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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
SCHEDULE 13D
(Rule 13d-101)
INFORMATION TO BE INCLUDED IN STATEMENTS FILED PURSUANT
TO RULE 13d-1(a) AND AMENDMENTS THERETO FILED PURSUANT TO
RULE 13d-2(a)
(AMENDMENT NO. 7)
APPLICA INCORPORATED
(Name of Issuer)
COMMON STOCK, PAR VALUE $0.01 PER SHARE
(Title of Class of Securities)
03815A106
(CUSIP Number)
WILLIAM R. LUCAS, JR.
ONE RIVERCHASE PARKWAY SOUTH
BIRMINGHAM, ALABAMA 35244
(Name, Address and Telephone Number of
Person Authorized to Receive Notices
and Communications)
SEPTEMBER 14, 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 that is the subject of this Schedule 13D, and is filing this
schedule because of Rule 13d-1(e), 13d-1(f) or 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 Rule 13d-7 for other
parties to whom copies are to be sent.
(1) 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 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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CUSIP NO. 03815A106 Page 2 of 36
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SCHEDULE 13D
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NAME OF REPORTING PERSON
1 I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)
Harbinger Capital Partners Master Fund I, Ltd.
--------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a) [_]
(b) [X]
--------------------------------------------------------------------------------
3 SEC USE ONLY
--------------------------------------------------------------------------------
4 SOURCE OF FUNDS
WC
--------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO
ITEMS 2(d) or 2(e)
[_]
--------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
Cayman Islands
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7 SOLE VOTING POWER
NUMBER OF -0-
------------------------------------------------
SHARES 8 SHARED VOTING POWER
BENEFICIALLY OWNED 7,984,300
------------------------------------------------
BY EACH REPORTING 9 SOLE DISPOSITIVE POWER
PERSON -0-
------------------------------------------------
WITH 10 SHARED DISPOSITIVE POWER
7,984,300
--------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
7,984,300
--------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES
[_]
--------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
32.60%
--------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON
OO
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CUSIP NO. 03815A106 Page 3 of 36
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SCHEDULE 13D
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NAME OF REPORTING PERSON
1 I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)
Harbinger Capital Partners Offshore Manager, L.L.C.
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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
AF
--------------------------------------------------------------------------------
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
NUMBER OF -0-
------------------------------------------------
SHARES 8 SHARED VOTING POWER
BENEFICIALLY OWNED 7,984,300
------------------------------------------------
BY EACH REPORTING 9 SOLE DISPOSITIVE POWER
PERSON -0-
------------------------------------------------
WITH 10 SHARED DISPOSITIVE POWER
7,984,300
--------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
7,984,300
--------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES
[_]
--------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
32.60%
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14 TYPE OF REPORTING PERSON
OO
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CUSIP NO. 03815A106 Page 4 of 36
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SCHEDULE 13D
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NAME OF REPORTING PERSON
1 I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)
HMC Investors, L.L.C.
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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
WC
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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
NUMBER OF -0-
------------------------------------------------
SHARES 8 SHARED VOTING POWER
BENEFICIALLY OWNED 7,984,300
------------------------------------------------
BY EACH REPORTING 9 SOLE DISPOSITIVE POWER
PERSON -0-
------------------------------------------------
WITH 10 SHARED DISPOSITIVE POWER
7,984,300
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11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
7,984,300
--------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES
[_]
--------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
32.60%
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14 TYPE OF REPORTING PERSON
OO
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CUSIP NO. 03815A106 Page 5 of 36
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SCHEDULE 13D
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NAME OF REPORTING PERSON
1 I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)
Harbinger Capital Partners Special Situations Fund, L.P.
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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
WC
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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
NUMBER OF -0-
------------------------------------------------
SHARES 8 SHARED VOTING POWER
BENEFICIALLY OWNED 1,846,500
------------------------------------------------
BY EACH REPORTING 9 SOLE DISPOSITIVE POWER
PERSON -0-
------------------------------------------------
WITH 10 SHARED DISPOSITIVE POWER
1,846,500
--------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
1,846,500
--------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES
[_]
--------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
7.54%
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14 TYPE OF REPORTING PERSON
PN
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CUSIP NO. 03815A106 Page 6 of 36
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SCHEDULE 13D
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NAME OF REPORTING PERSON
1 I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)
Harbert Management Corporation
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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
AF
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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
Alabama
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7 SOLE VOTING POWER
NUMBER OF -0-
------------------------------------------------
SHARES 8 SHARED VOTING POWER
BENEFICIALLY OWNED 9,830,800
------------------------------------------------
BY EACH REPORTING 9 SOLE DISPOSITIVE POWER
PERSON -0-
------------------------------------------------
WITH 10 SHARED DISPOSITIVE POWER
9,830,800
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11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
9,830,800
--------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES
[_]
--------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
40.14%
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14 TYPE OF REPORTING PERSON
CO
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CUSIP NO. 03815A106 Page 7 of 36
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SCHEDULE 13D
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NAME OF REPORTING PERSON
1 I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)
Philip Falcone
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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
AF
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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
U.S.A
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7 SOLE VOTING POWER
NUMBER OF -0-
------------------------------------------------
SHARES 8 SHARED VOTING POWER
BENEFICIALLY OWNED 9,830,800
------------------------------------------------
BY EACH REPORTING 9 SOLE DISPOSITIVE POWER
PERSON -0-
------------------------------------------------
WITH 10 SHARED DISPOSITIVE POWER
9,830,800
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11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
9,830,800
--------------------------------------------------------------------------------
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)
40.14%
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14 TYPE OF REPORTING PERSON
IN
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CUSIP NO. 03815A106 Page 8 of 36
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SCHEDULE 13D
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NAME OF REPORTING PERSON
1 I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)
Raymond J. Harbert
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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
AF
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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
U.S.A.
