------------------------------------------
3 SEC USE ONLY
------------------------------------------------------------------------------
4 SOURCE OF FUNDS (See Instructions)
WC
------------------------------------------------------------------------------
5 CHECK IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT
TO ITEM 2(d) OR 2(e) [ ]
------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
Delaware
------------------------------------------------------------------------------
7 SOLE VOTING POWER
NUMBER OF
- 0 -
SHARES -------------------------------------------------------------
8 SHARED VOTING POWER
BENEFICIALLY
2,847,797 (1) (2) (3)
OWNED BY EACH -------------------------------------------------------------
9 SOLE DISPOSITIVE POWER
REPORTING
2,847,797 (1) (2) (3)
PERSON -------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
WITH
- 0 -
------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
2,847,797 (2) (3)
------------------------------------------------------------------------------
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)
12.1% (4)
------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON (See Instructions)
00
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(1) Voting power is exercised solely by Issuer until such time as the
Warrant is exercised. See item 5.
(2) Solely in its capacity as the sole general partner of William Blair
Mezzanine Capital Fund III, L.P.
(3) Power is exercised through its members, William Blair & Company,
L.L.C., and Wilblairco Associates, and its Initial Managing Directors,
Timothy J. MacKenzie, Terrance M. Shipp and Marc J. Walfish.
(4) Based on 20,620,495 shares of Common Stock outstanding as of
July 14, 2000.
<PAGE> 4
CUSIP NO. 180606 10 5 13D PAGE 4 OF 23 PAGES
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1 NAMES OF REPORTING PERSONS/I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS
(ENTITIES ONLY)
William Blair & Company, L.L.C.
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2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP
(See Instructions)
(a) [ ]
(b) [X]
------------------------------------------------------------------------------
3 SEC USE ONLY
------------------------------------------------------------------------------
4 SOURCE OF FUNDS (See Instructions)
WC
------------------------------------------------------------------------------
5 CHECK IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT
TO ITEM 2(d) OR 2(e) [ ]
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6 CITIZENSHIP OR PLACE OF ORGANIZATION
Illinois
------------------------------------------------------------------------------
7 SOLE VOTING POWER
NUMBER OF
- 0 -
SHARES -------------------------------------------------------------
8 SHARED VOTING POWER
BENEFICIALLY
2,847,797 (1) (2) (3)
OWNED BY EACH -------------------------------------------------------------
9 SOLE DISPOSITIVE POWER
REPORTING
- 0 -
PERSON -------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
WITH
2,847,797 (1) (2) (3)
------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
2,847,797 (2) (3)
------------------------------------------------------------------------------
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)
12.1% (4)
------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON (See Instructions)
OO
------------------------------------------------------------------------------
(1) Voting power is exercised solely by Issuer until such time as the
Warrant is exercised. See item 5.
(2) Solely in its capacity as the sole general partner of William Blair
Mezzanine Capital Partners III, L.L.C.. See Item 5.
(3) Voting power is exercised through its principals listed on Schedule I
attached hereto and incorporated herein by this reference.
(4) Based on 20,620,495 shares of Common Stock outstanding as of
July 14, 2000.
<PAGE> 5
CUSIP NO. 180606 10 5 13D PAGE 5 OF 23 PAGES
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1 NAMES OF REPORTING PERSONS/I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS
(ENTITIES ONLY)
Timothy J. MacKenzie
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2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP
(See Instructions)
(a) [ ]
(b) [X]
------------------------------------------------------------------------------
3 SEC USE ONLY
------------------------------------------------------------------------------
4 SOURCE OF FUNDS (See Instructions)
WC.
------------------------------------------------------------------------------
5 CHECK IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT
TO ITEM 2(d) OR 2(e) [ ]
------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
United States
------------------------------------------------------------------------------
7 SOLE VOTING POWER
NUMBER OF
- 0 -
SHARES -------------------------------------------------------------
8 SHARED VOTING POWER
BENEFICIALLY
2,847,797 (1) (2)
OWNED BY EACH -------------------------------------------------------------
9 SOLE DISPOSITIVE POWER
REPORTING
- 0 -
PERSON -------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
WITH
2,847,797 (1) (2)
------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
2,847,797 (2)
------------------------------------------------------------------------------
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)
12.1% (3)
------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON (See Instructions)
IN
------------------------------------------------------------------------------
(1) Voting power is exercised solely by Issuer until such time as the
Warrant is exercised. See item 5.
(2) Solely in his capacity as an Initial Managing Director of William Blair
Mezzanine Capital Partners III, L.L.C. See Item 5.
(3) Based on 20,620,495 shares of Common Stock outstanding as of
July 14, 2000.
