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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
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SCHEDULE 13D
Under the Securities Exchange Act of 1934
(Amendment No. 1)*
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PENTON MEDIA, INC.
(Name of Issuer)
COMMON STOCK, PAR VALUE $0.01 PER SHARE
(Title of Class of Securities)
709668 10 7
(CUSIP Number)
STACEY W. SEEWALD
C/O SANDLER CAPITAL MANAGEMENT
711 FIFTH AVENUE, 15TH FLOOR
NEW YORK, NY 10022
(Name, Address and Telephone Number of
Person Authorized to Receive Notices
and Communications)
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with a copy to:
DOUGLAS A. CIFU
PAUL, WEISS, RIFKIND, WHARTON & GARRISON LLP
1285 AVENUE OF THE AMERICAS
NEW YORK, NY 10019
JULY 11, 2006
(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), 1(f) or 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-1(a) 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 ("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).
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709668 10 7 Page 2 of 10
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NAME OF REPORTING PERSON
1 S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
Sandler Capital Management
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2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a) [X]
(b) [_]
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3 SEC USE ONLY
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4 SOURCE OF FUNDS
WC, OO
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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
New York
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7 SOLE VOTING POWER
-0-
NUMBER OF -----------------------------------------------
SHARES 8 SHARED VOTING POWER
BENEFICIALLY OWNED BY EACH
REPORTING 3,305,177
PERSON -----------------------------------------------
WITH 9 SOLE DISPOSITIVE POWER
-0-
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10 SHARED DISPOSITIVE POWER
3,305,177
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11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
3,305,177
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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)
8.75%
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14 TYPE OF REPORTING PERSON
PN
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709668 10 7 Page 3 of 10
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NAME OF REPORTING PERSON
1 S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
Sandler Investment Partners, L.P.
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2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a) [X]
(b) [_]
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3 SEC USE ONLY
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4 SOURCE OF FUNDS
WC, OO
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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
New York
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7 SOLE VOTING POWER
-0-
NUMBER OF -----------------------------------------------
SHARES 8 SHARED VOTING POWER
BENEFICIALLY OWNED BY EACH
REPORTING 3,305,177
PERSON -----------------------------------------------
WITH 9 SOLE DISPOSITIVE POWER
-0-
-----------------------------------------------
10 SHARED DISPOSITIVE POWER
3,305,177
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11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
3,305,177
-------------------------------------------------------------------------------
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)
8.75%
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14 TYPE OF REPORTING PERSON
PN
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709668 10 7 Page 4 of 10
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NAME OF REPORTING PERSON
1 S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
Sandler Capital Partners V, L.P.
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2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a) [X]
(b) [_]
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3 SEC USE ONLY
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4 SOURCE OF FUNDS
WC, OO
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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
Delaware
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7 SOLE VOTING POWER
2,357,472
NUMBER OF -----------------------------------------------
SHARES 8 SHARED VOTING POWER
BENEFICIALLY OWNED BY EACH
REPORTING -0-
PERSON -----------------------------------------------
WITH 9 SOLE DISPOSITIVE POWER
2,357,472
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10 SHARED DISPOSITIVE POWER
-0-
-------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
2,357,472
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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)
6.40%
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14 TYPE OF REPORTING PERSON
PN
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709668 10 7 Page 5 of 10
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NAME OF REPORTING PERSON
1 S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
Sandler Capital Partners V FTE, L.P.
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2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a) [X]
(b) [_]
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3 SEC USE ONLY
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4 SOURCE OF FUNDS
WC, OO
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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
Delaware
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7 SOLE VOTING POWER
861,109
NUMBER OF -----------------------------------------------
SHARES 8 SHARED VOTING POWER
BENEFICIALLY OWNED BY EACH
REPORTING -0-
PERSON -----------------------------------------------
WITH 9 SOLE DISPOSITIVE POWER
861,109
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10 SHARED DISPOSITIVE POWER
-0-
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11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
861,109
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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)
2.44%
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14 TYPE OF REPORTING PERSON
PN
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709668 10 7 Page 6 of 10
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NAME OF REPORTING PERSON
1 S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
Sandler Capital Partners V Germany, L.P.
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2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a) [X]
(b) [_]
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3 SEC USE ONLY
-------------------------------------------------------------------------------
4 SOURCE OF FUNDS
WC, OO
-------------------------------------------------------------------------------
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
Delaware
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7 SOLE VOTING POWER
86,596
NUMBER OF -----------------------------------------------
SHARES 8 SHARED VOTING POWER
BENEFICIALLY OWNED BY EACH
REPORTING -0-
PERSON -----------------------------------------------
WITH 9 SOLE DISPOSITIVE POWER
86,596
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10 SHARED DISPOSITIVE POWER
-0-
-------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
86,596
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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)
0.25%
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14 TYPE OF REPORTING PERSON
PN
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709668 10 7 Page 7 of 10
This Amendment No. 1 to Schedule 13D (this "STATEMENT") relates to the
common stock, par value $.01 per share (the "COMMON STOCK"), of Penton Media,
Inc. (the "ISSUER"). This Statement supplementally amends the initial statement
on Schedule 13D, filed on March 28, 2002 (the "INITIAL STATEMENT"), by Sandler
Capital Partners V, L.P., a Delaware limited partnership, Sandler Capital
Partners V FTE, L.P., a Delaware limited partnership, Sandler Capital Partners
V Germany, L.P., a Delaware limited partnership, Sandler Investment Partners,
L.P., a Delaware limited partnership and Sandler Capital Management, a New York
general partnership (collectively, the "REPORTING PERSONS"). In September 2004,
the Reporting Persons exchanged, on a share-for-share basis, all of the Series
B Convertible Preferred Stock of the Issuer held by them for Series C
Convertible Preferred Stock of the Issuer (the "SERIES C PREFERRED STOCK").