--------------------------------------------------------------------------------
7 SOLE VOTING POWER
NUMBER OF -0-
------------------------------------------------
SHARES 8 SHARED VOTING POWER
BENEFICIALLY OWNED 9,830,800
------------------------------------------------
BY EACH REPORTING 9 SOLE DISPOSITIVE POWER
PERSON -0-
------------------------------------------------
WITH 10 SHARED DISPOSITIVE POWER
9,830,800
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11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
9,830,800
--------------------------------------------------------------------------------
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)
40.14%
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14 TYPE OF REPORTING PERSON
IN
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CUSIP NO. 03815A106 Page 9 of 36
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SCHEDULE 13D
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NAME OF REPORTING PERSON
1 I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)
Michael D. Luce
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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
AF
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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
U.S.A.
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7 SOLE VOTING POWER
NUMBER OF -0-
------------------------------------------------
SHARES 8 SHARED VOTING POWER
BENEFICIALLY OWNED 9,830,800
------------------------------------------------
BY EACH REPORTING 9 SOLE DISPOSITIVE POWER
PERSON -0-
------------------------------------------------
WITH 10 SHARED DISPOSITIVE POWER
9,830,800
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11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
9,830,800
--------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES
[_]
--------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
40.14%
--------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON
IN
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CUSIP NO. 03815A106 Page 10 of 36
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SCHEDULE 13D
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NAME OF REPORTING PERSON
1 I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)
Harbinger Capital Partners Special Situations GP, LLC
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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
AF
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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
NUMBER OF -0-
------------------------------------------------
SHARES 8 SHARED VOTING POWER
BENEFICIALLY OWNED 1,846,500
------------------------------------------------
BY EACH REPORTING 9 SOLE DISPOSITIVE POWER
PERSON -0-
------------------------------------------------
WITH 10 SHARED DISPOSITIVE POWER
1,846,500
--------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
1,846,500
--------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES
[_]
--------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
7.54%
--------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON
OO
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CUSIP NO. 03815A106 Page 11 of 36
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SCHEDULE 13D
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NAME OF REPORTING PERSON
1 I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)
HMC - New York, Inc.
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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
AF
--------------------------------------------------------------------------------
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
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7 SOLE VOTING POWER
NUMBER OF -0-
------------------------------------------------
SHARES 8 SHARED VOTING POWER
BENEFICIALLY OWNED 1,846,500
------------------------------------------------
BY EACH REPORTING 9 SOLE DISPOSITIVE POWER
PERSON -0-
------------------------------------------------
WITH 10 SHARED DISPOSITIVE POWER
1,846,500
--------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
1,846,500
--------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES
[_]
--------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
7.54%
--------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON
CO
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CUSIP NO. 03815A106 Page 12 of 36
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This Amendment No. 7 amends and supplements the Statement on Schedule
13D filed on May 17, 2006, as amended June 6, 2006, June 21, 2006, August 3,
2006, August 8, 2006, August 11, 2006 and August 17, 2006 (as amended, the
"Schedule 13D") by Harbinger Capital Partners Master Fund I, Ltd. (the "Master
Fund"), Harbinger Capital Partners Offshore Manager, L.L.C. ("Harbinger
Management"), the investment manager of the Master Fund, HMC Investors, L.L.C.,
its managing member ("HMC Investors"), Harbinger Capital Partners Special
Situations Fund, L.P. (the "Special Fund"), Harbinger Capital Partners Special
Situations GP, LLC, the general partner of the Special Fund ("HCPSS"), HMC -
New York, Inc., the managing member of HCPSS ("HMCNY"), Harbert Management
Corporation ("HMC"), the managing member of HMC Investors and the parent of
HMCNY, Philip Falcone, a shareholder of HMC and the portfolio manager of the
Master Fund and the Special Fund, Raymond J. Harbert, a shareholder of HMC, and
Michael D. Luce, a shareholder of HMC (each of the Master Fund, Harbinger
Management, HMC Investors, HMC, Special Fund, HCPSS, HMCNY, Philip Falcone,
Raymond J. Harbert and Michael D. Luce may be referred to herein as a
"Reporting Person" and collectively may be referred to as "Reporting Persons")
relating to the Common Stock, par value $0.10 per share, of Applica
Incorporated, a Florida corporation. Captitalized terms used herein and not
otherwise defined in this Amendment No. 7 shall have the meanings set forth in
the Schedule 13D.
