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SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
SCHEDULE 13D/A
UNDER THE SECURITIES EXCHANGE ACT OF 1934
(AMENDMENT NO. 3)
COHO ENERGY, INC.
(Name of Issuer)
COMMON STOCK, $0.01 PAR VALUE
(Title of Class of Securities)
19248110
(CUSIP Number)
THOMAS O. HICKS
200 CRESCENT COURT
SUITE 1600
DALLAS, TEXAS 75201
(214) 740-7300
(Name, Address and Telephone Number of Person Authorized to Receive
Notices and Communications)
Copy to:
MICHAEL D. WORTLEY
VINSON & ELKINS L.L.P.
3700 TRAMMELL CROW CENTER
2001 ROSS AVENUE
DALLAS, TEXAS 75201
(214) 220-7732
FEBRUARY 12, 1999
(Date of Event which Requires Filing of this Statement on Schedule 13D/A)
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CUSIP NO. 19248110 Schedule 13D/A Page 2 of 16
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1 Name of Reporting Person, S.S. or I.R.S. Identification No. of
Above Person
Energy Investment Partnership No. 1
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2 Check the appropriate box if a member of a group (a) [ ]
(b) [ ]
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3 SEC Use Only
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4 Source of Funds
WC
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5 Check Box if Disclosure of Legal Proceedings is Required [ ]
Pursuant to Items 2(d) or 2(e)
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6 Citizenship or Place of Organization
State of Texas
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Number of Shares 7 Sole Voting Power
0
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Beneficially 8 Shared Voting Power
Owned 2,182,084
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by Each Reporting 9 Sole Dispositive Power
0
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Person With 10 Shared Dispositive Power
2,182,084
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11 Aggregate Amount Beneficially Owned by Each Reporting Person
2,182,084
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12 Check Box if the Aggregate Amount in Row (11) Excludes [ ]
Certain Shares
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13 Percent of Class Represented by Amount in Row (11)
8.5%
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14 Type of Reporting Person
PN
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CUSIP NO. 19248110 Schedule 13D/A Page 3 of 16
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1 Name of Reporting Person, S.S. or I.R.S. Identification No. of
Above Person
Thomas O. Hicks
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2 Check the appropriate box if a member of a group (a) [ ]
(b) [ ]
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3 SEC Use Only
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4 Source of Funds
PF
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5 Check Box if Disclosure of Legal Proceedings is Required [ ]
Pursuant to Items 2(d) or 2(e)
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6 Citizenship or Place of Organization
State of Texas
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Number of Shares 7 Sole Voting Power
0
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Beneficially 8 Shared Voting Power
Owned 2,182,084
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by Each Reporting 9 Sole Dispositive Power
0
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Person With 10 Shared Dispositive Power
2,182,084
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11 Aggregate Amount Beneficially Owned by Each Reporting Person
2,182,084
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12 Check Box if the Aggregate Amount in Row (11) Excludes [ ]
Certain Shares
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13 Percent of Class Represented by Amount in Row (11)
8.5%
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14 Type of Reporting Person
IN
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<PAGE> 4
CUSIP NO. 19248110 Schedule 13D/A Page 4 of 16
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1 Name of Reporting Person, S.S. or I.R.S. Identification No. of
Above Person
John R. Muse
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2 Check the appropriate box if a member of a group (a) [ ]
(b) [ ]
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3 SEC Use Only
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4 Source of Funds
PF
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5 Check Box if Disclosure of Legal Proceedings is Required [ ]
Pursuant to Items 2(d) or 2(e)
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6 Citizenship or Place of Organization
State of Texas
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Number of Shares 7 Sole Voting Power
0
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Beneficially 8 Shared Voting Power
Owned 2,182,084
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by Each Reporting 9 Sole Dispositive Power
0
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Person With 10 Shared Dispositive Power
2,182,084
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11 Aggregate Amount Beneficially Owned by Each Reporting Person
2,182,084
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12 Check Box if the Aggregate Amount in Row (11) Excludes [ ]
Certain Shares
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13 Percent of Class Represented by Amount in Row (11)
8.5%
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14 Type of Reporting Person
IN
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CUSIP NO. 19248110 Schedule 13D/A Page 5 of 16
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1 Name of Reporting Person, S.S. or I.R.S. Identification No. of
Above Person
Charles W. Tate
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2 Check the appropriate box if a member of a group (a) [ ]
(b) [ ]
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3 SEC Use Only
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4 Source of Funds
PF
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5 Check Box if Disclosure of Legal Proceedings is Required [ ]