<PAGE> 6
CUSIP NO. 180606 10 5 13D PAGE 6 OF 23 PAGES
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1 NAMES OF REPORTING PERSONS/I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS
(ENTITIES ONLY)
Terrance M. Shipp
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2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP
(See Instructions)
(a) [ ]
(b) [X]
------------------------------------------------------------------------------
3 SEC USE ONLY
------------------------------------------------------------------------------
4 SOURCE OF FUNDS (See Instructions)
WC.
------------------------------------------------------------------------------
5 CHECK IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT
TO ITEM 2(d) OR 2(e) [ ]
------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
United States
------------------------------------------------------------------------------
7 SOLE VOTING POWER
NUMBER OF
- 0 -
SHARES -------------------------------------------------------------
8 SHARED VOTING POWER
BENEFICIALLY
2,847,797 (1) (2)
OWNED BY EACH -------------------------------------------------------------
9 SOLE DISPOSITIVE POWER
REPORTING
- 0 -
PERSON -------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
WITH
2,847,797 (2)
------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
2,847,797 (2)
------------------------------------------------------------------------------
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)
12.1% (3)
------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON (See Instructions)
IN
------------------------------------------------------------------------------
(1) Voting power is exercised solely by Issuer until such time as
the Warrant is exercised. See item 5.
(2) Solely in his capacity as an Initial Managing Director of William Blair
Mezzanine Capital Partners III, L.L.C. See Item 5.
(3) Based on 20,620,495 shares of
Common Stock outstanding as of July 14, 2000.
<PAGE> 7
CUSIP NO. 180606 10 5 13D PAGE 7 OF 23 PAGES
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1 NAMES OF REPORTING PERSONS/I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS
(ENTITIES ONLY)
Marc J. Walfish
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2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP
(See Instructions)
(a) [ ]
(b) [X]
------------------------------------------------------------------------------
3 SEC USE ONLY
------------------------------------------------------------------------------
4 SOURCE OF FUNDS (See Instructions)
WC.
------------------------------------------------------------------------------
5 CHECK IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT
TO ITEM 2(d) OR 2(e) [ ]
------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
United States
------------------------------------------------------------------------------
7 SOLE VOTING POWER
NUMBER OF
- 0 -
SHARES -------------------------------------------------------------
8 SHARED VOTING POWER
BENEFICIALLY
2,847,797 (1)(2)
OWNED BY EACH -------------------------------------------------------------
9 SOLE DISPOSITIVE POWER
REPORTING
- 0 -
PERSON -------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
WITH
2,847,797 (2)
------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
2,847,797 (2)
------------------------------------------------------------------------------
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)
12.1% (3)
------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON (See Instructions)
IN
------------------------------------------------------------------------------
(1) Voting power is exercised solely by Issuer until such time as the
Warrant is exercised. See item 5.
(2) Solely in his capacity as an Initial Managing Director of William Blair
Mezzanine Capital Partners III, L.L.C. See Item 5.
(3) Based on 20,620,495 shares of Common Stock outstanding as of
July 14, 2000.
<PAGE> 8
CUSIP NO. 180606 10 5 13D PAGE 8 OF 23 PAGES
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1 NAMES OF REPORTING PERSONS/I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS
(ENTITIES ONLY)
Wilblairco Associates
------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP
(See Instructions)
(a) [ ]
(b) [X]
------------------------------------------------------------------------------
3 SEC USE ONLY
------------------------------------------------------------------------------
4 SOURCE OF FUNDS (See Instructions)
WC
------------------------------------------------------------------------------
5 CHECK IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT
TO ITEM 2(d) OR 2(e) [ ]
------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
Illinois
------------------------------------------------------------------------------
7 SOLE VOTING POWER
NUMBER OF
- 0 -
SHARES -------------------------------------------------------------
8 SHARED VOTING POWER
BENEFICIALLY
2,847,797 (1) (2) (3)
OWNED BY EACH -------------------------------------------------------------
9 SOLE DISPOSITIVE POWER
REPORTING
- 0 -
PERSON -------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
WITH
2,847,797 (1) (2) (3)
------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
2,847,797 (2) (3)
------------------------------------------------------------------------------
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)
12.1% (4)
------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON (See Instructions)
OO
------------------------------------------------------------------------------
(1) Voting power is exercised solely by Issuer until such time as the
Warrant is exercised. See item 5.
(2) Solely in its capacity as a member of William Blair Mezzanine Capital
Partners III, L.L.C.. See Item 5.
(3) Voting power is exercised through its principals listed on Schedule
II attached hereto and incorporated herein by this reference.
(4) Based on 20,620,495 shares of Common Stock outstanding as of
July 14, 2000.
Page 8 of 25
<PAGE> 9
Item 1. Security and Issuer.
This Schedule 13D relates to the shares of common stock, $0.001 par
value (the "Common Stock") of Clarion Technologies, Inc., a Delaware corporation
("Issuer").
The principal executive offices of Issuer are located at 235 Central
Avenue, Holland, MI 49423.