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CUSIP NO. 03815A106 Page 13 of 36
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SCHEDULE 13D
Item 3. SOURCE AND AMOUNT OF FUNDS OR OTHER CONSIDERATION.
Item 3 of the Schedule 13D is hereby amended and restated as follows:
As of the date hereof the Master Fund may be deemed to beneficially own
7,984,300 Shares. As of the date hereof Harbinger Management may be deemed to
beneficially own 7,984,300 Shares. As of the date hereof HMC Investors may be
deemed to beneficially own 7,984,300 Shares. As of the date hereof the Special
Fund may be deemed to beneficially own 1,846,500 Shares. As of the date hereof
HCPSS may be deemed to beneficially own 1,846,500 Shares. As of the date hereof
HMCNY may be deemed to beneficially own 1,846,500 Shares. As of the date hereof
HMC may be deemed to beneficially own 9,830,800 Shares. As of the date hereof
Philip Falcone may be deemed to beneficially own 9,830,800 Shares. As of the
date hereof Raymond J. Harbert may be deemed to beneficially own 9,830,800
Shares. As of the date hereof Michael D. Luce may be deemed to beneficially own
9,830,800 Shares. No borrowed funds were used to purchase the Shares, other
than any borrowed funds used for working capital purposes in the ordinary
course of business.
Item 4. PURPOSE OF THE TRANSACTION.
Item 4 of the Schedule 13D is amended to add the following
information:
The Reporting Persons have acquired their Shares of the Issuer in
order to acquire control of the Issuer. The Reporting Persons evaluate their
ownership of the Shares on a continual basis including, without limitation, for
possible synergies with their other current investments.
On September 14, 2006, the Master Fund and the Special Fund, together,
sent a letter to the Issuer, a copy of which is incorporated by reference into
Item 4 and included as Exhibit F, pursuant to which the Master Fund and the
Special Fund offered to acquire all of the Shares of the Issuer at a price per
Share of $6.00 and in accordance with the terms of the letter.
On September 14, 2006, the Master Fund and the Special Fund, together,
issued a press release in respect of such offer and letter, a copy of which is
incorporated by reference into Item 4 and included as Exhibit G.
On September 14, 2006, the Master Fund, Harbinger Management, HMC
Investors, the Special Fund, HCPSS, HMCNY, HMC, Philip Falcone, Raymond J.
Harbert and Michael D. Luce (collectively, the "Acquiring Person") filed an
Acquiring Person Statement, which is incorporated by reference into Item 4 and
attached as Exhibit H, with the Issuer pursuant to the Florida Control Shares
Act seeking a vote of the Issuer's shareholders (other than the Reporting
Persons and the
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CUSIP NO. 03815A106 Page 14 of 36
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Issuer's management) to confirm that the Shares beneficially owned and which
may be acquired by the Acquiring Person have full voting rights. The Acquiring
Person reserved the right to challenge the constitutionality and validity of
the Florida Control Shares Act and/or the validity of any purported application
thereof to the Acquiring Person.
Item 5. INTEREST IN SECURITIES OF THE ISSUER.
Item 5 of the Schedule 13D is hereby amended and restated as follows:
(a, b) As of the date hereof, the Master Fund may be deemed to be the
beneficial owner of 7,984,300 Shares, constituting 32.60% of the Shares of the
Issuer, based upon 24,492,069 Shares outstanding as of August 1, 2006.
The Master Fund has the sole power to vote or direct the vote of 0
Shares; has the shared power to vote or direct the vote of 7,984,300 Shares;
has sole power to dispose or direct the disposition of 0 Shares; and has shared
power to dispose or direct the disposition of 7,984,300 Shares.
(a, b) As of the date hereof, Harbinger Management may be deemed to be
the beneficial owner of 7,984,300 Shares, constituting 32.60% of the Shares of
the Issuer, based upon 24,492,069 Shares outstanding as of August 1, 2006.
Harbinger Management has the sole power to vote or direct the vote of
0 Shares; has the shared power to vote or direct the vote of 7,984,300 Shares;
has sole power to dispose or direct the disposition of 0 Shares; and has shared
power to dispose or direct the disposition of 7,984,300 Shares.