Pursuant to Items 2(d) or 2(e)
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6 Citizenship or Place of Organization
State of Texas
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Number of Shares 7 Sole Voting Power
0
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Beneficially 8 Shared Voting Power
Owned 2,182,084
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by Each Reporting 9 Sole Dispositive Power
0
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Person With 10 Shared Dispositive Power
2,182,084
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11 Aggregate Amount Beneficially Owned by Each Reporting Person
2,182,084
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12 Check Box if the Aggregate Amount in Row (11) Excludes [ ]
Certain Shares
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13 Percent of Class Represented by Amount in Row (11)
8.5%
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14 Type of Reporting Person
IN
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CUSIP NO. 19248110 Schedule 13D/A Page 6 of 16
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1 Name of Reporting Person, S.S. or I.R.S. Identification No. of
Above Person
Jack D. Furst
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2 Check the appropriate box if a member of a group (a) [ ]
(b) [ ]
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3 SEC Use Only
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4 Source of Funds
PF
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5 Check Box if Disclosure of Legal Proceedings is Required [ ]
Pursuant to Items 2(d) or 2(e)
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6 Citizenship or Place of Organization
State of Texas
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Number of Shares 7 Sole Voting Power
0
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Beneficially 8 Shared Voting Power
Owned 2,182,084
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by Each Reporting 9 Sole Dispositive Power
0
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Person With 10 Shared Dispositive Power
2,182,084
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11 Aggregate Amount Beneficially Owned by Each Reporting Person
2,182,084
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12 Check Box if the Aggregate Amount in Row (11) Excludes [ ]
Certain Shares
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13 Percent of Class Represented by Amount in Row (11)
8.5%
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14 Type of Reporting Person
IN
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CUSIP NO. 19248110 Schedule 13D/A Page 7 of 16
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1 Name of Reporting Person, S.S. or I.R.S. Identification No. of
Above Person
Lawrence D. Stuart, Jr.
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2 Check the appropriate box if a member of a group (a) [ ]
(b) [ ]
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3 SEC Use Only
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4 Source of Funds
PF
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5 Check Box if Disclosure of Legal Proceedings is Required [ ]
Pursuant to Items 2(d) or 2(e)
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6 Citizenship or Place of Organization
State of Texas
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Number of Shares 7 Sole Voting Power
0
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Beneficially 8 Shared Voting Power
Owned 2,182,084
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by Each Reporting 9 Sole Dispositive Power
0
- --------------------------------------------------------------------------------
Person With 10 Shared Dispositive Power
2,182,084
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11 Aggregate Amount Beneficially Owned by Each Reporting Person
2,182,084
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12 Check Box if the Aggregate Amount in Row (11) Excludes [ ]
Certain Shares
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13 Percent of Class Represented by Amount in Row (11)
8.5%
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14 Type of Reporting Person
IN
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CUSIP NO. 19248110 Schedule 13D/A Page 8 of 16
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1 Name of Reporting Person, S.S. or I.R.S. Identification No. of
Above Person
Michael J. Levitt
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2 Check the appropriate box if a member of a group (a) [ ]
(b) [ ]
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3 SEC Use Only
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4 Source of Funds
PF
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5 Check Box if Disclosure of Legal Proceedings is Required [ ]
Pursuant to Items 2(d) or 2(e)
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6 Citizenship or Place of Organization
State of Texas
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Number of Shares 7 Sole Voting Power
0
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Beneficially 8 Shared Voting Power
Owned 2,182,084
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by Each Reporting 9 Sole Dispositive Power
0
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Person With 10 Shared Dispositive Power
2,182,084
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11 Aggregate Amount Beneficially Owned by Each Reporting Person
2,182,084
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12 Check Box if the Aggregate Amount in Row (11) Excludes [ ]
Certain Shares
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13 Percent of Class Represented by Amount in Row (11)
8.5%
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14 Type of Reporting Person
IN
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CUSIP NO. 19248110 Schedule 13D/A Page 9 of 16
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1 Name of Reporting Person, S.S. or I.R.S. Identification No. of
Above Person
Dan H. Blanks
