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SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
SCHEDULE 13D
(Amendment No. 3)
Under the Securities Exchange Act of 1934
Coventry Health Care, Inc.
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(Name of Issuer)
Common Stock, par value $0.01
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(Title of Class of Securities)
222862104
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(CUSIP Number of Class of Securities)
Patrick T. Hackett
E.M. Warburg, Pincus & Co., LLC
466 Lexington Avenue
New York, New York 10017
(212) 878-0600
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(Name, Address and Telephone Number of Person
Authorized to Receive Notices and Communications)
Copies to:
Steven J. Gartner, Esq.
Willkie Farr & Gallagher
787 Seventh Avenue
New York, NY 10019-6099
(212) 728-8000
August 12, 1998
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(Date of Event which Requires
Filing of this Schedule)
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(b)(3) or (4), check the following:
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SCHEDULE 13D
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CUSIP No. 222853103 Page 2 of 10 Pages
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1 NAME OF REPORT PERSON
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
Warburg, Pincus Ventures, L.P. I.D. #13-3784037
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2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a)
(b) X
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3 SEC USE ONLY
- ---- ---------------------------------------------------------------------------
4 SOURCE OF FUNDS*
WC
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5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDING IS REQUIRED PURSUANT TO
ITEMS 2(d) or 2(e) [ ]
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6 CITIZENSHIP OR PLACE OF ORGANIZATION
Delaware
- -------------- --------- -------------------------------------------------------
7 SOLE VOTING POWER
0
--------- -------------------------------------------------------
NUMBER OF 8 SHARED VOTING POWER
SHARES
BENEFICIALLY 0
OWNED BY
EACH
REPORTING
PERSON WITH
--------- -------------------------------------------------------
9 SOLE DISPOSITIVE POWER
0
--------- -------------------------------------------------------
10 SHARED DISPOSITIVE POWER
8,925,347
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11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH PERSON
8,925,347
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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)
13.8%
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14 TYPE OF REPORTING PERSON*
PN
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*SEE INSTRUCTIONS BEFORE FILLING OUT!
INCLUDE BOTH SIDES OF THE COVER PAGE, RESPONSES TO ITEMS 1-7
(INCLUDING EXHIBITS) OF THE SCHEDULE, AND THE SIGNATURE ATTESTATION.
<PAGE>
SCHEDULE 13D
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CUSIP No. 222853103 Page 3 of 10 Pages
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1 NAME OF REPORT PERSON
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
Warburg, Pincus & Co. I.D. #13-6358475
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2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a)
(b) X
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3 SEC USE ONLY
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4 SOURCE OF FUNDS*
N/A
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5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDING IS REQUIRED PURSUANT TO
ITEMS 2(d) or 2(e) [ ]
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6 CITIZENSHIP OR PLACE OF ORGANIZATION
New York
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7 SOLE VOTING POWER
0
--------- -------------------------------------------------------
NUMBER OF 8 SHARED VOTING POWER
SHARES
BENEFICIALLY 0
OWNED BY
EACH
REPORTING
PERSON WITH
--------- -------------------------------------------------------
9 SOLE DISPOSITIVE POWER
0
- ---- ---------------------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
8,925,347
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11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH PERSON
8,925,347
- ---- ---------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES*
[ ]
- ---- ---------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
13.8%
- ---- ---------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
PN
- ---- ---------------------------------------------------------------------------
*SEE INSTRUCTIONS BEFORE FILLING OUT!
INCLUDE BOTH SIDES OF THE COVER PAGE, RESPONSES TO ITEMS 1-7
(INCLUDING EXHIBITS) OF THE SCHEDULE, AND THE SIGNATURE ATTESTATION.