Harbinger Management specifically disclaims beneficial ownership in
the Shares reported herein except to the extent of its pecuniary interest
therein.
(a, b) As of the date hereof, HMC Investors may be deemed to be the
beneficial owner of 7,984,300 Shares, constituting 32.60% of the Shares of the
Issuer, based upon 24,492,069 Shares outstanding as of August 1, 2006.
HMC Investors has the sole power to vote or direct the vote of 0
Shares; has the shared power to vote or direct the vote of 7,984,300 Shares;
has sole power to dispose or direct the disposition of 0 Shares; and has shared
power to dispose or direct the disposition of 7,984,300 Shares.
HMC Investors specifically disclaims beneficial ownership in the
Shares reported herein except to the extent of its pecuniary interest therein.
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CUSIP NO. 03815A106 Page 15 of 36
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(a, b) As of the date hereof, the Special Fund may be deemed to be the
beneficial owner of 1,846,500 Shares, constituting 7.54% of the Shares of the
Issuer, based upon 24,492,069 Shares outstanding as of August 1, 2006.
The Special Fund has the sole power to vote or direct the vote of 0
Shares; has the shared power to vote or direct the vote of 1,846,500 Shares;
has sole power to dispose or direct the disposition of 0 Shares; and has shared
power to dispose or direct the disposition of 1,846,500 Shares.
The Special Fund specifically disclaims beneficial ownership in the
Shares reported herein except to the extent of its pecuniary interest therein.
(a, b) As of the date hereof, HCPSS may be deemed to be the beneficial
owner of 1,846,500 Shares, constituting 7.54% of the Shares of the Issuer,
based upon 24,492,069 Shares outstanding as of August 1, 2006.
HCPSS has the sole power to vote or direct the vote of 0 Shares; has
the shared power to vote or direct the vote of 1,846,500 Shares; has sole power
to dispose or direct the disposition of 0 Shares; and has shared power to
dispose or direct the disposition of 1,846,500 Shares.
HCPSS specifically disclaims beneficial ownership in the Shares
reported herein except to the extent of its pecuniary interest therein.
(a, b) As of the date hereof, HMCNY may be deemed to be the beneficial
owner of 1,846,500 Shares, constituting 7.54% of the Shares of the Issuer,
based upon 24,492,069 Shares outstanding as of August 1, 2006.
HMCNY has the sole power to vote or direct the vote of 0 Shares; has
the shared power to vote or direct the vote of 1,846,500 Shares; has sole power
to dispose or direct the disposition of 0 Shares; and has shared power to
dispose or direct the disposition of 1,846,500 Shares.
HMCNY specifically disclaims beneficial ownership in the Shares
reported herein except to the extent of its pecuniary interest therein.
(a, b) As of the date hereof, HMC may be deemed to be the beneficial
owner of 9,830,800 Shares, constituting 40.14% of the Shares of the Issuer,
based upon 24,492,069 Shares outstanding as of August 1, 2006.
HMC as the sole power to vote or direct the vote of 0 Shares; has the
shared power to vote or direct the vote of 9,830,800 Shares; has sole power to
dispose or direct the disposition of 0 Shares; and has shared power to dispose
or direct the disposition of 9,830,800 Shares.
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CUSIP NO. 03815A106 Page 16 of 36
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HMC specifically disclaims beneficial ownership in the Shares reported
herein except to the extent of its pecuniary interest therein.
(a, b) As of the date hereof, Philip Falcone may be deemed to be the
beneficial owner of 9,830,800 Shares, constituting 40.14% of the Shares of the
Issuer, based upon 24,492,069 Shares outstanding as of August 1, 2006.
Mr. Falcone has the sole power to vote or direct the vote of 0 Shares;
has the shared power to vote or direct the vote of 9,830,800 Shares; has sole
power to dispose or direct the disposition of 0 Shares; and has shared power to
dispose or direct the disposition of 9,830,800 Shares.
Mr. Falcone specifically disclaims beneficial ownership in the Shares
reported herein except to the extent of his pecuniary interest therein.
(a, b) As of the date hereof, Raymond J. Harbert may be deemed to be
the beneficial owner of 9,830,800 Shares, constituting 40.14% of the Shares of
the Issuer, based upon 24,492,069 Shares outstanding as of August 1, 2006.
Mr. Harbert has the sole power to vote or direct the vote of 0 Shares;
has the shared power to vote or direct the vote of 9,830,800 Shares; has sole
power to dispose or direct the disposition of 0 Shares; and has shared power to
dispose or direct the disposition of 9,830,800 Shares.
Mr. Harbert specifically disclaims beneficial ownership in the Shares
reported herein except to the extent of his pecuniary interest therein.