Item 2. Identity and Background.
(a) Pursuant to Rule 13d-1(k)(1) of Regulation 13D-G under the Securities
Exchange Act of 1934, as amended (the "Act"), the undersigned hereby file this
Schedule 13D on behalf of William Blair Mezzanine Capital Fund III, L.P., a
Delaware limited partnership ("Mezzanine Fund"), William Blair Mezzanine Capital
Partners III, L.L.C., an Illinois limited liability company ("Blair General
Partner"), William Blair & Company, L.L.C., an Illinois limited liability
company ("Blair"), Wilblairco Associates, an Illinois general partnership
("Blairco"), Timothy J. MacKenzie ("MacKenzie"), Terrance M. Shipp ("Shipp") and
Marc J. Walfish ("Walfish"). Mezzanine Fund, Blair General Partner, Blair,
Blairco, MacKenzie, Shipp and Walfish are sometimes hereinafter referred to as
the "Reporting Persons." The Reporting Persons are making this single, joint
filing because they may be deemed to constitute a "group" within the meaning of
Section 13d-5(b)(1) of the Act, although neither the fact of this filing nor
anything contained herein shall be deemed to be an admission by the Reporting
Persons that a "group" exists.
(b) - (c)
Mezzanine Fund
Mezzanine Fund is a Delaware limited partnership, the principal
business of which is that of a private investment partnership. The principal
business address of Mezzanine Fund, which also serves as its principal office,
is 222 West Adams Street, Chicago, Illinois 60606. Pursuant to Instruction C to
Schedule 13D of the Act, certain information with respect to Blair General
Partner, the sole general partner of Mezzanine Fund, is set forth below.
Blair General Partner
Blair General Partner is Delaware limited liability company, the principal
business of which is serving as the sole general partner of Mezzanine Fund. The
principal address of Blair General Partner, which also serves as its principal
office, is 222 West Adams Street, Chicago, Illinois 60606. Pursuant to
Instruction C to Schedule 13D of the Act, certain information with respect to
MacKenzie, Shipp and Walfish, Initial Managing Directors of Blair General
Partner, and with respect to Blair and Blairco, members of Blair General Partner
is set forth below. Two other members of Blair General Partner, Thomas F.
Campion ("Campion") and David M. Jones ("Jones") are each a member and a
Managing Director of Blair General Partner. Campion and Jones are not Reporting
Persons because they do not have voting or dispositive power with respect to
Issuer's securities. Campion and Jones each have a business address of 222
West Adams Street, Chicago, Illinois 60606. Jones' principal occupation is
serving as a Managing Director of Blair General Partner. Campion's principal
occupation is serving as a Managing Director of Blair General Partner and as a
principal of Blair.
Blair
Blair is an Illinois limited liability company, the principal business
of which is providing a wide range of financial services to businesses,
governments, financial institutions and individuals, primarily in the United
States. The principal address of Blair, which also serves as its principal
office, is 222 West Adams Street, Chicago, Illinois 60606. Pursuant to
Instruction C to Schedule 13D of the Act, certain information with respect to
the principals of Blair is set forth on Schedule I attached hereto and
incorporated herein by this reference.
Page 9 of 23
<PAGE> 10
Blairco
Blairco is an Illinois general partnership, the principal business of
which is that of a private investment partnership. The principal business
address of Blairco, which also serves as its principal office, is 222 West Adams
Street, Chicago, Illinois 60606. Pursuant to Instruction C to Schedule 13D of
the Act, certain information with respect to the principals of Blairco is set
forth on Schedule II attached hereto and incorporated herein by this reference.
MacKenzie
MacKenzie's business address is 222 West Adams Street, Chicago, Illinois
60606. His present principal occupation is serving as an Initial Managing
Director of Blair General Partner and as a principal of Blair.
Shipp
Shipp's business address is 222 West Adams Street, Chicago, Illinois 60606.
His present principal occupation is serving as an Initial Managing Director of
Blair General Partner and as a principal of Blair.
Walfish
Walfish's business address is 222 West Adams Street, Chicago, Illinois
60606. His present principal occupation is serving as an Initial Managing
Director of Blair General Partner and as a principal of Blair.
(d) None of the entities or persons identified in this Item 2 has,
during the last five years, been convicted in a criminal proceeding (excluding
traffic violations or similar misdemeanors).
(e) None of the entities or persons identified in this Item 2 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.
(f) Mezzanine Fund, Blair General Partner, Blair and Blairco are all
Illinois entities. All of the natural persons identified in this Item 2 are
citizens of the United States except as otherwise indicated.
Item 3. Source and Amount of Funds or Other Consideration.