<PAGE>
SCHEDULE 13D
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CUSIP No. 222853103 Page 4 of 10 Pages
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1 NAME OF REPORT PERSON
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
E.M. Warburg, Pincus & Co., LLC I.D. #13-3536050
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2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a)
(b) X
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3 SEC USE ONLY
- ---- ---------------------------------------------------------------------------
4 SOURCE OF FUNDS*
N/A
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5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDING IS REQUIRED PURSUANT TO
ITEMS 2(d) or 2(e) [ ]
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6 CITIZENSHIP OR PLACE OF ORGANIZATION
New York
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7 SOLE VOTING POWER
0
--------- -------------------------------------------------------
NUMBER OF 8 SHARED VOTING POWER
SHARES
BENEFICIALLY 0
OWNED BY
EACH
REPORTING
PERSON WITH
--------- -------------------------------------------------------
9 SOLE DISPOSITIVE POWER
0
--------- -------------------------------------------------------
10 SHARED DISPOSITIVE POWER
8,925,347
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11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH PERSON
8,925,347
- ---- ---------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES*
[ ]
- ---- ---------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
13.8%
- ---- ---------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
OO
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*SEE INSTRUCTIONS BEFORE FILLING OUT!
INCLUDE BOTH SIDES OF THE COVER PAGE, RESPONSES TO ITEMS 1-7
(INCLUDING EXHIBITS) OF THE SCHEDULE, AND THE SIGNATURE ATTESTATION.
<PAGE>
SCHEDULE 13D
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CUSIP No. 222853103 Page 5 of 10 Pages
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1 NAME OF REPORT PERSON
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
Patrick T. Hackett
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2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a)
(b) X
- ---- ---------------------------------------------------------------------------
3 SEC USE ONLY
- ---- ---------------------------------------------------------------------------
4 SOURCE OF FUNDS*
N/A
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5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDING IS REQUIRED PURSUANT TO
ITEMS 2(d) or 2(e) [ ]
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6 CITIZENSHIP OR PLACE OF ORGANIZATION
United States of America
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7 SOLE VOTING POWER
5,000
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NUMBER OF 8 SHARED VOTING POWER
SHARES
BENEFICIALLY 8,925,347
OWNED BY
EACH
REPORTING
PERSON WITH
--------- -------------------------------------------------------
9 SOLE DISPOSITIVE POWER
5,000
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10 SHARED DISPOSITIVE POWER
0
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11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH PERSON
8,930,347
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12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES*
[ ]
- ---- ---------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
13.8%
- ---- ---------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
IN
- ---- ---------------------------------------------------------------------------
*SEE INSTRUCTIONS BEFORE FILLING OUT!
INCLUDE BOTH SIDES OF THE COVER PAGE, RESPONSES TO ITEMS 1-7
(INCLUDING EXHIBITS) OF THE SCHEDULE, AND THE SIGNATURE ATTESTATION.
<PAGE>
SCHEDULE 13D
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CUSIP No. 222853103 Page 6 of 10 Pages
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1 NAME OF REPORT PERSON
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
Joel Ackerman
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2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a)
(b) X
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3 SEC USE ONLY
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4 SOURCE OF FUNDS*
N/A
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5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDING IS REQUIRED PURSUANT TO
ITEMS 2(d) or 2(e) [ ]
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6 CITIZENSHIP OR PLACE OF ORGANIZATION
United States of America
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7 SOLE VOTING POWER
0
--------- -------------------------------------------------------
NUMBER OF 8 SHARED VOTING POWER
SHARES
BENEFICIALLY 8,925,347
OWNED BY
EACH
REPORTING
PERSON WITH
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9 SOLE DISPOSITIVE POWER
0
--------- -------------------------------------------------------
10 SHARED DISPOSITIVE POWER
0
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11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH PERSON
8,925,347
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12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES*
[ ]
- ---- ---------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
13.8%
- ---- ---------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
IN
- ---- ---------------------------------------------------------------------------
*SEE INSTRUCTIONS BEFORE FILLING OUT!
INCLUDE BOTH SIDES OF THE COVER PAGE, RESPONSES TO ITEMS 1-7
(INCLUDING EXHIBITS) OF THE SCHEDULE, AND THE SIGNATURE ATTESTATION.
<PAGE>
SCHEDULE 13D
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CUSIP No. 222853103 Page 7 of 10 Pages
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1 NAME OF REPORT PERSON
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
Jonathan S. Leff
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2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a)
(b) X
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3 SEC USE ONLY
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4 SOURCE OF FUNDS*
N/A
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5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDING 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 8 SHARED VOTING POWER
SHARES
BENEFICIALLY 8,925,347
OWNED BY
EACH
REPORTING
PERSON WITH
--------- -------------------------------------------------------
9 SOLE DISPOSITIVE POWER
0
--------- -------------------------------------------------------
10 SHARED DISPOSITIVE POWER
0
- ---- ---------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH PERSON
8,925,347
- ---- ---------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES*
[ ]
- ---- ---------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
13.8%
- ---- ---------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
IN
- ---- ---------------------------------------------------------------------------
*SEE INSTRUCTIONS BEFORE FILLING OUT!