(a, b) As of the date hereof, Michael D. Luce may be deemed to be the
beneficial owner of 9,830,800 Shares, constituting 40.14% of the Shares of the
Issuer, based upon 24,492,069 Shares outstanding as of August 1, 2006.
Mr. Luce has the sole power to vote or direct the vote of 0 Shares;
has the shared power to vote or direct the vote of 9,830,800 Shares; has sole
power to dispose or direct the disposition of 0 Shares; and has shared power to
dispose or direct the disposition of 9,830,800 Shares.
Mr. Luce specifically disclaims beneficial ownership in the Shares
reported herein except to the extent of his pecuniary interest therein.
(c) The trading dates, number of Shares purchased and sold and price
per share for all transactions in the Shares since the previous amendment to
Schedule 13D by the Reporting Persons are set forth in Exhibit B.
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CUSIP NO. 03815A106 Page 17 of 36
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Item 7. MATERIAL TO BE FILED AS EXHIBITS.
Item 7 of the Schedule 13D is hereby amended to add the following:
Exhibit A: Agreement between the Reporting Persons to file jointly
Exhibit B: Schedule of Transactions in the Shares of the Issuer
Exhibit F: Letter, dated September 14, 2006, from the Master Fund
and the Special Fund to the Issuer
Exhibit G: Press Release, dated September 14, 2006, from the
Master Fund and the Special Fund
Exhibit H: Acquiring Person Statement
--------------------------- ---------------------------
CUSIP NO. 03815A106 Page 18 of 36
--------------------------- ---------------------------
SIGNATURE
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.
HARBINGER CAPITAL PARTNERS MASTER FUND I, LTD.
By: Harbinger Capital Partners Offshore
Manager, L.L.C.
By: HMC Investors, L.L.C.,
Managing Member
By: /s/ Joel B. Piassick
---------------------------------------
Name: Joel B. Piassick
Title: Executive Vice President
HARBINGER CAPITAL PARTNERS OFFSHORE MANAGER,
L.L.C.
By: HMC Investors, L.L.C.,
Managing Member
By: /s/ Joel B. Piassick
---------------------------------------
Name: Joel B. Piassick
Title: Executive Vice President
HMC INVESTORS, L.L.C.
By: /s/ Joel B. Piassick
---------------------------------------
Name: Joel B. Piassick
Title: Executive Vice President
HARBINGER CAPITAL PARTNERS SPECIAL SITUATIONS
FUND, L.P.
By: Harbinger Capital Partners Special
Situations GP, LLC
By: HMC - New York, Inc.
By: /s/ William R. Lucas, Jr.
---------------------------------------
Name: William R. Lucas, Jr.
Title: Senior Vice President
& General Counsel
--------------------------- ---------------------------
CUSIP NO. 03815A106 Page 19 of 36
--------------------------- ---------------------------
HARBINGER CAPITAL PARTNERS SPECIAL SITUATIONS
GP, LLC
By: HMC - New York, Inc.
By: /s/ William R. Lucas, Jr.
---------------------------------------
Name: William R. Lucas, Jr.
Title: Senior Vice President
& General Counsel
HMC - NEW YORK, INC.
By: /s/ William R. Lucas, Jr.
---------------------------------------
Name: William R. Lucas, Jr.
Title: Senior Vice President
& General Counsel
HARBERT MANAGEMENT CORPORATION
By: /s/ William R. Lucas, Jr.
---------------------------------------
Name: William R. Lucas, Jr.
Title: Senior Vice President
& General Counsel
/s/ Philip Falcone
--------------------------------------------
Philip Falcone
/s/ Raymond J. Harbert
--------------------------------------------
Raymond J. Harbert
/s/ Michael D. Luce
-------------------------------------------
Michael D. Luce
September 14, 2006
Attention: Intentional misstatements or omissions of fact constitute federal
criminal violations (see 18 U.S.C. 1001).
--------------------------- ---------------------------
CUSIP NO. 03815A106 Page 20 of 36
--------------------------- ---------------------------
EXHIBIT A
AGREEMENT
The undersigned agree that this Schedule 13D, Amendment No. 7, dated
September 14, 2006 relating to the Common Stock, $0.10 par value of Applica
Incorporated shall be filed on behalf of the undersigned.
HARBINGER CAPITAL PARTNERS MASTER FUND I, LTD.
By: Harbinger Capital Partners Offshore
Manager, L.L.C.
By: HMC Investors, L.L.C.,
Managing Member
By: /s/ Joel B. Piassick
---------------------------------------
Name: Joel B. Piassick
Title: Executive Vice President
HARBINGER CAPITAL PARTNERS OFFSHORE MANAGER,
L.L.C.
By: HMC Investors, L.L.C.,
Managing Member
By: /s/ Joel B. Piassick
---------------------------------------
Name: Joel B. Piassick
Title: Executive Vice President
HMC INVESTORS, L.L.C.