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2 Check the appropriate box if a member of a group (a) [ ]
(b) [ ]
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3 SEC Use Only
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4 Source of Funds
PF
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5 Check Box if Disclosure of Legal Proceedings is Required [ ]
Pursuant to Items 2(d) or 2(e)
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6 Citizenship or Place of Organization
State of Texas
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Number of Shares 7 Sole Voting Power
0
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Beneficially 8 Shared Voting Power
Owned 2,182,084
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by Each Reporting 9 Sole Dispositive Power
0
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Person With 10 Shared Dispositive Power
2,182,084
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11 Aggregate Amount Beneficially Owned by Each Reporting Person
2,182,084
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12 Check Box if the Aggregate Amount in Row (11) Excludes [ ]
Certain Shares
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13 Percent of Class Represented by Amount in Row (11)
8.5%
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14 Type of Reporting Person
IN
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CUSIP NO. 19248110 Schedule 13D/A Page 10 of 16
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1 Name of Reporting Person, S.S. or I.R.S. Identification No. of
Above Person
David B. Deniger
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2 Check the appropriate box if a member of a group (a) [ ]
(b) [ ]
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3 SEC Use Only
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4 Source of Funds
PF
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5 Check Box if Disclosure of Legal Proceedings is Required [ ]
Pursuant to Items 2(d) or 2(e)
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6 Citizenship or Place of Organization
State of Texas
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Number of Shares 7 Sole Voting Power
0
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Beneficially 8 Shared Voting Power
Owned 2,182,084
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by Each Reporting 9 Sole Dispositive Power
0
- --------------------------------------------------------------------------------
Person With 10 Shared Dispositive Power
2,182,084
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11 Aggregate Amount Beneficially Owned by Each Reporting Person
2,182,084
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12 Check Box if the Aggregate Amount in Row (11) Excludes [ ]
Certain Shares
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13 Percent of Class Represented by Amount in Row (11)
8.5%
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14 Type of Reporting Person
IN
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Schedule 13D/A Page 11 of 16
This Amendment No. 3 to Schedule 13D is being filed by Energy
Investment Partnership No. 1, a Texas general partnership (the "Purchaser"),
Thomas O. Hicks, a United States citizen ("Hicks"), John R. Muse, a United
States citizen ("Muse"), Charles W. Tate, a United States citizen ("Tate"), Jack
D. Furst, a United States citizen ("Furst"), Lawrence D. Stuart, Jr., a United
States citizen ("Stuart"), Michael J. Levitt, a United States citizen
("Levitt"), Dan H. Blanks, a United States citizen ("Blanks"), and David B.
Deniger, a United States citizen ("Deniger"). The Purchaser, Hicks, Muse, Tate,
Furst, Stuart, Levitt, Blanks and Deniger are collectively referred to herein as
the "Reporting Persons." This Amendment to Schedule 13D amends and restates
Items 3, 4 and 6 contained in the Reporting Persons' original Schedule 13D dated
May 18, 1998, as amended by Amendment No. 1 to Schedule 13D dated August 21,
1998 and Amendment No. 2 to Schedule 13D dated December 18, 1998. Items 1, 2, 5
and 7 of the original Schedule 13D, as previously amended, remain unchanged.
Each Reporting Person disclaims responsibility for the completeness and accuracy
of the information contained in this statement concerning the other Reporting
Persons.
ITEM 3. SOURCES AND AMOUNT OF FUNDS OR OTHER CONSIDERATION.
The Purchaser utilized $15,530,802 of its working capital to purchase
the 2,182,084 shares of common stock, par value $0.01 per share (the "Common
Stock"), beneficially owned by the Purchaser (the "Shares") and to pay related
fees and expenses. This working capital was provided by capital contributions
from Hicks, Muse, Tate, Furst, Stuart, Levitt, Blanks and Deniger. Each of
Hicks, Muse, Tate, Furst, Stuart, Levitt, Blanks and Deniger obtained the funds
contributed to the Purchaser from personal funds.
On August 21, 1998, HM 4 Coho, L.P., a Texas limited partnership (the
"Partnership"), and the Company entered into a Stock Purchase Agreement (the
"Stock Purchase Agreement") which provided that, subject to the terms and
condition set forth therein, the Partnership would purchase 41,666,666 shares of
Common Stock for $249,999,996 by wire transfer of immediately available funds
(the "Purchase Price"). On November 4, 1998, the Stock Purchase Agreement was
amended and restated. On December 18, 1998, the Partnership terminated the
Amended and Restated Stock Purchase Agreement, subject to the Company's right to
cure its breach of certain representations and warranties caused by the
occurrence of a Material Adverse Effect as defined in the Amended and Restated
Stock Purchase Agreement. Although the Partnership and the Company continued
negotiations following such termination, the Partnership concluded that the
Company did not cure its breach of such representations and warranties. On
February 12, 1999, the Partnership informed the Company that it would not
continue negotiations for the purchase of shares of Common Stock.
ITEM 4. PURPOSE OF THE TRANSACTION.
The purpose of the acquisition of the Shares was to implement the
Reporting Person's plan to obtain a substantial, but not majority, investment in
the Company.