The source and amount of funds or other consideration used by the Reporting
Persons to purchase the Note (as defined below) and the Warrant (as defined
below) consisted of Thirty Million Dollars ($30,000,000) (of which no more then
$7,461,228 is allocable to the Warrant) of working capital invested by Mezzanine
Fund. The "Note" means the Senior Subordinated Note dated July 21, 2000 in the
principal amount of Thirty Million Dollars ($30,000,000) to the order of
Mezzanine Fund. The "Warrant" means the Warrant to Purchase 2,847,797 shares of
Common Stock issued to Mezzanine Fund. The Note and Warrant are attached as
exhibits hereto and are incorporated herein by reference.
Item 4. Purpose of Transaction.
Mezzanine Fund acquired the Warrant in connection with the purchase of
the Note pursuant to a Senior Subordinated Loan Agreement dated July 21, 2000,
by and among Issuer, Issuer's subsidiaries party
Page 10 of 23
<PAGE> 11
thereto and Mezzanine Fund (the "Senior Subordinated Loan Agreement") attached
as an exhibit hereto and incorporated herein by reference. Under the terms of
the Loan Agreement, Issuer is bound by affirmative and negative covenants and
will remain bound by certain of the covenants as long as Mezzanine Fund owns 50%
of the Warrant or the shares into which the Warrant is exercisable.
Under the Warrant, Mezzanine Fund is granted the right to observe
meetings of Issuer's Board of Directors and Issuer undertakes to use its best
efforts to recommend a representative of Mezzanine Fund as a director at the
next annual or special shareholders meeting as long as Mezzanine Fund and its
direct transferees own 50% or more of the Warrant or the shares into which the
Warrant is exercisable. The Warrant confers no voting power upon Mezzanine Fund
prior to its exercise.
Mezzanine Fund may exercise the Warrant at any time and has acquired
the Warrant for investment purposes. Subsequent to exercise of the Warrant,
Mezzanine Fund intends to sell an as yet undetermined amount of shares of Common
Stock pursuant to transactions exempt from registration under federal securities
laws or, as market conditions permit, after effectiveness of the registration
statement(s) filed by the Issuer pursuant to a Registration Rights Agreement
(the "Registration Rights Agreement") dated July 21, 2000 between Issuer and
Mezzanine Fund. The Registration Rights Agreement is attached as an exhibit
hereto and is incorporated herein by reference.
Present Plans or Proposals. Except as set forth in this Item 4, the
Reporting Persons have no present plans or proposals that relate to or that
would result in any of the actions specified in clause (a) through (j) of Item 4
of Schedule 13 D of the Act.
Item 5. Interest in Securities of Issuer.
(a)
Mezzanine Fund
Upon exercise of the Warrant, which may be exercised at any time, the
aggregate number of shares that Mezzanine Fund owns beneficially, pursuant to
Rule 13d-3 of the Act, is 2,847,797 shares of Common Stock, which constitutes
approximately 12.1% of the outstanding shares of Common Stock.
Blair General Partner
As the sole general partner of Mezzanine Fund, Blair General Partner
may, pursuant to Rule 13d-3 of the Act, be deemed to be the beneficial owner of
2,847,797 shares of Common Stock, which constitutes approximately 12.1% of the
outstanding shares of Common Stock. Blair General Partner disclaims beneficial
ownership of all such shares of Common Stock.
Blair
As a member of Blair General Partner, Blair may, pursuant to Rule 13d-3
of the Act, be deemed to be the beneficial owner of 2,847,797 shares of Common
Stock, which constitutes approximately 12.1% of the outstanding shares of Common
Stock. Blair disclaims beneficial ownership of all such shares of Common Stock.
Page 11 of 23
<PAGE> 12
Blairco
As a member of Blair General Partner, Blairco may, pursuant to Rule
13d-3 of the Act, be deemed to be beneficial owner of 2,847,797 shares of Common
Stock, which constitutes approximately 12.1% of the outstanding shares of Common
Stock. Blairco disclaims beneficial ownership of all such shares of Common
Stock. Blairco disclaims beneficial ownership of all such shares of Common
Stock.
MacKenzie
As an Initial Managing Director of Blair General Partner, MacKenzie may,
pursuant to Rule 13d-3 of the Act, be deemed to be the beneficial owner of
2,847,797 shares of Common Stock, which constitutes approximately 12.1% of the
outstanding shares of Common Stock. MacKenzie disclaims beneficial ownership of
all such shares of Common Stock.
Shipp
As an Initial Managing Director of Blair General Partner, Shipp may,
pursuant to Rule 13d-3 of the Act, be deemed to be the beneficial owner of
2,847,797 shares of Common Stock, which constitutes approximately 12.1% of the
outstanding shares of Common Stock. Shipp disclaims beneficial ownership of all
such shares of Common Stock.
Walfish
As an Initial Managing Director of Blair General Partner, Walfish may,
pursuant to Rule 13d-3 of the Act, be deemed to be the beneficial owner of
2,847,797 shares of Common Stock, which constitutes approximately 12.1% of the
outstanding shares of Common Stock. Walfish disclaims beneficial ownership of
all such shares of Common Stock.