By: /s/ Joel B. Piassick
---------------------------------------
Name: Joel B. Piassick
Title: Executive Vice President
HARBINGER CAPITAL PARTNERS SPECIAL SITUATIONS
FUND, L.P.
By: Harbinger Capital Partners Special
Situations GP, LLC
By: HMC - New York, Inc.
By: /s/ William R. Lucas, Jr.
---------------------------------------
Name: William R. Lucas, Jr.
Title: Senior Vice President
& General Counsel
--------------------------- ---------------------------
CUSIP NO. 03815A106 Page 21 of 36
--------------------------- ---------------------------
HARBINGER CAPITAL PARTNERS SPECIAL SITUATIONS
GP, LLC
By: HMC - New York, Inc.
By: /s/ William R. Lucas, Jr.
---------------------------------------
Name: William R. Lucas, Jr.
Title: Senior Vice President
& General Counsel
HMC - NEW YORK, INC.
By: /s/ William R. Lucas, Jr.
---------------------------------------
Name: William R. Lucas, Jr.
Title: Senior Vice President
& General Counsel
HARBERT MANAGEMENT CORPORATION
By: /s/ William R. Lucas, Jr.
---------------------------------------
Name: William R. Lucas, Jr.
Title: Senior Vice President
& General Counsel
/s/ Philip Falcone
--------------------------------------------
Philip Falcone
/s/ Raymond J. Harbert
--------------------------------------------
Raymond J. Harbert
/s/ Michael D. Luce
-------------------------------------------
Michael D. Luce
September 14, 2006
--------------------------- ---------------------------
CUSIP NO. 03815A106 Page 22 of 36
--------------------------- ---------------------------
EXHIBIT B
TRANSACTIONS BY HARBINGER CAPITAL PARTNERS MASTER FUND I, LTD.
TRANSACTIONS IN THE COMMON STOCK, $0.10 PAR VALUE
Date of Number of Shares
Transaction Purchase/(sold) Price of Shares
----------- ----------------- ---------------
8/31/06 10,000 $ 4.6090
9/01/06 53,100 $ 4.73620
TRANSACTIONS BY HARBINGER CAPITAL PARTNERS SPECIAL SITUATIONS FUND, L.P.
TRANSACTIONS IN THE COMMON STOCK, $0.10 PAR VALUE
Date of Number of Shares
Transaction Purchase/(sold) Price of Shares
----------- ----------------- ---------------
8/17/06 75,200 $ 4.5188
8/22/06 16,500 $ 4.5000
8/25/06 4,000 $ 4.4947
8/28/06 12,600 $ 4.4661
8/29/06 41,900 $ 4.5450
8/30/06 5,900 $ 4.5521
--------------------------- ---------------------------
CUSIP NO. 03815A106 Page 23 of 36
--------------------------- ---------------------------
EXHIBIT F
Harbinger Capital Partners Master Fund I, Ltd.
Harbinger Capital Partners Special Situations Fund, L.P.
September 14, 2006
Board of Directors
Applica Incorporated
3633 Flamingo Road
Miramar, Florida 33027
Attention: Harry D. Schulman
Chairman of the Board
Ladies and Gentlemen:
Harbinger Capital Partners Master Fund I, Ltd. and Harbinger Capital
Partners Special Situations Fund, L.P. (together, "Harbinger") are together the
largest shareholder of Applica Incorporated ("Company" or "Applica"), with
ownership of an aggregate of 9,830,800 shares or approximately 40.14% of the
common stock of the Company. As the largest shareholder of Applica, we are very
dissatisfied with the terms of the merger agreement with the Hamilton
Beach/Proctor-Silex subsidiary ("Hamilton Beach") of NACCO Industries, Inc.
("NACCO").
The purpose of this letter is to offer a compelling all-cash
alternative to the transaction with Hamilton Beach. Based on publicly available
information and our knowledge of the Company, we hereby offer to acquire
Applica in a transaction in which the Company's shareholders would receive
$6.00 in cash for each share of common stock.
We believe our all-cash offer allows Applica's shareholders to realize
full value, immediate liquidity and a substantial premium for their shares. In
contrast, the value of the Hamilton Beach stock proposed to be issued to
Applica's shareholders is highly uncertain in light of the absence of any
trading history, what will be a limited public float and its disadvantaged
voting rights.
We have sufficient cash and financing flexibility to fully fund the
proposed transaction and our offer is not subject to any financing condition.
Our offer represents a 73% premium to the closing price for the
Company's common stock on July 21, 2006 (the last trading day prior to the
announcement of the Hamilton Beach merger agreement), a 38% premium to the
average closing price for the Company's common stock for the period since the
announcement of the Hamilton Beach merger on July 24, 2006 through September
13, 2006 (the last trading day prior to our offer) and a 32% premium to the
closing price for the Company's common stock on September 13, 2006 (the last
trading day prior to our offer).
