SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
SCHEDULE 13D
Under the Securities Exchange Act of 1934
(Amendment No. 8)*
Rare Medium Group, Inc.
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(Name of Issuer)
Common Stock, par value $0.01 per share
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(Title of Class of Securities)
449238203
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(CUSIP Number)
Paul A. Belvin
Akin, Gump, Strauss, Hauer & Feld, L.L.P.
1333 New Hampshire Avenue N.W.
Washington, D.C. 20036
(202) 887-4000
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(Name, Address and Telephone Number of Person Authorized to
Receive Notices and Communications)
January 3, 2003
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(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 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 ("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).
SCHEDULE 13D
CUSIP No. 449238203 Page 2 of 11 Pages
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1. Names of Reporting Persons.
I.R.S. Identification Nos. of above persons (entities only).
Apollo Investment Fund IV, L.P.
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2. Check the Appropriate Box if a Member of a Group (See Instructions)
(a) [X]
(b)
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3. SEC Use Only
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4. Source of Funds (See Instructions) OO
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5. Check 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
Number of 3,154,828
Shares
Beneficially 8. Shared Voting Power
Owned By 4,593,840
Each
Reporting 9. Sole Dispositive Power
Person 11,725,426 (See footnote below*)
With
10. Shared Dispositive Power
13,584,052 (See footnote below*)
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11. Aggregate Amount Beneficially Owned by Each Reporting Person
13,584,052 shares of Common Stock (See footnote below*)
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12. Check if the Aggregate Amount in Row (11) Excludes Certain Shares
(See Instructions) [_]
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13. Percent of Class Represented by Amount in Row (11) 73.3%
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14. Type of Reporting Person (See Instructions) PN
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(*) Includes Non-Voting Stock acquired by the Initial Reporting
Persons. See Item 4 in Amendment No.7 to this Schedule 13D.
SCHEDULE 13D
CUSIP No. 449238203 Page 3 of 11 Pages
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1. Names of Reporting Persons.
I.R.S. Identification Nos. of above persons (entities only).
Apollo Overseas Partners IV, L.P.
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2. Check the Appropriate Box if a Member of a Group (See Instructions)
(a) [X]
(b)
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3. SEC Use Only
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4. Source of Funds (See Instructions) OO
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5. Check 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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Number of 7. Sole Voting Power
Shares 169,185
Beneficially
Owned By 8. Shared Voting Power
Each 4,593,840
Reporting
Person 9. Sole Dispositive Power
With 588,799 (See footnote below*)
10. Shared Dispositive Power
13,584,052 (See footnote below*)
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11. Aggregate Amount Beneficially Owned by Each Reporting Person
13,584,052 shares of Common Stock (See footnote below*)
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12. Check if the Aggregate Amount in Row (11) Excludes Certain
Shares (See Instructions) [_]
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13. Percent of Class Represented by Amount in Row (11) 73.3%
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14. Type of Reporting Person (See Instructions) PN
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(*) Includes Non-Voting Stock acquired by the Initial Reporting
Persons. See Item 4 in Amendment No.7 to this Schedule 13D.
SCHEDULE 13D
CUSIP No. 449238203 Page 4 of 11 Pages
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1. Names of Reporting Persons.
I.R.S. Identification Nos. of above persons (entities only).
AIF IV/RRRR LLC
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2. Check the Appropriate Box if a Member of a Group (See Instructions)
(a) [X]
(b)
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3. SEC Use Only
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4. Source of Funds (See Instructions) OO
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5. Check 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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Number of 7. Sole Voting Power
Shares 795,400
Beneficially
Owned By 8. Shared Voting Power
Each 4,593,840
Reporting
Person 9. Sole Dispositive Power
With 795,400 (See footnote below*)
10. Shared Dispositive Power
13,584,052 (See footnote below*)
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11. Aggregate Amount Beneficially Owned by Each Reporting Person
13,584,052 shares of Common Stock (See footnote below*)
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12. Check if the Aggregate Amount in Row (11) Excludes Certain Shares
(See Instructions) [_]
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13. Percent of Class Represented by Amount in Row (11) 73.3%
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14. Type of Reporting Person (See Instructions) OO
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(*) Includes Non-Voting Stock acquired by the Initial Reporting
Persons. See Item 4 in Amendment No.7 to this Schedule 13D.
SCHEDULE 13D
CUSIP No. 449238203 Page 5 of 11 Pages
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1. Names of Reporting Persons.
I.R.S. Identification Nos. of above persons (entities only).
Apollo Advisors IV, L.P.
