- -------------------------------------
OMB Approval
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OMB Number: 3235-0145
Expires: August 31, 1999
Estimated average burden
hours per response.........14.90
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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 3)*
NATIONAL AUTO FINANCE COMPANY, INC.
(Name of Issuer)
SHARES OF COMMON STOCK, PAR VALUE $0.01 PER SHARE
(Title of Class of Securities)
632528-10-5
(CUSIP Number)
RICHARD GOREVITZ JOSEPH P. DONLAN DAVID M. SCHNEIDER
THE PRUDENTIAL INSURANCE BROWN BROTHERS HARRIMAN & CO THE PROGRESSIVE
CORPORATION
COMPANY OF AMERICA 59 WALL STREET 6300 WILSON MILLS ROAD
ONE GATEWAY CENTER NEW YORK, NY 10005 MAYFIELD VILLAGE, OH 44143
11TH FLOOR (212) 493-7882 (216) 461-5000
NEWARK, NJ 07102-5311
(973) 802-7003
with a copy to:
DAVID C.L. FRAUMAN
CADWALADER, WICKERSHAM & TAFT
100 MAIDEN LANE
NEW YORK, NEW YORK 10038
(212) 504-6652
(Name, Address and Telephone Number of Person Authorized to
Receive Notices and Communications)
OCTOBER 1, 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 that 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 |_|.
Note:Schedules filed in paper format shall include a signed original and five
copies of the schedule, including all exhibits. See ss. 240.13d-7 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 ("Exchange 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).
POTENTIAL PERSONS WHO ARE TO RESPOND TO THE COLLECTION OF
INFORMATION CONTAINED IN THIS FORM ARE NOT REQUIRED TO RESPOND UNLESS
THE FORM DISPLAYS A CURRENTLY VALID OMB CONTROL NUMBER.
<PAGE>
SCHEDULE 13D
CUSIP No.632528-10-5 Page 2 of 20 Pages
- ------------------- -----------------
- --------------------------------------------------------------------------------
1 NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
The Progressive Corporation, 34-0963169
- --------------------------------------------------------------------------------
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)
00
- --------------------------------------------------------------------------------
5 CHECK IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS
2(d) or 2(e)|_|
- --------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
Ohio
- --------------------------------------------------------------------------------
7 SOLE VOTING POWER
0
NUMBER OF
SHARES --------------------------------------------------------
BENEFICIALLY 8 SHARED VOTING POWER
OWNED BY 8,656,997
EACH
REPORTING --------------------------------------------------------
PERSON 9 SOLE DISPOSITIVE POWER
WITH 0
--------------------------------------------------------
10 SHARED DISPOSITIVE POWER
4,426,997
- --------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
4,426,997
- --------------------------------------------------------------------------------
12 CHECK IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES
(See Instructions)|X|
- --------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
24.43%
- --------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON (See Instructions)
HC, CO
- --------------------------------------------------------------------------------
<PAGE>
SCHEDULE 13D
CUSIP No.632528-10-5 Page 3 of 20 Pages
- ------------------- -----------------
- --------------------------------------------------------------------------------
1 NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
Progressive Casualty Insurance Company, 34-6513736
- --------------------------------------------------------------------------------
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)
00
- --------------------------------------------------------------------------------
5 CHECK IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS
2(d) or 2(e)|_|
- --------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
Ohio
- --------------------------------------------------------------------------------
7 SOLE VOTING POWER
0
NUMBER OF
SHARES --------------------------------------------------------
BENEFICIALLY 8 SHARED VOTING POWER
OWNED BY 8,656,997
EACH
REPORTING --------------------------------------------------------
PERSON 9 SOLE DISPOSITIVE POWER
WITH 0
--------------------------------------------------------
10 SHARED DISPOSITIVE POWER
4,426,997
- --------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
4,426,997
- --------------------------------------------------------------------------------
12 CHECK IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES
(See Instructions)|X|
- --------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
24.43%
- --------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON (See Instructions) IC, CO, Subsidiary of The
Progressive Corporation
- --------------------------------------------------------------------------------
<PAGE>
SCHEDULE 13D
CUSIP No.632528-10-5 Page 4 of 20 Pages
- -------------------- ------------------