--------------------------- ---------------------------
CUSIP NO. 03815A106 Page 24 of 36
--------------------------- ---------------------------
There are numerous reasons for our dissatisfaction with the proposed
transaction with Hamilton Beach, including the following:
o we believe that economic ownership of only 25% of Hamilton
Beach (particularly after taking into account the $110 million
of indebtedness proposed to be incurred by Hamilton Beach to
finance a dividend for the sole benefit of NACCO) fails to
adequately value Applica and the high vote stock reserved for
NACCO's stockholders significantly disenfranchises Applica's
shareholders, who will have only approximately 6% of the voting
power in the combined company;
o we believe that Hamilton Beach will be significantly leveraged
after the proposed merger, especially in light of the $110
million dividend from Hamilton Beach to NACCO that will be paid
for by debt that will burden the combined Hamilton
Beach/Applica, and that such leverage will substantially
decrease Hamilton Beach's financial and operating flexibility;
and
o there is no guaranty that Hamilton Beach's management will be
able to capture the synergies it expects to be realized in the
proposed merger, we are skeptical that any synergies actually
realized will materially increase the value of the new company
and, in any event, with only 25% ownership of the combined
company, Applica's shareholders are not being afforded adequate
participation in any upside that might result from the
realization of synergies.
Accordingly, we believe our offer is a "superior proposal" relative to
the proposed transaction with Hamilton Beach. Our offer is conditioned on (i)
the termination of the Hamilton Beach merger agreement in accordance with its
terms and without breach by Applica, (ii) the execution of a definitive merger
agreement with us that is customary for transactions of this type, which we are
confident can be accomplished on an expedited basis, (iii) a waiver of the
application of the Florida Affiliated Transactions statute to our merger and
(iv) limited confirmatory legal due diligence. In addition, we would expect
restoration of any of our voting rights that may have been lost as a result of
Florida's Control Share Act.
We have retained Lazard Freres & Co. LLC as our financial advisor and
Paul, Weiss, Rifkind, Wharton & Garrison LLP as our legal advisor and we are
prepared to meet immediately with you and the Company's management and advisors
in order to answer any questions about our offer and to work out the details of
a definitive merger agreement.
This letter is not intended to create or constitute any legally
binding obligation, liability or commitment by us regarding the proposed
transaction, and, other than any confidentiality agreement we may enter into
with you, there will be no legally binding contract or agreement between us
regarding the proposed transaction unless and until a definitive merger
agreement is executed.
--------------------------- ---------------------------
CUSIP NO. 03815A106 Page 25 of 36
--------------------------- ---------------------------
We look forward to a meeting with you at your earliest
convenience.
Very truly yours,
HARBINGER CAPITAL PARTNERS MASTER FUND I,
LTD.
By: Harbinger Capital Partners Offshore Manager,
L.L.C.
By: /s/ Philip A. Falcone
---------------------------------------
Name: Philip A. Falcone
Title: Senior Managing Director
HARBINGER CAPITAL PARTNERS SPECIAL
SITUATIONS FUND, L.P.
By: Harbinger Capital Partners Special Situations GP,
LLC
By: /s/ Philip A. Falcone
---------------------------------------
Name: Philip A. Falcone
Title: Senior Managing Director
--------------------------- ---------------------------
CUSIP NO. 03815A106 Page 26 of 36
--------------------------- ---------------------------
EXHIBIT G
FOR IMMEDIATE RELEASE
HARBINGER OFFERS TO ACQUIRE APPLICA FOR $6 PER SHARE IN CASH
------------------------------------------------------------
ALL CASH OFFER SUPERIOR TO HAMILTON BEACH'S PROPOSED STOCK FOR STOCK MERGER
OFFER REQUIRES TERMINATION OF APPLICA MERGER AGREEMENT WITH HAMILTON BEACH
NEW YORK, NY, SEPTEMBER 14, 2006 -- Harbinger Capital Partners Master Fund I,
Ltd. and Harbinger Capital Partners Special Situations Fund, L.P. (together,
"Harbinger"), together the largest shareholder of Applica Incorporated
("Company" or "Applica") (NYSE: APN), with ownership of an aggregate of
9,830,800 shares or approximately 40% of the common stock of the Company, today
announced that it has sent a letter to Applica's Board proposing to acquire all
outstanding shares of the Company not owned by Harbinger for $6 per share in
cash. As detailed in the letter, Harbinger believes this all-cash, fully funded
proposal is compelling for all Applica shareholders and represents a superior
proposal to Applica's current merger agreement with the Hamilton
Beach/Proctor-Silex subsidiary ("Hamilton Beach") of NACCO Industries, Inc.