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2. Check the Appropriate Box if a Member of a Group (See Instructions)
(a) [X]
(b)
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3. SEC Use Only
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4. Source of Funds (See Instructions)
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5. Check 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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Number of 7. Sole Voting Power
Shares 0
Beneficially
Owned By 8. Shared Voting Power
Each 4,593,840
Reporting
Person 9. Sole Dispositive Power
With 0 (See footnote below*)
10. Shared Dispositive Power
13,584,052 (See footnote below*)
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11. Aggregate Amount Beneficially Owned by Each Reporting Person
13,584,052 shares of Common Stock (See footnote below*)
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12. Check if the Aggregate Amount in Row (11) Excludes Certain Shares
(See Instructions) [_]
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13. Percent of Class Represented by Amount in Row (11) 73.3%
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14. Type of Reporting Person (See Instructions) PN
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(*) Includes Non-Voting Stock acquired by the Initial Reporting
Persons. See Item 4 in Amendment No.7 to this Schedule 13D.
SCHEDULE 13D
CUSIP No. 449238203 Page 6 of 11 Pages
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1. Names of Reporting Persons.
I.R.S. Identification Nos. of above persons (entities only).
Apollo Management IV, L.P.
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2. Check the Appropriate Box if a Member of a Group (See Instructions)
(a) [X]
(b)
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3. SEC Use Only
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4. Source of Funds (See Instructions)
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5. Check 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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Number of 7. Sole Voting Power
Shares 0
Beneficially
Owned By 8. Shared Voting Power
Each 4,593,840
Reporting
Person 9. Sole Dispositive Power
With 0 (See footnote below*)
10. Shared Dispositive Power
13,584,052 (See footnote below*)
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11. Aggregate Amount Beneficially Owned by Each Reporting Person
13,584,052 shares of Common Stock (See footnote below*)
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12. Check if the Aggregate Amount in Row (11) Excludes Certain Shares
(See Instructions) [_]
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13. Percent of Class Represented by Amount in Row (11) 73.3%
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14. Type of Reporting Person (See Instructions) PN
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(*) Includes Non-Voting Stock acquired by the Initial Reporting
Persons. See Item 4 in Amendment No.7 to this Schedule 13D.
SCHEDULE 13D
CUSIP No. 449238203 Page 7 of 11 Pages
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1. Names of Reporting Persons.
I.R.S. Identification Nos. of above persons (entities only).
AP/RM Acquisition, LLC
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2. Check the Appropriate Box if a Member of a Group (See Instructions)
(a) [X]
(b)
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3. SEC Use Only
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4. Source of Funds (See Instructions) OO
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5. Check 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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Number of 7. Sole Voting Power
Shares 474,427
Beneficially
Owned By 8. Shared Voting Power
Each 0
Reporting
Person 9. Sole Dispositive Power
With 474,427
10. Shared Dispositive Power
0
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11. Aggregate Amount Beneficially Owned by Each Reporting Person
474,427 shares of Common Stock
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12. Check if the Aggregate Amount in Row (11) Excludes Certain Shares
(See Instructions) [_]
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13. Percent of Class Represented by Amount in Row (11) 2.6%
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14. Type of Reporting Person (See Instructions) OO
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SCHEDULE 13D
CUSIP No. 449238203 Page 8 of 11 Pages
This Amendment No. 8 amends and supplements the following Items of the
Statement on Schedule 13D, as amended (the "Schedule 13D"), of Apollo Investment
Fund IV, L.P. ("AIF IV"), Apollo Overseas Partners IV, L.P. ("Overseas IV"),
Apollo Advisors IV, L.P. ("Advisors IV"), Apollo Management IV, L.P.
("Management IV"), and AIF IV/RRRR LLC ("AIF LLC," and collectively, the
"Initial Reporting Persons") originally filed on June 14, 1999, as further
amended from time to time thereafter, with the Securities and Exchange
Commission with respect to shares of Common Stock of Rare Medium Group, Inc.
(the "Issuer"), par value $0.01 per share (the "Common Stock"). Unless otherwise
indicated, all capitalized terms used but not defined herein have the meanings
set forth in the Schedule 13D.
Item 4. Purpose of the Transaction
Item 4 is hereby amended by supplementing the following text at the end
thereof:
Pursuant to the terms of the Investment Agreement and Stipulation, on
or about January 3, 2003, the Final Judgment became Final (both as defined in
the Investment Agreement) and accordingly: (i) the Apollo Purchasers have
irrevocably waived their rights to elect to receive their payments of dividends
in cash, rather than in additional shares of Preferred Stock respecting any
dividend payment date respecting the Preferred Stock after June 30, 2002 and on
or prior to June 30, 2004; (ii) the Apollo Purchasers have surrendered to the
Issuer for cancellation Warrants to acquire 2,752,452 shares of Common Stock,
representing 20% of the shares of Common Stock which they are entitled pursuant
to their Warrants and (iii) the Issuer and Apollo Purchasers will effect the
Independent Directors Agreement (as described in the Stipulation) pursuant to
which the Apollo Purchasers have agreed to use their best efforts to ensure that
those persons nominated as Independent Directors (defined in the Stipulation) to
the board of directors of the Issuer pursuant to such Independent Directors
Agreement are elected to the board of directors.
