===============================================================================
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
-----------------------
SCHEDULE 13D
Under the Securities Exchange Act of 1934
(Amendment No. 2)*
-----------------------
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)
-----------------------
with a copy to:
DOUGLAS A. CIFU
PAUL, WEISS, RIFKIND, WHARTON & GARRISON LLP
1285 AVENUE OF THE AMERICAS
NEW YORK, NY 10019
NOVEMBER 1, 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).
===============================================================================
----------------------------- ----------------------------
709668 10 7 Page 2 of 10
----------------------------- ----------------------------
-------------------------------------------------------------------------------
NAME OF REPORTING PERSON
1 S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
Sandler Capital Management
-------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a) [X]
(b) [_]
-------------------------------------------------------------------------------
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)
[_]
-------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
New York
-------------------------------------------------------------------------------
7 SOLE VOTING POWER
-0-
NUMBER OF -----------------------------------------------
SHARES 8 SHARED VOTING POWER
BENEFICIALLY OWNED BY EACH
REPORTING 3,670,525
PERSON -----------------------------------------------
WITH 9 SOLE DISPOSITIVE POWER
-0-
-----------------------------------------------
10 SHARED DISPOSITIVE POWER
3,670,525
-------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
3,670,525
-------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES
[_]
-------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
9.6%
-------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON
PN
-------------------------------------------------------------------------------
----------------------------- ----------------------------
709668 10 7 Page 3 of 10
----------------------------- ----------------------------
-------------------------------------------------------------------------------
NAME OF REPORTING PERSON
1 S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
Sandler Investment Partners, L.P.
-------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a) [X]
(b) [_]
-------------------------------------------------------------------------------
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)
[_]
-------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
New York
-------------------------------------------------------------------------------
7 SOLE VOTING POWER
-0-
NUMBER OF -----------------------------------------------
SHARES 8 SHARED VOTING POWER
BENEFICIALLY OWNED BY EACH
REPORTING 3,670,525
PERSON -----------------------------------------------
WITH 9 SOLE DISPOSITIVE POWER
-0-
-----------------------------------------------
10 SHARED DISPOSITIVE POWER
3,670,525
-------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
3,670,525
-------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES
[_]
-------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
9.6%
-------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON
PN
-------------------------------------------------------------------------------
----------------------------- ----------------------------
709668 10 7 Page 4 of 10
----------------------------- ----------------------------
-------------------------------------------------------------------------------
NAME OF REPORTING PERSON
1 S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
Sandler Capital Partners V, L.P.
-------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a) [X]
(b) [_]
-------------------------------------------------------------------------------
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)
[_]
-------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
Delaware
-------------------------------------------------------------------------------
7 SOLE VOTING POWER
2,618,063
NUMBER OF -----------------------------------------------
SHARES 8 SHARED VOTING POWER
BENEFICIALLY OWNED BY EACH
REPORTING -0-
PERSON -----------------------------------------------
WITH 9 SOLE DISPOSITIVE POWER
2,618,063
-----------------------------------------------
10 SHARED DISPOSITIVE POWER
-0-
-------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
2,618,063
-------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES
[_]
-------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
7.1%
-------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON
PN
-------------------------------------------------------------------------------
----------------------------- ----------------------------
709668 10 7 Page 5 of 10
----------------------------- ----------------------------
-------------------------------------------------------------------------------
NAME OF REPORTING PERSON
1 S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
Sandler Capital Partners V FTE, L.P.
-------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a) [X]
(b) [_]
-------------------------------------------------------------------------------
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)
[_]
-------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
Delaware
-------------------------------------------------------------------------------
7 SOLE VOTING POWER
956,294
NUMBER OF -----------------------------------------------
SHARES 8 SHARED VOTING POWER
BENEFICIALLY OWNED BY EACH
REPORTING -0-
PERSON -----------------------------------------------
WITH 9 SOLE DISPOSITIVE POWER
956,294
-----------------------------------------------
10 SHARED DISPOSITIVE POWER
-0-
-------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
956,294
-------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES
[_]
-------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
2.7%
-------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON
PN
-------------------------------------------------------------------------------
----------------------------- ----------------------------
709668 10 7 Page 6 of 10
----------------------------- ----------------------------
-------------------------------------------------------------------------------
NAME OF REPORTING PERSON
1 S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
Sandler Capital Partners V Germany, L.P.