(b)
Mezzanine Fund
Acting through its sole general partner, Mezzanine Fund has the sole
power to dispose or to direct the disposition of 2,847,797 shares of Common
Stock. Voting power is exercised solely by Issuer until such time as the Warrant
is exercised.
Blair General Partner
Acting through its Initial Managing Directors and in its capacity as the
sole general partner of Mezzanine Fund, Blair General Partner has the sole power
to dispose or to direct the disposition of 2,847,797 shares of Common Stock.
Voting power is exercised solely by Issuer until such time as the Warrant is
exercised.
Blair
Acting through its principals and in its capacity as a member of Blair
General Partner, which is the sole general partner of Mezzanine Fund, Blair may
be deemed to have shared power with MacKenzie, Shipp and Walfish (as the other
members of Blair General Partner) to dispose or to direct the disposition of
2,847,797 shares of Common Stock held by Mezzanine Fund. Voting power is
exercised solely by Issuer until such time as the Warrant is exercised.
Page 12 of 23
<PAGE> 13
MacKenzie
As an Initial Managing Director of Blair General Partner, which is the sole
general partner of Mezzanine Fund, MacKenzie may be deemed to have shared power
with Blair, Shipp and Walfish (as the other members of Blair General Partner) to
dispose or to direct the disposition of 2,847,797 shares of Common Stock held by
Mezzanine Fund. Voting power is exercised solely by Issuer until such time as
the Warrant is exercised.
Shipp
As an Initial Managing Director of Blair General Partner, which is the sole
general partner of Mezzanine Fund, Shipp may be deemed to have shared power with
MacKenzie, Blair and Walfish (as the other members of Blair General Partner) to
dispose or to direct the disposition of 2,847,797 shares of Common Stock held by
Mezzanine Fund. Voting power is exercised solely by Issuer until such time as
the Warrant is exercised.
Walfish
As an Initial Managing Director of Blair General Partner, which is the sole
general partner of Mezzanine Fund, Walfish may be deemed to have shared power
with MacKenzie, Blair and Shipp (as the other members of Blair General Partner)
to dispose or to direct the disposition of 2,847,797 shares of Common Stock held
by Mezzanine Fund. Voting power is exercised solely by Issuer until such time as
the Warrant is exercised.
(c) Except as set forth in Item 4 above, to the best of the knowledge
of each of the Reporting Persons, none of the persons named in response to
paragraph (a) of this Item 5 has effected any other transactions in Common Stock
during the past sixty (60) days.
(d) None.
(e) It is inapplicable for the purposes herein to state the date on
which the Reporting Persons ceased to be the owners of more than five percent
(5%) of the outstanding shares.
Item 6. Contracts, Arrangements, Understandings or Relationships with Respect
to Securities of the Issuer.
Terms of the Warrant. Mezzanine Fund, as holder of the Warrant, is
entitled, at Mezzanine Fund's option and at any time prior to July 21, 2010, to
exercise the Warrant in whole, or if in part, in minimum increments of 300,000
shares of Common Stock. The number of shares of Common Stock subject to the
Warrant is 2,847,797 (the "Warrant Shares") and the exercise price is $0.0001
per share (the "Exercise Price"). The number of Warrant Shares and the Exercise
Price are subject to adjustment for stock splits, subdivisions and similar
events. In order to prevent dilution of Mezzanine Fund's ownership percentage of
Issuer's Common Stock through new issuances of Issuer's capital stock, the
holder of the Warrant may purchase its pro rata portion of such a new issuance
upon the same terms and prices of the proposed issuance. This preemptive right
is inapplicable to board-approved issuances to employees, officers or directors,
issuances in consideration of acquisitions and issuances to a lender in
connection with a loan. As long as Mezzanine Fund and its direct transferees own
50% or more of the Warrant or the Warrant Shares, Mezzanine Fund is granted the
right to observe meetings of Issuer's Board of Directors and Issuer undertakes
to use its best efforts to recommend a representative of Mezzanine Fund as a
director at the next annual or special shareholders meeting. The Warrant confers
no voting power upon Mezzanine Fund prior to its exercise.
Page 13 of 23
<PAGE> 14
Registration Rights. Mezzanine Fund, as holder of the Warrant Shares,
has certain registration rights with respect to the registration of the Warrant
Shares pursuant to the Registration Rights Agreement. Subsequent to July 21,
2001, Mezzanine Fund is entitled, at its option, to request registration under
the Securities Act of all the Warrant Shares or, if only a portion of the
Warrant Shares, in minimum increments of 300,000 shares of Common Stock (a
"Demand Registration"). Mezzanine Fund has three Demand Registrations without
regard to the form upon which Issuer files a Registration Statement and no more
than two Demand Registrations in any twelve month period with respect to
Registration Statements filed by Issuer on Form S-3. In addition, Issuer grants
Mezzanine Fund piggyback registration rights with respect to offerings by Issuer
for its own account or for the account of any of its securityholders of shares
of Common Stock.