Item 5. Interest in Securities of the Issuer.
Items 5(a) and (b) are hereby amended and supplemented as follows:
After giving effect to the Final Judgment discussed above in Item 4 and
the receipt of quarterly dividends, as of the date hereof, the Initial Reporting
Persons may be deemed to beneficially own 1,270,948 shares of Common Stock,
1,118,684 shares of Preferred Stock, 154,301.39 Series 1-A Warrants and
9,810,033 Series 2-A Warrants and 8,990,212 shares of Non-Voting Stock. AP/RM
LLC beneficially owns 474,427 shares of Common Stock acquired pursuant to the
Tender Offer and each of the Initial Reporting Persons may be deemed to have
shared voting and dispositive power with respect to such 474,427 shares of
Common Stock. The shares of Common Stock held by the Reporting Persons represent
approximately 73.3% of the class. Each share of Preferred Stock currently held
by the Initial Reporting Persons is currently convertible into approximately
1.46 shares of Common Stock, or an aggregate of 1,633,115 shares of Common
Stock, which represents approximately 8.8% of the class. The Series 1-A Warrants
currently held by the Initial Reporting Persons are currently exercisable for
212,766 shares of Common Stock, representing approximately 1.1% of the class.
The Series 2-A Warrants currently held by the Initial Reporting Persons are
currently exercisable for 1,002,584 shares of Common Stock, representing
approximately 5.4% of the class. The shares of Non-
Voting Stock held by the Initial Reporting Person are currently exchangeable, in
limited circumstances, for 8,990,212 shares of Common Stock, which represents
approximately 48.5% of the class. For purposes of calculating ownership
percentages in this Schedule 13D, the number of "Outstanding Shares" includes
(i) 6,682,615 (as adjusted for the one for ten reverse stock split) shares of
Common Stock outstanding on November 8, 2002 based on information provided to
the Reporting Persons by the Issuer, (ii) the shares of Common Stock issuable to
the Initial Reporting Persons upon conversion of the shares of Preferred Stock,
Series 1-A Warrants and Series 2-A Warrants currently held by such persons, and
(iii) the Common Stock issuable to the Initial Reporting Persons upon the
exchange of the shares of Non-Voting Stock held by such persons. The amounts set
forth in this Item 5(a) and (b) reflect the one for ten reverse stock split
approved by the stockholders of the Issuer at the Special Meeting.
Item 6. Contracts, Arrangements, Understandings or Relationships With Respect
to Securities of the Issuer
Item 6 is hereby amended by supplementing the following text at the end
thereof:
The information set forth in Item 4 is hereby incorporated by reference
in this Item 6.
Page 10 of 11 Pages
Signature
After reasonable inquiry and to the best of their knowledge and belief,
the undersigned certify that the information set forth in this statement is
true, complete and correct.
January 22, 2003 APOLLO INVESTMENT FUND IV, L.P.
By: APOLLO ADVISORS IV, L.P.
its general partner
By: Apollo Capital Management IV, Inc.
its general partner
By: /s/ Michael D. Weiner
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Name: Michael D. Weiner
Title: Vice President
January 22, 2003 APOLLO OVERSEAS PARTNERS IV, L.P.
By: APOLLO ADVISORS IV, L.P.
its managing general partner
By: Apollo Capital Management IV, Inc.
its general partner
By: /s/ Michael D. Weiner
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Name: Michael D. Weiner
Title: Vice President
January 22, 2003 APOLLO ADVISORS IV, L.P.
in its capacity as general partner
to Apollo Investment Fund IV, L.P. and
Apollo Overseas Partners IV, L.P.
By: Apollo Capital Management IV, Inc.
its general partner
By: /s/ Michael D. Weiner
--------------------------------------
Name: Michael D. Weiner
Title: Vice President
Page 11 of 11 Pages
January 22, 2003 APOLLO MANAGEMENT IV, L.P.
in its capacity as investment manager to
Apollo Investment Fund IV, L.P. and
Apollo Overseas Partners IV, L.P.
By: AIF IV Management, Inc.
its general partner
By: /s/ Michael D. Weiner
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Name: Michael D. Weiner
Title: Vice President
January 22, 2003 AIF IV/RRRR LLC
By: Apollo Management IV, L.P.
its manager
By: AIF IV Management, Inc.
its general partner
By: /s/ Michael D. Weiner
----------------------------------------
Name: Michael D. Weiner
Title: Vice President
January 22, 2003 AP/RM ACQUISITION, LLC
By: Apollo Management IV, L.P.
its manager
By: AIF IV Management, Inc.
its general partner
By: /s/ Michael D. Weiner
---------------------------------------
Name: Michael D. Weiner
Title: Vice President