-------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a) [X]
(b) [_]
-------------------------------------------------------------------------------
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)
[_]
-------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
Delaware
-------------------------------------------------------------------------------
7 SOLE VOTING POWER
96,168
NUMBER OF -----------------------------------------------
SHARES 8 SHARED VOTING POWER
BENEFICIALLY OWNED BY EACH
REPORTING -0-
PERSON -----------------------------------------------
WITH 9 SOLE DISPOSITIVE POWER
96,168
-----------------------------------------------
10 SHARED DISPOSITIVE POWER
-0-
-------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
96,168
-------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES
[_]
-------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
0.3%
-------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON
PN
-------------------------------------------------------------------------------
----------------------------- ----------------------------
709668 10 7 Page 7 of 10
----------------------------- ----------------------------
This Amendment No. 2 to Schedule 13D (this "Amendment") is filed by
the undersigned to amend the Statement on Schedule 13D, filed by the
undersigned on March 28, 2002 (the "Original Filing"), as amended by Amendment
No. 1 to the Original Filing, filed by the undersigned on July 26,2006 (the
"First Amendment"). Unless otherwise indicated, all capitalized terms shall
have the same meaning as provided in the Original Filing or the First
Amendment, as applicable. Any reference to "this Schedule 13D" in the Original
Filing, the First Amendment or in this Amendment shall refer to the Original
Filing as amended by the First Amendment and this Amendment.
ITEM 4. PURPOSE OF TRANSACTIONS.
Item 4 is hereby amended by adding the following:
On November 1, 2006, Penton Media, Inc. (the "Company") entered into
an Agreement and Plan of Merger (the "Prism Merger Agreement") with Prism
Business Media Holdings, Inc., a Delaware corporation ( "Parent"), and Prism
Acquisition Co., a Delaware corporation and a direct wholly-owned subsidiary of
Parent ("Merger Subsidiary"). Pursuant to the Prism Merger Agreement, (i)
Merger Subsidiary will merge with and into the Company (the "Prism Merger"),
(ii) the separate corporate existence of Merger Sub shall cease and the Company
shall continue its corporate existence under Delaware law as the surviving
corporation (the "Surviving Corporation") and shall become a wholly-owned
subsidiary of Parent, (iii) each share of Common Stock, par value $0.01 per
share, of the Penton ("Company Common Stock") issued and outstanding, other
than any shares of Company Common Stock owned by the Company or any of its
wholly-owned subsidiaries, by Parent or any of its wholly-owned subsidiaries or
by dissenting stockholders that properly exercise appraisal rights, or Company
Common Stock to be cancelled, shall be converted into the right to receive the
Common Stock Per Share Merger Consideration, as defined in the Prism Merger
Agreement, (iv) each share of Series C Preferred Stock, par value $0.01 per
share, of the Company (the "Series C Preferred Stock") issued and outstanding,
other than any shares of Series C Preferred Stock owned by the Company or any
of its wholly-owned subsidiaries, by Parent or any of its wholly-owned
subsidiaries or by dissenting stockholders that properly exercise appraisal
rights, or Series C Preferred Stock to be cancelled, shall be converted into
the right to receive an amount in cash, without interest, equal to the Series C
Preferred Stock Per Share Merger Consideration, as defined in the Prism Merger
Agreement, (v) each share of Series M Preferred Stock, par value $0.01 per
share, of the Company (the "Series M Preferred Stock") issued and outstanding,
other than any shares of Series M Preferred Stock owned by the Company or any
of its wholly-owned subsidiaries, by Parent or any of its wholly-owned
subsidiaries or by dissenting stockholders that properly exercise appraisal
rights, or Series M Preferred Stock to be cancelled, shall be converted into
the right to receive an amount in cash, without interest, equal to the Series M
Preferred Stock Per Share Merger Consideration, as defined in the Prism Merger
Agreement.
As a condition to the willingness of Parent and Merger Subsidiary to
enter into the Prism Merger Agreement, Parent and Merger Subsidiary required
ABRY Mezzanine Partners, L.P., ABACUS Fund Partners, LP, ABACUS Fund, Ltd.,
Sandler Capital Partners V Germany, L.P., Sandler Capital Partners V FTE, L.P.
and Sandler Capital Partners V, L.P. (each individually a "Stockholder", and
collectively the "Stockholders") to enter into a voting agreement (the "Voting
Agreement").