Exhibits. The Warrant and the Registration Rights Agreement are
attached hereto as Exhibits 4 and 5 respectively and are incorporated herein by
this reference. The above brief summaries of some of the provisions of these
documents are subject to qualification in their entirety by reference to the
full text of such documents attached hereto.
Except as set forth herein or in the Exhibits filed herewith, there are
no contracts, arrangements, understandings or relationships of the type required
to be disclosed in response to Item 6 of Schedule 13D of the Act with respect to
the shares owned by the Reporting Persons.
Item 7. Materials to be Filed as Exhibits.
Exhibit 1 Agreement pursuant to Rule 13d-1(k)(1)(iii) of Regulation
13D-G.
Exhibit 2 Senior Subordinated Loan Agreement dated as of July 21, 2000,
by and among Clarion Technologies, Inc., a Delaware
corporation, its subsidiaries party thereto, and William Blair
Mezzanine Capital Fund III, L.P., a Delaware limited
partnership.
Exhibit 3 Senior Subordinated Note dated as of July 21, 2000 from Clarion
Technologies, Inc., a Delaware corporation and its subsidiaries
party thereto, to William Blair Mezzanine Capital Fund III,
L.P., a Delaware limited partnership.
Exhibit 4 Warrant dated as of July 21, 2000 from Clarion Technologies,
Inc., a Delaware corporation to William Blair Mezzanine Capital
Fund III, L.P., a Delaware limited partnership.
Exhibit 5 Registration Rights Agreement dated as of July 21, 2000 between
Clarion Technologies, Inc., a Delaware corporation and William
Blair Mezzanine Capital Fund III, L.P., a Delaware limited
partnership.
Page 14 of 23
<PAGE> 15
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: July 27, 2000 WILLIAM BLAIR MEZZANINE CAPITAL FUND III, L.P., a
Delaware Limited Partnership
By: William Blair Mezzanine Capital Partners
III, L.L.C., its General Partner
By: /s/ Terrance M. Shipp
-------------------------------------
Name: Terrance M. Shipp
Title: Initial Managing Director
WILLIAM BLAIR MEZZANINE CAPITAL PARTNERS III,
L.L.C.
By: /s/ Terrance M. Shipp
-----------------------------
Name: Terrance M. Shipp
Title: Initial Managing Director
WILBLAIRCO ASSOCIATES
By: /s/ John P. Kayser
-----------------------------
Name: John P. Kayser
Title: Partner
WILLIAM BLAIR & COMPANY, L.L.C.
By: /s/ Timothy L. Burke
-----------------------------
Name: Timothy L. Burke
Title: Principal
Page 15 of 23
<PAGE> 16
TIMOTHY J. MACKENZIE
/s/ Timothy J. MacKenzie
------------------------------------
Timothy J. MacKenzie
TERRANCE M. SHIPP
/s/ Terrance M. Shipp
------------------------------------
Terrance M. Shipp
MARC J. WALFISH
/s/ Marc J. Walfish
------------------------------------
Marc J. Walfish
Page 16 of 23
<PAGE> 17
SCHEDULE I
WILLIAM BLAIR & COMPANY, L.L.C.
PRINCIPALS AS OF JULY 26, 2000
A. The following principals all have a business address of:
William Blair & Company, L.L.C.