INCLUDE BOTH SIDES OF THE COVER PAGE, RESPONSES TO ITEMS 1-7
(INCLUDING EXHIBITS) OF THE SCHEDULE, AND THE SIGNATURE ATTESTATION.
<PAGE>
This Amendment No. 3 amends the Schedule 13D filed on April 9, 1998 (as
amended, the "Schedule 13D") on behalf of Warburg, Pincus Ventures, L.P., a
Delaware limited partnership ("Ventures"), Warburg, Pincus & Co., a New York
general partnership ("WP"), E.M. Warburg, Pincus & Co., LLC, a New York limited
liability company ("EMW"), and Patrick T. Hackett, Joel Ackerman, and Jonathan
S. Leff (the "Trustees"), as trustees of a voting trust (the "Voting Trust")
under a voting trust agreement, dated as of April 15, 1997 (as supplemented on
November 12, 1997, the "Voting Trust Agreement"), relating to the common stock,
par value $0.01 per share, of Coventry Health Care, Inc., a Delaware corporation
(the "Company").
Unless otherwise indicated herein, each capitalized term used but not
defined herein shall have the meaning assigned to such term in the Schedule 13D.
Item 3
Item 3 of the Schedule 13D is hereby amended by adding the following:
"The total amount of funds required by Ventures to purchase the Securities,
was $58,128,406 and was furnished from the working capital of Ventures."
8 of 10 Pages
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Item 5
Paragraph (a) of Item 5 is hereby amended and restated in its entirety to
read as follows:
"As of August 13, 1998, Ventures beneficially owned 8,925,347 shares of
Common Stock, subject to adjustment. By reason of their respective relationships
with Ventures, each of the Reporting Entities may be deemed under Rule 13d-3
under the Exchange Act to own beneficially all of the shares of Common Stock
which Ventures beneficially owns. As of August 13, 1998, 8,925,347 shares of
Common Stock represented approximately 13.8% of the outstanding shares of Common
Stock, based on the 58,682,328 shares of Common Stock outstanding as of July 31,
1998, as reported to the Reporting Entities by the Company."
Schedule I hereto sets forth a list of open market purchases of Common
Stock made by Ventures since the filing of Amendment No. 2.
9 of 10 Pages
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SIGNATURES
After reasonable inquiry and to the best of our knowledge and belief, the
undersigned certify that the information set forth in this statement is true,
complete and correct.
Dated: August 12, 1998 WARBURG, PINCUS VENTURES,
L.P.
By: Warburg, Pincus & Co.,
General Partner
By:/s/ Stephen Distler
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Partner
Dated: August 12, 1998 WARBURG, PINCUS & CO.
By:/s/ Stephen Distler
----------------------
Partner
Dated: August 12, 1998 E.M. WARBURG, PINCUS & CO.,
LLC
By:/s/ Stephen Distler
----------------------
Member
Dated: August 12, 1998 By:/s/ Patrick T. Hackett
----------------------
Trustee
Dated: August 12, 1998 By:/s/ Joel Ackerman
-----------------
Trustee
Dated: August 12, 1998 By:/s/ Jonathan S. Leff
--------------------
Trustee
10 of 10 Pages
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Schedule I
Recent Purchases of the Common Stock
of Coventry Health Care, Inc.1
Name of Number of Price Per Date
Purchaser Shares Purchased Share of Trade
Ventures 1,000,000 $5.4375 8/12/98
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1 Each of the above purchases was made on the Nasdaq National Market, on
which the Common Stock is traded. Amendment No. 2 to the Schedule 13D
indicated that Warburg received interest as of May 28, 1998 on its
Convertible Exchangeable Notes, payable in additional Convertible
Exchangeable Notes. As a result of this interest, Warburg acquired
beneficial ownership interest of an additional 155,600 shares of Common
Stock, rather than the 149,400 shares originally reported.
S-1