(a) Neither the Partnership nor the Reporting Persons have
any current plans to purchase additional shares of Common Stock in open market
or private transactions from shareholders of the Company or to purchase
additional shares of Common Stock or Common Stock equivalents directly from the
Company. The Reporting Persons may sell shares of Common Stock in open market or
private transactions. Any change with respect to these plans shall be reported
promptly in an amendment to the Purchaser's Schedule 13D.
(b), (c), (e), (f), (g), (h), (i) and (j) Neither the
Partnership nor the Reporting Persons have current plans or proposals which
relate to or would result in (i) an extraordinary corporate transaction, such as
a merger, reorganization or liquidation, involving the Company or any of its
subsidiaries, (ii) a sale or transfer of a material amount of assets of the
Company or any of its subsidiaries, (iii) any material change in the present
capitalization or dividend policy of the Company, (iv) any other material change
to the Company's business or corporate structure, (v) subject to the matters
discussed in paragraph (d) of this Item 4, any changes in the Company's articles
of incorporation or bylaws, or other actions which may impede the acquisition or
control of the Company by any person, (vi)
<PAGE> 12
Schedule 13D/A Page 12 of 16
the Common Stock ceasing to be authorized to be quoted on the NASDAQ National
Market System, (vii) the Common Stock becoming eligible for termination of
registration pursuant to Section 12(g)(4) of the Securities Exchange Act of 1934
(the "Exchange Act"), or (viii) any action similar to any of the foregoing. Any
change with respect to these plans shall be promptly reported in an amendment to
the Purchaser's Schedule 13D.
(d) On May 12, 1998, the Company and the Purchaser entered
into a Shareholder Agreement (the "Shareholder Agreement") which provided for
(i) certain demand and piggyback registration rights with respect to the shares
of Common Stock owned at such time or in the future by the Purchaser or its
transferees who become a party to the Shareholder Agreement and (ii) the
appointment or election and annual nomination to the Board of Directors of the
Company and the Board's Compensation Committee and Audit Committee and any
Executive Committee of two designees of the Purchaser (the "Purchaser
Designees") and any of its transferees who become a party to the Shareholder
Agreement, subject to certain Common Stock ownership requirements. Pursuant to
the Shareholder Agreement, the Purchaser Designees, Muse and Stuart, were added
to the Board of Directors on May 12, 1998, to serve until the next annual
meeting of shareholders of the Company. There are currently seven directors
serving on the Company's Board of Directors, including the Purchaser's
Designees.
<PAGE> 13
Schedule 13D/A Page 13 of 16
ITEM 6. CONTRACTS, ARRANGEMENTS, UNDERSTANDINGS OR RELATIONSHIPS WITH RESPECT
TO SECURITIES OF THE ISSUER.
Shareholder Agreement. On May 12, 1998, the Purchaser and the Company
entered into the Shareholder Agreement (see Item 4). The Shareholder Agreement
provides the Purchaser (and its transferees who become a party to the
Shareholder Agreement) with three demand registrations (in firm commitment
underwritten offerings) and unlimited piggyback registration rights with respect
to the Shares and all shares of Common Stock acquired by the Purchaser in the
future. With certain exceptions, the Company will pay all costs of such
registration except for underwriting discounts and commissions and transfer
taxes. The Company has certain rights to delay the filing of a registration
statement, and parties to other registration rights agreements with the Company
have a right, under certain circumstances, to sell shares of Common Stock in
connection with registrations involving shares owned by the Purchaser and,
thereby, reduce the number of shares being sold by the Purchaser.
Each Holder under the Shareholder Agreement (including the Purchaser)
has agreed therein not to (i) deposit any shares of Common Stock in a voting
trust or grant any proxy with respect to any shares of Common Stock to any
person not designated by the Company or subject any shares of Common Stock to
any arrangement or agreement with respect to the voting of such shares of Common
Stock, (ii) act with one or more persons (other than another Holder or any
affiliate of partner of a Holder) as a partnership, limited partnership,
syndicate or "group" (as such term is used in Section 13(d)(3) of the Exchange
Act) for the purpose of acquiring, holding, voting or disposing of shares of
Common Stock, (iii) prior to the second anniversary of the Shareholder
Agreement and subject to certain exceptions, directly or indirectly, sell or
transfer, or offer to sell or transfer, (A) shares of Common Stock that
represent more than 10% of the fully diluted common equity of the Company to
any single Person or Affiliated Group or (B) to any holder of 10% of the
outstanding shares of Common Stock, shares of Common Stock that represent more
than 5% of the outstanding Common Stock of the Company.