222 West Adams Street
Chicago, Illinois 60606
Name Citizenship
JAMES J. ARADO USA
STEVEN J. ASHBY USA
NOLAN H. BAIRD, JR. USA
MICHAEL P. BALKIN USA
SHEZAD K. BANDUKWALA USA
JAMES L. BARBER USA
JOHN A. BARONE USA
MICHAEL W. BARONE USA
ROBERT R. BARTELS USA
ROSS BAUMGARTEN USA
BOWEN BLAIR USA
EDWARD McC. BLAIR USA
EDWARD McC. BLAIR, JR. USA
ROBERT D. BLANK USA
MARK G. BRADY USA
JOHN J. BRANSFIELD, JR. USA
TERRELL G. BRESSLER USA
ROBERT C. BRIDGES USA
KATHLEEN WIELAND BROWN USA
KENTON BROWN USA
HARVEY H. BUNDY, III USA
W. NEWTON BURDICK, III USA
TIMOTHY L. BURKE USA
JOSEPH J. BURRELLO USA
GEORGE K. BUSSE USA
STEPHEN CAMPBELL USA
RUSSELL R. CAMPION USA
THOMAS F. CAMPION USA
ELLEN CARNAHAN USA
ROBERT W. CARTWRIGHT USA
CANDIDA M. CASEY USA
DAVID G. CHANDLER USA
MARC W. CHRISTMAN USA
E. DAVID COOLIDGE, III USA
CHRISTOPHER A. COTTER USA
THOMAS J. CROGHAN USA
MICHAEL T. DAVIS USA
EDWARD J. DELIN USA
PETER A. DOERR USA
Page 17 of 23
<PAGE> 18
KELLEY R. DRAKE USA
JOHN M. DRAPER USA
STEPHEN E. ELKINS USA
JOHN R. ETTELSON USA
CHRISTINE N. EVANS KELLY USA
DAVID T. FARINA USA
FRANCIS C. FARWELL USA
BRENT FELITTO USA
F. CONRAD FISCHER USA
FREDERICK FISCHER USA
GARY J. FISHER USA
ROBERT C. FIX USA
RICHARD M. FRADIN USA
PAUL W. FRANKE USA
CHARLES W. FREEBURG USA
TINA M. FREY USA
MARK A. FULLER, III USA
ABHISHEK S. GAMI USA
JOHN R. GARDNER USA
MICHAEL D. GENTILE USA
JOEL K. GOMBERG USA
RICHARD D. GOTTFRED USA
JOHN K. GREENE USA
THOMAS L. GREENE USA
W. GEORGE GREIG USA
J. TERRY HEATH USA
DWIGHT E. HELM USA
ELIZABETH M. HENNESSY USA
JAMES P. HICKEY USA
CHARLES H. HODGES, IV USA
JOHN P. HUBER USA
MORTIMER G. HUBER USA
WILLIAM IANNESSA USA
STEPHEN D. JACOBSON USA
EDGAR D. JANNOTTA USA
JOHN JOSTRAND USA
RICHARD S. KAPLAN USA
THEODORE C. KAUSS, JR. USA
JOHN P. KAYSER USA
KATHLEEN KIDDER USA
RICHARD M. KING USA
RICHARD P. KIPHART USA
JAMES S. KOWSKI USA
CHARLES J. KRAFT, III USA
ANTHONY J. KRISS USA
ALBERT J. LACHER Switzerland
JOSEPH F. LaMANNA USA
LOUISE LANE USA
ROBERT C. LANPHIER, IV USA
IAN LARKIN USA
CONSTANCE S. LASH USA
ALAN A. LAZZARA USA
Page 18 of 23
<PAGE> 19
LAURA J. LEDERMAN USA
DANIEL B. LIDAWER USA
DAVID K. MABIE USA
JAMES W. MABIE USA
TIMOTHY J. MacKENZIE USA
EARL L. MANNS USA
KELLY J. MARTIN USA
LOUI L. MARVER USA
CHARLES M. McDONALD USA
JAMES D. McKINNEY USA
CARLETTE C. McMULLAN USA
JAMES M. McMULLAN USA
JEFFREY S. MEDFORD USA
ARDA M. MINOCHERHOMJEE USA
COREY A. MINTURN USA
JUDITH B. MORLEY USA
RICHARD F. MORRIS USA
DAVID W. MORRISON USA
TERRENCE G. MULDOON USA
TIMOTHY M. MURRAY USA
BENTLEY M. MYER USA
ROBERT D. NEWMAN USA
GREGG S. NEWMARK USA
JOHN P. NICHOLAS USA
DANIEL J. NICHOLS USA
DAVID F. NYREN USA
DAVID G. O'NEILL USA
JOHN F. O'TOOLE USA
R. SCOTT PATTERSON USA
WILLIAM T. PATTERSON USA
WILLIAM G. PERLITZ USA
DAVID C. PHILLIPS USA
MICHAEL A. PITT USA
THOMAS S. POSTEK USA
GREGORY J. PUSINELLI USA
PETER RAPHAEL USA
PHILLIP W. REITZ USA
DAVID RICCI USA
WILLIAM J. RODDY USA
ERIC B. ROWLEY USA
STEVEN M. RYAN USA
ALFRED J. SALVINO USA
THOMAS J. SALVINO USA
MICHELLE SEITZ USA
NEAL L. SELTZER USA
BARBARA J. SEMENS USA
WILLIAM B. SEMMER USA
RICHARD K. SHEINER USA
TERRANCE M. SHIPP USA
ARTHUR J. SIMON USA
CHRISTOPHER R. SPAHR USA
RITA J. SPITZ USA
Page 19 of 23
<PAGE> 20
JOHN B. STEBBINS USA
THOMAS H. STORY USA
RAYMOND J. TEBOREK USA
MARK A. TIMMERMAN USA
NORBERT W. TRUDERUNG USA
W. JAMES TRUETTNER, JR. USA
LAURA VAN PEENAN USA
MARC J. WALFISH USA
BENNET WANG USA
JAMES E. WASHBURN USA
DANIEL A. WEISS USA
DANIEL J. WILSON USA
ROBERT V. WITTIG USA
B. The following principal has a business address of:
William Blair & Company, L.L.C.