- --------------------------------------------------------------------------------
1 NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
PC Investment Company, 34-1576555
- --------------------------------------------------------------------------------
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)
00
- --------------------------------------------------------------------------------
5 CHECK IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS
2(d) or 2(e)|_|
- --------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
Delaware
- --------------------------------------------------------------------------------
7 SOLE VOTING POWER
0
NUMBER OF
SHARES --------------------------------------------------------
BENEFICIALLY 8 SHARED VOTING POWER
OWNED BY 8,656,997
EACH
REPORTING --------------------------------------------------------
PERSON 9 SOLE DISPOSITIVE POWER
WITH 0
--------------------------------------------------------
10 SHARED DISPOSITIVE POWER
4,426,997
- --------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
4,426,997
- --------------------------------------------------------------------------------
12 CHECK IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES
(See Instructions)|X|
- --------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
24.43%
- --------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON (See Instructions) CO, Subsidiary of
Progressive Casualty Insurance Company
- --------------------------------------------------------------------------------
<PAGE>
SCHEDULE 13D
CUSIP No.632528-10-5 Page 5 of 20 Pages
- -------------------- ------------------
- --------------------------------------------------------------------------------
1 NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
Progressive Investment Company, Inc., 34-1378861
- --------------------------------------------------------------------------------
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)
00
- --------------------------------------------------------------------------------
5 CHECK IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS
2(d) or 2(e)|_|
- --------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
Delaware
- --------------------------------------------------------------------------------
7 SOLE VOTING POWER
0
NUMBER OF
SHARES --------------------------------------------------------
BENEFICIALLY 8 SHARED VOTING POWER
OWNED BY 8,656,997
EACH
REPORTING --------------------------------------------------------
PERSON 9 SOLE DISPOSITIVE POWER
WITH 0
--------------------------------------------------------
10 SHARED DISPOSITIVE POWER
4,426,997
- --------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
4,426,997
- --------------------------------------------------------------------------------
12 CHECK IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES
(See Instructions)|X|
- --------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
24.43%
- --------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON (See Instructions) CO, Subsidiary of The
Progressive Corporation
- --------------------------------------------------------------------------------
<PAGE>
SCHEDULE 13D
CUSIP No.632528-10-5 Page 6 of 20 Pages
- -------------------- ------------------
- --------------------------------------------------------------------------------
1 NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
The 1818 Mezzanine Fund, L.P.
- --------------------------------------------------------------------------------
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)
00
- --------------------------------------------------------------------------------
5 CHECK IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS
2(d) or 2(e)|_|
- --------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
Delaware
- --------------------------------------------------------------------------------
7 SOLE VOTING POWER
0
NUMBER OF
SHARES --------------------------------------------------------
BENEFICIALLY 8 SHARED VOTING POWER
OWNED BY 8,385,612
EACH
REPORTING --------------------------------------------------------
PERSON 9 SOLE DISPOSITIVE POWER
WITH 0
--------------------------------------------------------
10 SHARED DISPOSITIVE POWER
4,155,612
- --------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
4,155,612
- --------------------------------------------------------------------------------
12 CHECK IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES
(See Instructions)|X|
- --------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
22.68%
- --------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON (See Instructions)
PN
- --------------------------------------------------------------------------------
<PAGE>
SCHEDULE 13D
CUSIP No.632528-10-5 Page 7 of 20 Pages
- -------------------- ------------------
- --------------------------------------------------------------------------------
1 NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
Brown Brothers Harriman & Co.