Financial Advisory Agreement. On August 21, 1998, the Company and
Hicks, Muse & Co. Partners, L.P., a Texas limited partnership ("HMCo"), entered
into a Financial Advisory Agreement (the "Financial Advisory Agreement"). On
November 4, 1998, the Financial Advisory Agreement was amended and restated (as
so amended and restated, the "Amended and Restated Financial Advisory
Agreement"). HM Partners Inc., in which Hicks owns a majority equity interest,
is the general partner of HMCo and Hicks, Muse, Tate, Furst, Stuart, Levitt,
Blanks and Deniger are HMCo's limited partners. Pursuant to the Amended and
Restated Financial Advisory Agreement, HMCo has been engaged to render financial
advisory, investment banking and other similar services to the Company with
respect to any future proposals for (i) the acquisition by any person or group
of beneficial ownership of (A) a majority of the combined voting power of the
then outstanding securities of the Company entitled to vote generally in the
election of directors, or (B) a majority of the Company's outstanding capital
stock, (ii) a reorganization, recapitalization, merger, consolidation or similar
business combination or transaction or sale or other disposition (whether in a
single transaction or series of related transactions) of all or substantially
all of the assets of the Company and its subsidiaries taken as a whole (unless
the holders of the outstanding securities of the Company entitled to vote
generally in the election of directors prior to such transaction continue to own
at least a majority of the securities entitled to vote generally in the election
of directors of the entity resulting from such transaction upon the completion
of such transaction), (iii) the sale of oil and gas properties of the Company or
its
<PAGE> 14
Schedule 13D/A Page 14 of 16
subsidiaries involving consideration of $100 million or more, (iv) any
acquisition by the Company or its subsidiaries involving consideration of $100
million or more of (A) a majority of the voting power of the then outstanding
voting securities of any corporation entitled to voting generally in the
election of directors or (B) a majority of the ownership interests of an entity
other than a corporation (whether by merger, tender offer, exchange offer or
similar extraordinary transaction), or (v) any acquisition by the Company or its
subsidiaries of oil and gas properties or other assets involving consideration
of $100 million or more (collectively, "Additional Transactions"). The term of
the Amended and Restated Financial Advisory Agreement will continue until the
earlier to occur of November 4, 2008 or the date on which the Partnership and
its affiliates cease to own beneficially, directly or indirectly, at least 5% of
the outstanding equity securities of the Company or its successors.
Pursuant to the terms of the Amended and Restated Financial Advisory
Agreement, the Company paid HMCo a transaction fee of $1,250,000 concurrently
with the execution of the Stock Purchase Agreement on August 21, 1998. Under
the Financial Advisory Agreement, HMCo is entitled to receive compensation at
then current market rates for financial advisory, investment banking and other
similar services rendered to the Company in connection with Additional
Transactions if the Company engages a financial advisor in connection with such
transactions.
<PAGE> 15
Schedule 13D/A Page 15 of 16
SIGNATURES
After due inquiry and to the best of my knowledge and belief, the
undersigned certify that the information set forth in this statement is true,
complete and correct.
Dated: February 16, 1999 ENERGY INVESTMENT PARTNERSHIP NO. 1
By: /s/ David W. Knickel
--------------------------------------
David W. Knickel
Attorney-in-Fact
Dated: February 16, 1999 THOMAS O. HICKS
/s/ David W. Knickel
-----------------------------------------
By: David W. Knickel, Attorney-in-Fact
Dated: February 16, 1999 JOHN R. MUSE
/s/ David W. Knickel
-----------------------------------------
By: David W. Knickel, Attorney-in-Fact
Dated: February 16, 1999 CHARLES W. TATE
/s/ David W. Knickel
-----------------------------------------
By: David W. Knickel, Attorney-in-Fact
Dated: February 16, 1999 JACK D. FURST
/s/ David W. Knickel
-----------------------------------------
By: David W. Knickel, Attorney-in-Fact
<PAGE> 16
Schedule 13D/A Page 16 of 16
Dated: February 16, 1999 LAWRENCE D. STUART, JR.
/s/ David W. Knickel
-----------------------------------------
By: David W. Knickel, Attorney-in-Fact
Dated: February 16, 1999 MICHAEL J. LEVITT
/s/ David W. Knickel
-----------------------------------------
By: David W. Knickel, Attorney-in-Fact
Dated: February 16, 1999 DAN H. BLANKS
/s/ David W. Knickel
-----------------------------------------
By: David W. Knickel, Attorney-in-Fact
Dated: February 16, 1998 DAVID B. DENIGER
/s/ David W. Knickel
-----------------------------------------
By: David W. Knickel, Attorney-in-Fact