Pursuant to the Voting Agreement, the Stockholders agreed to vote (or
cause to be voted) all shares of Company capital stock held by them and any
shares of Company capital stock that may be acquired after the date of the
Voting Agreement (the "Covered Shares") in favor of the Prism Merger, the Prism
Merger Agreement and the transactions contemplated by the Prism Merger
Agreement and against any extraordinary corporate transaction, other than the
Prism Merger, such as a merger, consolidation, business combination, tender or
----------------------------- ----------------------------
709668 10 7 Page 8 of 10
----------------------------- ----------------------------
exchange offer, reorganization, recapitalization, liquidation, sale or transfer
of all or substantially all of the assets or securities of the Company and any
of is subsidiaries, other than pursuant to the Prism Merger, or any other
acquisition proposal.
As part of the Voting Agreement, the Stockholders entered into an
irrevocable proxy appointing Parent and certain of its officers or designees as
the sole and exclusive attorneys and proxies of each Stockholder to vote and
exercise all voting and related rights with respect to all of the shares of
Company capital stock that now are or hereafter may be beneficially owned by
the Stockholders.
Pursuant to the Voting Agreement, the Stockholders are prohibited from
transferring any shares of Company capital stock.
The Voting Agreement and the irrevocable proxies will expire upon the
earliest to occur of (i) the effective time of the Prism Merger, (ii) the date
on which the Prism Merger Agreement is terminated pursuant to its terms (iii)
April 30, 2007 and (iv) written notice of termination of the Voting Agreement
by Parent to the Stockholders.
ITEM 5. INTEREST IN SECURITIES OF THE ISSUER.
Item 5 is hereby amended by adding the following thereto:
By virtue of the Voting Agreement, the Reporting Persons may be deemed
to share dispositive power and voting power of the Company Common Stock held by
them with Parent and Merger Sub.
The numbers of shares and percentages reported on the cover pages of
this Second Amendment have not been updated since September 30, 2006 to give
effect to the accrual of additional dividends on the Series C Preferred Stock,
the numbers do reflect the accrual of additional dividends on the Series C
Preferred Stock up through September 30, 2006. As dividends on the Series C
Preferred Stock accrue but are not paid, the actual number of shares of Company
Common Stock into which the Series C Preferred Stock is convertible and the
voting power of the Company represented by such shares, will increase
accordingly.
Each of the Reporting Persons expressly disclaims beneficial ownership
of any Company Common Stock held by any other person to the extent that the
Reporting Person does not hold a pecuniary interest therein.
ITEM 6. CONTRACTS, ARRANGEMENTS, UNDERSTANDINGS OR RELATIONSHIPS WITH
RESPECT TO SECURITIES OF THE ISSUER.
The responses to Item 4 of this Amendment and the Exhibit to this
Amendment are incorporated herein by this reference.
ITEM 7. MATERIAL TO BE FILED AS EXHIBITS.
Item 7 is hereby amended by adding the following thereto:
Exhibit 10: Voting Agreement, dated as of November 1, 2006, by and
among ABRY Mezzanine Partners, L.P., ABACUS Fund
Partners, LP, ABACUS Fund, Ltd., Sandler Capital
Partners V Germany, L.P., Sandler Capital Partners V
FTE, L.P. and Sandler Capital Partners V, L.P., Prism
Business Media Holdings, Inc., a Delaware corporation
and Prism Acquisition Co., a Delaware corporation and
wholly-owned subsidiary of Parent (incorporated by
reference to Exhibit 99.1 to the Current Report on
Form 8-K of Penton Media, Inc. filed with the
Securities and Exchange Commission on November 2,
2006).
----------------------------- ----------------------------
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 November 3, 2006
SANDLER CAPITAL MANAGEMENT
By: MJDM Corp., a general partner
By: /s/ Moira Mitchell
------------------------------------------
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
----------------------------------
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
----------------------------------
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
----------------------------------
Name: Moira Mitchell
Title: President
----------------------------- ----------------------------
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
--------------------------------------
Name: Moira Mitchell
Title: President