Two Embarcedero Center, Suite 2320
San Francisco, California 94111
Name Citizenship
RONALD D. EMERICK USA
MARK McNAY USA
C. The following principals have a business address of:
William Blair & Company, L.L.C.
Mitteldorf I
9400 Vaduz
Principality of Liechtenstein
Name Citizenship
KURT L. BUECHEL Principality of Liechtenstein
D. The following principals have a business address of:
William Blair & Company, L.L.C.
3 St. Helen's Place
London EC3A 6AU, England
Name Citizenship
JOHN A. FORDHAM United Kingdom
Page 20 of 23
<PAGE> 21
E. The following principals have a business address of
William Blair & Company, L.L.C.
Stockerstrasse 46
8039 Zurich, Switzerland
Name Citizenship
CHRISTOPH B. FUCHS Switzerland
F. The principal business of William Blair & Company, L.L.C., is as an
investment banker, securities broker/dealer and investment manager.
All of the principals listed above, except as noted below, have as
their principal occupations one or more of these activities or the
administrative support for these activities.
MacKenzie, Shipp and Walfish are also Initial Managing Directors of
William Blair Mezzanine Capital Partners III, L.L.C.
Page 21 of 23
<PAGE> 22
SCHEDULE II
WILBLAIRCO ASSOCIATES
PRINCIPALS AS OF JULY 26, 2000
A. The following principals all have a business address of:
Wilblairco Associates
222 West Adams Street
Chicago, Illinois 60606
Name Citizenship
JAMES J. ARADO USA
STEVEN J. ASHBY USA
NOLAN H. BAIRD, JR. USA
MICHAEL P. BALKIN USA
SHEZAD K. BANDUKWALA USA
JAMES L. BARBER USA
JOHN A. BARONE USA
ROBERT R. BARTELS USA
TERRELL G. BRESSLER USA
HARVEY H. BUNDY, III USA
TIMOTHY L. BURKE USA
JOSEPH J. BURRELLO USA
STEPHEN CAMPBELL USA
DAVID G. CHANDLER USA
E. DAVID COOLIDGE, III USA
CHRISTOPHER A. COTTER USA
MICHAEL T. DAVIS USA
JOHN R. ETTELSON USA
FRANCIS C. FARWELL USA
BRENT FELITTO USA
F. CONRAD FISCHER USA
GARY J. FISHER USA
ROBERT C. FIX USA
CHARLES W. FREEBURG USA
MARK A. FULLER, III USA
RICHARD D. GOTTFRED USA
DWIGHT E. HELM USA
JAMES P. HICKEY USA
STEPHEN D. JACOBSON USA
EDGAR D. JANNOTTA USA
THEODORE C. KAUSS, JR. USA
JOHN P. KAYSER USA
KATHLEEN KIDDER USA
RICHARD M. KING USA
RICHARD P. KIPHART USA
CHARLES J. KRAFT, III USA
ANTHONY J. KRISS USA
ALBERT J. LACHER Switzerland
JOSEPH F. LaMANNA USA
Page 22 of 23
<PAGE> 23
ROBERT C. LANPHIER, IV USA
IAN LARKIN USA
CONSTANCE S. LASH USA
DAVID K. MABIE USA
JAMES W. MABIE USA
TIMOTHY J. MacKENZIE USA
KELLY J. MARTIN USA
CHARLES M. McDONALD USA
JAMES D. McKINNEY USA
CARLETTE C. McMULLAN USA
JAMES M. McMULLAN USA
ARDA M. MINOCHERHOMJEE USA
COREY A. MINTURN USA
RICHARD F. MORRIS USA
DAVID W. MORRISON USA
TIMOTHY M. MURRAY USA
GREGG S. NEWMARK USA
JOHN P. NICHOLAS USA
R. SCOTT PATTERSON USA
THOMAS S. POSTEK USA
GREGORY J. PUSINELLI USA
WILLIAM J. RODDY USA
ERIC B. ROWLEY USA
STEVEN M. RYAN USA
ALFRED J. SALVINO USA
MICHELLE SEITZ USA
NEAL L. SELTZER USA
BARBARA J. SEMENS USA
WILLIAM B. SEMMER USA
RICHARD K. SHEINER USA
TERRANCE M. SHIPP USA
RITA J. SPITZ USA
RAYMOND J. TEBOREK USA
MARK A. TIMMERMAN USA
MARC J. WALFISH USA
JAMES E. WASHBURN USA
DANIEL A. WEISS USA
ROBERT V. WITTIG USA
The principals listed above have the same occupations as specified in
Schedule I hereof, incorporated herein by this reference solely for
that purpose. MacKenzie, Shipp and Walfish are also Initial Managing
Directors of William Blair Mezzanine Capital Partners III, L.L.C.
Page 23 of 23