- --------------------------------------------------------------------------------
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)
00
- --------------------------------------------------------------------------------
5 CHECK IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS
2(d) or 2(e)|_|
- --------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
New York
- --------------------------------------------------------------------------------
7 SOLE VOTING POWER
0
NUMBER OF
SHARES --------------------------------------------------------
BENEFICIALLY 8 SHARED VOTING POWER
OWNED BY 8,385,612
EACH
REPORTING --------------------------------------------------------
PERSON 9 SOLE DISPOSITIVE POWER
WITH 0
--------------------------------------------------------
10 SHARED DISPOSITIVE POWER
4,155,612
- --------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
4,155,612
- --------------------------------------------------------------------------------
12 CHECK IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES
(See Instructions)|X|
- --------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
22.68%
- --------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON (See Instructions)
PN
- --------------------------------------------------------------------------------
<PAGE>
SCHEDULE 13D
CUSIP No.632528-10-5 Page 8 of 20 Pages
- -------------------- ------------------
- --------------------------------------------------------------------------------
1 NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
Joseph P. Donlan
- --------------------------------------------------------------------------------
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)
00
- --------------------------------------------------------------------------------
5 CHECK IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS
2(d) or 2(e)|_|
- --------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
United States of America
- --------------------------------------------------------------------------------
7 SOLE VOTING POWER
0
NUMBER OF
SHARES --------------------------------------------------------
BENEFICIALLY 8 SHARED VOTING POWER
OWNED BY 8,395,612
EACH
REPORTING --------------------------------------------------------
PERSON 9 SOLE DISPOSITIVE POWER
WITH 0
--------------------------------------------------------
10 SHARED DISPOSITIVE POWER
4,165,612
- --------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
4,165,612
- --------------------------------------------------------------------------------
12 CHECK IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES
(See Instructions)|X|
- --------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
22.68%
- --------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON (See Instructions)
IN
- --------------------------------------------------------------------------------
<PAGE>
SCHEDULE 13D
CUSIP No.632528-10-5 Page 9 of 20 Pages
- -------------------- ------------------
- --------------------------------------------------------------------------------
1 NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
Robert R. Gould
- --------------------------------------------------------------------------------
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)
00
- --------------------------------------------------------------------------------
5 CHECK IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS
2(d) or 2(e)|_|
- --------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
United States of America
- --------------------------------------------------------------------------------
7 SOLE VOTING POWER
0
NUMBER OF
SHARES --------------------------------------------------------
BENEFICIALLY 8 SHARED VOTING POWER
OWNED BY 8,385,612
EACH
REPORTING --------------------------------------------------------
PERSON 9 SOLE DISPOSITIVE POWER
WITH 0
--------------------------------------------------------
10 SHARED DISPOSITIVE POWER
4,155,612
- --------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
4,155,612
- --------------------------------------------------------------------------------
12 CHECK IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES
(See Instructions)|X|
- --------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
22.68%
- --------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON (See Instructions)
IN
- --------------------------------------------------------------------------------
<PAGE>
SCHEDULE 13D
CUSIP No.632528-10-5 Page 10 of 20 Pages
- -------------------- -------------------
- --------------------------------------------------------------------------------
1 NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
T. Michael Long
- --------------------------------------------------------------------------------
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)
00
- --------------------------------------------------------------------------------
5 CHECK IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS
2(d) or 2(e)|_|
- --------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
United States of America
- --------------------------------------------------------------------------------
7 SOLE VOTING POWER
0
NUMBER OF
SHARES --------------------------------------------------------
BENEFICIALLY 8 SHARED VOTING POWER
OWNED BY 8,385,612
EACH
REPORTING --------------------------------------------------------
PERSON 9 SOLE DISPOSITIVE POWER
WITH 0
--------------------------------------------------------
10 SHARED DISPOSITIVE POWER
4,155,612
- --------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
4,155,612
- --------------------------------------------------------------------------------
12 CHECK IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES
(See Instructions)|X|
- --------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
22.68%
- --------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON (See Instructions)
IN
- --------------------------------------------------------------------------------
<PAGE>
SCHEDULE 13D
CUSIP No.632528-10-5 Page 11 of 20 Pages
- -------------------- -------------------
- --------------------------------------------------------------------------------
1 NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
Lawrence C. Tucker
- --------------------------------------------------------------------------------
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)
