SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
Current Report Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
November 20, 2001
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Date of Report (Date of earliest event reported)
Arch Capital Group Ltd.
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(Exact name of registrant as specified in its charter)
Bermuda 0-26456 N/A
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(State or other jurisdiction of (Commission File Number) (I.R.S. Employer
incorporation or organization) Identification No.)
20 Horseneck Lane, Greenwich, Connecticut 06830
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(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code:
(203) 862-4300
N/A
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(Former name or former address, if changed since last report)
ITEM 5. Other Events.
On November 20, 2001, the entities listed in the table below consummated
the previously announced investment in Arch Capital Group Ltd. The table sets
forth the purchase prices paid by each of the entities and the numbers of Series
A Convertible Preference Shares and Class A Warrants of Arch Capital Group Ltd.
purchased by each.
Number of Number of
Total Preference Class A
Purchase Shares Warrants
Price Purchased Purchased
----- --------- ---------
Warburg Pincus (Bermuda) Private Equity VIII, L.P........ $202,500,000.00 9,469,656 1,001,959
Warburg Pincus (Bermuda) International Partners, L.P..... 194,400,000.00 9,090,870 961,881
Warburg Pincus Netherlands International
Partners I, C.V....................................... 4,860,000.00 227,271 24,047
Warburg Pincus Netherlands International
Partners II, C.V...................................... 3,240,000.00 151,514 16,031
HFCP IV (Bermuda), L.P................................... 181,322,595.00 8,479,322 897,175
H&F International Partners IV-A (Bermuda), L.P........... 29,759,927.00 1,391,685 147,251
H&F International Partners IV-B (Bermuda), L.P........... 9,830,812.00 459,725 48,642
H&F Executive Fund IV (Bermuda), L.P..................... 4,086,666.00 191,107 20,221
Insurance Private Equity Investors, L.L.C................ 50,000,000.00 2,338,186 247,397
Orbital Holdings, Ltd.................................... 10,000,000.00 467,637 49,479
Trident II, L.P.......................................... 33,139,159.08 1,549,710 163,971
Marsh & McLennan Employees' Securities Company, L.P......
932,997.10 43,630 4,616
Marsh & McLennan Capital Professionals Fund, L.P......... 927,843.82 43,389 4,591
Farallon Capital Partners, L.P........................... 17,363,741.18 811,993 85,915
Farallon Capital Institutional Partners II, L.P.......... 3,971,025.66 185,700 19,648
Farallon Capital Institutional Partners III, L.P......... 3,156,291.80 147,600 15,617
RR Capital Partners, L.P................................. 508,941.36 23,800 2,518
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Investors' total.................................... $750,000,000.00 35,072,795 3,710,959
=============== ========== =========
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Sound View Partners LP (affiliated with Robert Clements).
$2,000,000.00 93,527 9,896
Otter Capital LLC (affiliated with John M. Pasquesi)..... 7,500,000.00 350,728 37,110
Peter A. Appel........................................... 1,000,000.00 46,763 4,948
Paul B. Ingrey........................................... 2,000,000.00 93,527 9,896
Dwight R. Evans.......................................... 400,000.00 18,705 1,979
Marc Grandisson.......................................... 250,000.00 11,690 1,237
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Management purchasers' total........................ $13,150,000.00 614,940 65,066
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Total.................................. $763,150,000.00 35,687,735 3,776,025
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ITEM 7. Financial Statements, Pro Forma Financial Information and Exhibits
EXHIBIT NO. DESCRIPTION
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3.1 Certificate of Designations of Series A Convertible Preference Shares.
3.2 Form of Amended and Restated Bye-law 45 and Bye-law 75.
4.1 Form of Class A Warrant Certificate.
4.2 Shareholders Agreement, dated November 20, 2001, by and among Arch Capital
Group Ltd. ("ACGL") and the shareholders party thereto.
10.1 Amendment No. 1, dated November 20, 2001, between ACGL and the parties
thereto, to the Subscription Agreement dated October 24, 2001.
10.2 Amendment No. 2, dated January 4, 2002 between ACGL and the parties
thereto, to the Subscription Agreement dated October 24, 2001.
10.3 Agreement, dated November 20, 2001, among ACGL, Warburg Pincus Private
Equity VIII, L.P., Warburg Pincus International Partners, L.P., Warburg
Pincus Netherlands International Partners I, C.V., Warburg Pincus
Netherlands International Partners II, C.V. and HFCP IV (Bermuda), L.P.
(collectively, the "Original Parties") and Orbital Holdings, Ltd.
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10.4 Agreement, dated November 20, 2001, among ACGL, the Original Parties and
Insurance Private Equity Investors, L.L.C.
10.5 Agreement, dated November 20, 2001, among ACGL, the Original Parties and
Farallon Capital Partners, L.P., Farallon Capital Institutional Partners
II, L.P., Farallon Capital Institutional Partners III, L.P. and RR Capital
Partners, L.P.
10.6 Restricted Share Agreement, dated November 19, 2001, between ACGL and
Robert Clements.
10.7 Retention Agreement, dated January 4, 2002, among ACGL, Arch Capital
(U.S.) Inc. and Robert Clements, including Form of Promissory Note.
10.8 Employment Agreement, dated as of October 23, 2001, between ACGL and John
M. Pasquesi.
10.9 Employee Share Option Agreement, dated as of October 23, 2001, between ACGL
and John M. Pasquesi.
10.10 Share Option Agreement, dated as of October 23, 2001, between ACGL and
John M. Pasquesi.
10.11 Share Option Agreement, dated as of October 23, 2001, between ACGL and
Peter A. Appel.
10.12 Employment Agreement, dated as of October 23, 2001, among ACGL, Arch
Reinsurance Ltd. ("Arch Re Bermuda") and Paul Ingrey.
10.13 Employment Agreement, dated as of October 23, 2001, among ACGL, Arch Re
Bermuda and Dwight Evans.
10.14 Employment Agreement, dated as of October 23, 2001, among ACGL, Arch Re
Bermuda and Marc Grandisson.
10.15 Employment Agreement, dated as of December 20, 2001, among ACGL, Arch
Capital Group (U.S.) Inc. and Constantine Iordanou.
10.16 Share Option Agreement, dated as of January 1, 2002, between ACGL and
Constantine Iordanou.
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10.17 Restricted Share Agreement, dated as of January 1, 2002, between ACGL and
Constantine Iordanou.
10.18 Restricted Share Agreement, dated as of January 1, 2002, between ACGL and
Constantine Iordanou.
10.19 Restricted Share Agreement, dated as of October 23, 2001, between ACGL and
Robert Clements.
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, as
amended, the registrant has duly caused this report to be signed on its behalf
by the undersigned.
ARCH CAPITAL GROUP LTD.
Date: January 4, 2002 By: /s/ Louis T. Petrillo
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Name: Louis T. Petrillo
Title: Senior Vice President, General
Counsel and Secretary