This Amendment No. 1 is being filed to report that the Reporting Persons have
entered into an agreement with the Issuer with respect to the allocation of any
transaction consideration between all of the holders (the "SERIES C PREFERRED
HOLDERS") of the Series C Preferred Stock (including the Reporting Persons) and
the holders of Common Stock, in order to resolve any allocation issues in
advance of any potential sale of the Issuer.
ITEM 6. CONTRACTS, ARRANGEMENTS, UNDERSTANDINGS OR RELATIONSHIP WITH RESPECT TO
THE ISSUER.
On July 11, 2006, the Issuer entered into an Agreement (the
"Agreement") with the Series C Preferred Holders, including the Reporting
Persons, relating to the allocation of transaction consideration between Series
C Preferred Holders and the holders of the Common Stock (the "COMMON STOCK
HOLDERS") , in the event of a sale of the Issuer.
The Agreement sets forth the agreement of the Series C Preferred
Holders to an allocation of net proceeds available for distribution to the
Series C Preferred Holders and the Common Stock Holders in the event of a sale
of the Issuer in which the net cash proceeds available for distribution to the
Series C Preferred Holders and the Common Stock Holders equals or exceeds $105
million, notwithstanding that the terms of the Series C Preferred Stock may
otherwise entitle the Series C Preferred Holders to a greater portion of such
proceeds.
The Agreement provides for the allocation to the Common Stock Holders
of 12.75% of the first $135 million of net proceeds (with a minimum allocation
to the Common Stock of at least $14 million), 15% of any additional net
proceeds up to $145 million, 25% of any additional net proceeds up to $185
million and 20% of any additional net proceeds over $185 million.
In the Agreement, the Series C Preferred Holders have further agreed
to vote in favor of, and to provide certain other consents and waivers (all
such obligations together, the "Consents") to facilitate, a sale transaction
entered into by the Issuer that yields aggregate net cash proceeds to the
Common Stock Holders and Series C Preferred Stock equal to or greater than $105
million. The Agreement does not obligate the Series C Preferred Holders to
provide the Consents if a sale transaction entered into by the Issuer yields
aggregate net cash proceeds to the Common Stock Holders and Series C Preferred
Holders of less than $105 million. The Agreement provides that it may be
terminated by the Series C Preferred Holders or by the Issuer if an agreement
for a sale of the Issuer has not been signed on or before February 1, 2007.
Except for the agreements described in response to this Item 6 or in
response to Items 3 and 4 of the Initial Statement, which are hereby
incorporated herein by reference, to the best knowledge of the Reporting
Persons, there are no contracts, arrangements, understandings or relationships
(legal or otherwise) between the Reporting Persons, and any other person, with
respect to any securities of the Issuer, including, but not limited to,
transfer or voting of any of the securities, finder's fees, joint ventures,
loan or option agreements, puts or calls, guarantees of profits, divisions of
profits or loss, or the giving or withholding of proxies. The Reporting
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709668 10 7 Page 8 of 10
Persons disclaim membership in any group, including any group with any holders
of Series C Preferred Stock other than the Reporting Persons.
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709668 10 7 Page 9 of 10
SIGNATURES
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 as of July 12, 2006.
SANDLER CAPITAL MANAGEMENT
By: MJDM Corp., a general partner
By: /s/ Moira Mitchell
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Name: Moira Mitchell
Title: President
SANDLER CAPITAL PARTNERS V, L.P.
By: Sandler Investment Partners, L.P.
By: Sandler Capital Management
By: MJDM Corp., a general partner
By: /s/ Moira Mitchell
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Name: Moira Mitchell
Title: President
SANDLER CAPITAL PARTNERS V FTE, L.P.
By: Sandler Investment Partners, L.P.
By: Sandler Capital Management
By: MJDM Corp., a general partner
By: /s/ Moira Mitchell
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Name: Moira Mitchell
Title: President
SANDLER CAPITAL PARTNERS V GERMANY, L.P.
By: Sandler Investment Partners, L.P.
By: Sandler Capital Management
By: MJDM Corp., a general partner
By: /s/ Moira Mitchell
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Name: Moira Mitchell
Title: President
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709668 10 7 Page 10 of 10
SANDLER INVESTMENT PARTNERS, L.P.
By: Sandler Capital Management
By: MJDM Corp., a general partner
By: /s/ Moira Mitchell
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Name: Moira Mitchell
Title: President