00
- --------------------------------------------------------------------------------
5 CHECK IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS
2(d) or 2(e)|_|
- --------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
United States of America
- --------------------------------------------------------------------------------
7 SOLE VOTING POWER
0
NUMBER OF
SHARES --------------------------------------------------------
BENEFICIALLY 8 SHARED VOTING POWER
OWNED BY 8,385,612
EACH
REPORTING --------------------------------------------------------
PERSON 9 SOLE DISPOSITIVE POWER
WITH 0
--------------------------------------------------------
10 SHARED DISPOSITIVE POWER
4,155,612
- --------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
4,155,612
- --------------------------------------------------------------------------------
12 CHECK IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES
(See Instructions)|X|
- --------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
22.68%
- --------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON (See Instructions)
IN
- --------------------------------------------------------------------------------
<PAGE>
SCHEDULE 13D
CUSIP No.632528-10-5 Page 12 of 20 Pages
- -------------------- -------------------
- --------------------------------------------------------------------------------
1 NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
The Structured Finance High Yield Fund, LLC
- --------------------------------------------------------------------------------
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)
00
- --------------------------------------------------------------------------------
5 CHECK IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS
2(d) or 2(e)|_|
- --------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
Delaware
- --------------------------------------------------------------------------------
7 SOLE VOTING POWER
0
NUMBER OF
SHARES --------------------------------------------------------
BENEFICIALLY 8 SHARED VOTING POWER
OWNED BY 7,957,061
EACH
REPORTING --------------------------------------------------------
PERSON 9 SOLE DISPOSITIVE POWER
WITH 0
--------------------------------------------------------
10 SHARED DISPOSITIVE POWER
3,727,061
- --------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
3,727,061
- --------------------------------------------------------------------------------
12 CHECK IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES
(See Instructions)|X|
- --------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
19.98%
- --------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON (See Instructions)
00
- --------------------------------------------------------------------------------
<PAGE>
SCHEDULE 13D
CUSIP No.632528-10-5 Page 13 of 20 Pages
- -------------------- -------------------
- --------------------------------------------------------------------------------
1 NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
The Prudential Insurance Company of America, 22-121160
- --------------------------------------------------------------------------------
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)
00
- --------------------------------------------------------------------------------
5 CHECK IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS
2(d) or 2(e)|_|
- --------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
New Jersey
- --------------------------------------------------------------------------------
7 SOLE VOTING POWER
0
NUMBER OF
SHARES --------------------------------------------------------
BENEFICIALLY 8 SHARED VOTING POWER
OWNED BY 7,957,061
EACH
REPORTING --------------------------------------------------------
PERSON 9 SOLE DISPOSITIVE POWER
WITH 0
--------------------------------------------------------
10 SHARED DISPOSITIVE POWER
3,727,061
- --------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
3,727,061
- --------------------------------------------------------------------------------
12 CHECK IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES
(See Instructions)|X|
- --------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
19.98%
- --------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON (See Instructions)
IC, IA
- --------------------------------------------------------------------------------
<PAGE>
CUSIP No.632528-10-5 Page 14 of 20 Pages
- -------------------- -------------------
ITEM 1. SECURITY AND ISSUER.
This Amendment No. 3 to the Schedule 13D filed on behalf of the Progressive
Entities (as defined below) on December 31, 1997, the Schedule 13D filed on
behalf of the BBH Entities (as defined below) on December 30, 1997, and the
Schedule 13G filed on behalf of the Prudential Entities (as defined below and,
together with the Progressive Entities and the BBH Entities, the "Reporting
Persons") on April 26, 1999, as amended by Amendment No. 1 to the Schedule 13D
filed on May 6, 1999 and Amendment No. 2 to the Schedule 13D filed on July 12,
1999 ("Amendment No. 2"), is being filed in connection with changes in the
Reporting Persons' beneficial ownership of the shares of Common Stock, par value
$0.01 per share (the "Common Stock"), of National Auto Finance Company, Inc., a
Delaware corporation (the "Issuer").
ITEM 5. INTEREST IN SECURITIES OF THE ISSUER.
(a) On October 1, 1999, the Issuer issued to the Reporting Persons as the
holders of the Issuer's Convertible Senior Subordinated Promissory Notes due
December 22, 2004 (the "Convertible Notes"), a copy of a form of which was
previously filed as Exhibit 7.8 to Amendment No. 2 and is incorporated herein by
reference, additional Convertible Notes in the total aggregate principal amount
of $762,752.80 in lieu of the interest accrued on the Convertible Notes. The
Convertible Notes are convertible, at the option of the holder thereof, at a
price of $0.75 per share, into shares of Common Stock. Additional Convertible
Notes shall be identical in form and substance, and shall entitle the holder
thereof, to the benefits of such Convertible Notes.
In connection with the issuance as described above of additional
Convertible Notes having an aggregate principal amount of $213,571.15, PC
Investment Company, a Delaware corporation ("PCI"), shall be deemed to have
acquired beneficial ownership of an additional 284,762 shares of Common Stock.
Accordingly, each of The Progressive Corporation, an Ohio corporation
("Progressive"), Progressive Casualty Insurance Company, an Ohio corporation
("Progressive Casualty"), PCI and Progressive Investment Company, Inc., a
Delaware corporation ("Progressive Investment" and, together with Progressive,
Progressive Casualty and PCI, the "Progressive Entities"), may be deemed to
beneficially own 8,656,997 shares of Common Stock (the "Progressive Shares"), or
47.6% of the Issuer's Common Stock, which percentage is calculated based upon
(i) 17,280,762 shares of Common Stock represented by the Issuer to be issued and
outstanding on August 16, 1999, (ii) 363,623 shares of Common Stock issuable
upon exercise of the Warrants held by Progressive Investment, (iii) 543,374
shares of Common Stock issuable upon conversion of the Convertible Notes held by
PCI, and (iv) shared voting power with respect to 4,230,000 shares of Common
Stock owned by National Auto Finance Company, L.P., a Delaware limited
partnership, with respect to which the Progressive Entities, the BBH Entities
and the Prudential Entities have an irrevocable proxy to vote (the "Partnership
Shares"). The Progressive Entities disclaim beneficial ownership of the
Partnership Shares, the BBH Shares (as defined below) and the Prudential Shares
(as defined below).
<PAGE>
CUSIP No.632528-10-5 Page 15 of 20 Pages
- -------------------- -------------------
In connection with the issuance as described above of additional
Convertible Notes having an aggregate principal amount of $244,080.22, The 1818
Mezzanine Fund, L.P., a Delaware limited partnership (the "Fund"), shall be
deemed to have acquired beneficial ownership of an additional 325,440 shares of
Common Stock. Accordingly, each of the Fund, Brown Brothers Harriman & Co., a
New York limited partnership ("BBH&Co."), Robert R. Gould, a United States
citizen ("Gould"), T. Michael Long, a United States citizen ("Long"), and
Lawrence C. Tucker, a United States citizen ("Tucker"), may be deemed to
beneficially own 8,385,612 shares of Common Stock (the "BBH Shares"), or 45.8%
of the Issuer's Common Stock, which percentage is calculated based upon (i)
17,280,762 shares of Common Stock represented by the Issuer to be issued and
outstanding on August 16, 1999, (ii) 415,570 shares of Common Stock issuable
upon exercise of the Warrants held by the Fund, (iii) 620,995 shares of Common
Stock issuable upon conversion of the Convertible Notes held by the Fund, and
(iv) shared voting power with respect to the Partnership Shares. In addition,
Joseph P. Donlan, a United States citizen ("Donlan" and, together with the Fund,
BBH&Co., Gould, Long and Tucker, the "BBH Entities"), may be deemed to
beneficially own 8,395,612 shares of Common Stock, or 45.8% of Common Stock,
which percentage is calculated based upon (i) 17,280,762 shares of Common Stock
represented by the Issuer to be issued and outstanding on August 16, 1999, (ii)
415,570 shares of Common Stock issuable upon exercise of the Warrants held by
the Fund, (iii) 620,995 shares of Common Stock issuable upon conversion of the
Convertible Notes held by the Fund, (iv) 10,000 of Common Stock that Donlan may
purchase pursuant to stock options granted to him under the 1996 Share Incentive
Plan of the Issuer, and (v) shared voting power with respect to the Partnership
Shares. The BBH Entities disclaim beneficial ownership of the Partnership
Shares, the Progressive Shares and the Prudential Shares (as defined below).
Donlan, Gould, Long and Tucker disclaim beneficial ownership of the BBH Shares.
In connection with the issuance as described above of additional
Convertible Notes having an aggregate principal amount of $305,101.43, The
Structured Finance High Yield Fund, LLC, a Delaware limited liability company
("SFHY"), shall be deemed to have acquired beneficial ownership of an additional
406,802 shares of Common Stock. Accordingly, each of SFHY and The Prudential
Insurance Company of America, a mutual insurance company organized under the
laws of New Jersey ("Prudential" and, together with SFHY, the "Prudential
Entities"), may be deemed to beneficially own 7,957,061 shares of Common Stock
(the "Prudential Shares"), or 42.7% of the Issuer's Common Stock, which
percentage is calculated based upon (i) 17,280,762 shares of Common Stock
represented by the Issuer to be issued and outstanding on August 16, 1999, (ii)
593,671 shares of Common Stock issuable upon exercise of the Warrants held by
SFHY, (iii) 776,247 shares of Common Stock issuable upon conversion of the
Convertible Notes held by SFHY, and (iv) shared voting power with respect to the
Partnership Shares. The Prudential Entities disclaim beneficial ownership of the
Partnership Shares, the Progressive Shares and the BBH Shares.
(b) Number of Shares as to which each of the Progressive Entities has:
(i) Sole power to vote or direct the vote: 0 shares for each
Progressive Entity;
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CUSIP No.632528-10-5 Page 16 of 20 Pages
- -------------------- -------------------
(ii) Shared power to vote or direct the vote: 8,656,997 shares
for each Progressive Entity;
(iii) Sole power to dispose or to direct the disposition: 0
shares for each Progressive Entity;
(iv) Shared power to dispose or to direct the disposition:
4,426,997 shares for each Progressive Entity.
Number of Shares as to which each of the of the BBH Entities, except for
Donlan who has an additional 10,000 shares, has:
(i) Sole power to vote or direct the vote: 0 shares for each BBH
Entity;
(ii) Shared power to vote or direct the vote: 8,385,612 shares
for each BBH Entity;
(iii) Sole power to dispose or to direct the disposition: 0
shares for each BBH Entity;
(iv) Shared power to dispose or to direct the disposition:
4,155,612 shares for each BBH Entity.
Number of Shares as to which each of the Prudential Entities has:
(i) Sole power to vote or direct the vote: 0 shares for each
Prudential Entity;
(ii) Shared power to vote or direct the vote: 7,957,061 shares
for each Prudential Entity;
(iii)Sole power to dispose or to direct the disposition: 0
shares for each Prudential Entity;
(iv) Shared power to dispose or to direct the disposition:
3,727,061 shares for each Prudential Entity.
ITEM 7. MATERIAL TO BE FILED AS EXHIBITS.
Exhibit 7.8. Form of the Convertible Note contemplated by the Restructuring
Agreement, dated as of April 12, 1999, by and among National Auto
Finance Company, Inc., National Auto Finance Company,
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L.P., National Auto Finance Corporation, Gary L. Shapiro, Edgar
A. Otto, Stephen L. Gurba, The 1818 Mezzanine Fund, L.P., PC
Investment Company, Progressive Investment Company, Inc.,
Manufacturers Life Insurance Company (U.S.A.) (previously filed
as Exhibit 7.8 to Amendment No. 2 filed on July 12, 1999).
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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.
THE PROGRESSIVE CORPORATION
PROGRESSIVE CASUALTY INSURANCE COMPANY
By: /s/ W. Thomas Forrester
---------------------------
Name: W. Thomas Forrester
Title: Treasurer
PC INVESTMENT COMPANY
PROGRESSIVE INVESTMENT COMPANY, INC.
By: /s/ Janet A. Dolahanty
--------------------------
Name: Janet A. Dolahanty
Title: Treasurer
Date: October 11, 1999
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CUSIP No.632528-10-5 Page 19 of 20 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.
BROWN BROTHERS HARRIMAN & CO.
By:/s/ Robert R. Gould
--------------------
Name: Robert R. Gould
Title: Partner
THE 1818 MEZZANINE FUND, L.P.
By: Brown Brothers Harriman & Co.,
General Partner
By: /s/ Robert R. Gould
---------------------
Name: Robert R. Gould
Title: Partner
/s/ Joseph P. Donlan
--------------------
Joseph P. Donlan
/s/ Robert R. Gould
---------------------
Robert R. Gould
/s/ T. Michael Long
-------------------
T. Michael Long
/s/ Lawrence C. Tucker
----------------------
Lawrence C. Tucker
Date: October 14, 1999
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CUSIP No.632528-10-5 Page 20 of 20 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.
THE STRUCTURED FINANCE HIGH YIELD FUND, LLC
THE PRUDENTIAL INSURANCE COMPANY OF AMERICA
By: /s/ Michael J. Bozzo
------------------------
Name: Michael J. Bozzo
Title: Vice President
Date: October 12, 1999