("NACCO") (NYSE: NC). The offer is conditioned upon, among other things, the
Company's termination of its merger agreement with Hamilton Beach in accordance
with its terms and without breach by Applica.
In the letter, Harbinger says that "We believe our all-cash offer allows
Applica's shareholders to realize full value, immediate liquidity and a
substantial premium for their shares. In contrast, the value of the Hamilton
Beach stock proposed to be issued to Applica's shareholders is highly uncertain
in light of the absence of any trading history, what will be a limited public
float and its disadvantaged voting rights."
The full text of the letter follows:
Harbinger Capital Partners Master Fund I, Ltd.
Harbinger Capital Partners Special Situations Fund, L.P.
September 14, 2006
Board of Directors
Applica Incorporated
3633 Flamingo Road
Miramar, Florida 33027
Attention: Harry D. Schulman
Chairman of the Board
--------------------------- ---------------------------
CUSIP NO. 03815A106 Page 27 of 36
--------------------------- ---------------------------
Ladies and Gentlemen:
Harbinger Capital Partners Master Fund I, Ltd. and Harbinger Capital
Partners Special Situations Fund, L.P. (together, "Harbinger") are together the
largest shareholder of Applica Incorporated ("Company" or "Applica"), with
ownership of an aggregate of 9,830,800 shares or approximately 40.14% of the
common stock of the Company. As the largest shareholder of Applica, we are very
dissatisfied with the terms of the merger agreement with the Hamilton
Beach/Proctor-Silex subsidiary ("Hamilton Beach") of NACCO Industries, Inc.
("NACCO").
The purpose of this letter is to offer a compelling all-cash
alternative to the transaction with Hamilton Beach. Based on publicly available
information and our knowledge of the Company, we hereby offer to acquire
Applica in a transaction in which the Company's shareholders would receive
$6.00 in cash for each share of common stock.
We believe our all-cash offer allows Applica's shareholders to realize
full value, immediate liquidity and a substantial premium for their shares. In
contrast, the value of the Hamilton Beach stock proposed to be issued to
Applica's shareholders is highly uncertain in light of the absence of any
trading history, what will be a limited public float and its disadvantaged
voting rights.
We have sufficient cash and financing flexibility to fully fund the
proposed transaction and our offer is not subject to any financing condition.
Our offer represents a 73% premium to the closing price for the
Company's common stock on July 21, 2006 (the last trading day prior to the
announcement of the Hamilton Beach merger agreement), a 38% premium to the
average closing price for the Company's common stock for the period since the
announcement of the Hamilton Beach merger on July 24, 2006 through September
13, 2006 (the last trading day prior to our offer) and a 32% premium to the
closing price for the Company's common stock on September 13, 2006 (the last
trading day prior to our offer).
There are numerous reasons for our dissatisfaction with the proposed
transaction with Hamilton Beach, including the following:
o we believe that economic ownership of only 25% of Hamilton
Beach (particularly after taking into account the $110 million
of indebtedness proposed to be incurred by Hamilton Beach to
finance a dividend for the sole benefit of NACCO) fails to
adequately value Applica and the high vote stock reserved for
NACCO's stockholders significantly disenfranchises Applica's
shareholders, who will have only approximately 6% of the voting
power in the combined company;
o we believe that Hamilton Beach will be significantly leveraged
after the proposed merger, especially in light of the $110
million dividend from Hamilton Beach to NACCO that will be paid
for by debt that will burden the combined Hamilton
Beach/Applica, and that such leverage will substantially
decrease Hamilton Beach's financial and operating flexibility;
and
--------------------------- ---------------------------
CUSIP NO. 03815A106 Page 28 of 36
--------------------------- ---------------------------
o there is no guaranty that Hamilton Beach's management will be
able to capture the synergies it expects to be realized in the
proposed merger, we are skeptical that any synergies actually
realized will materially increase the value of the new company
and, in any event, with only 25% ownership of the combined
company, Applica's shareholders are not being afforded adequate
participation in any upside that might result from the
realization of synergies.
Accordingly, we believe our offer is a "superior proposal" relative to
the proposed transaction with Hamilton Beach. Our offer is conditioned on (i)
the termination of the Hamilton Beach merger agreement in accordance with its
terms and without breach by Applica, (ii) the execution of a definitive merger
agreement with us that is customary for transactions of this type, which we are
confident can be accomplished on an expedited basis, (iii) a waiver of the
application of the Florida Affiliated Transactions statute to our merger and
(iv) limited confirmatory legal due diligence. In addition, we would expect
restoration of any of our voting rights that may have been lost as a result of
Florida's Control Share Act.
We have retained Lazard Freres & Co. LLC as our financial advisor and
Paul, Weiss, Rifkind, Wharton & Garrison LLP as our legal advisor and we are
prepared to meet immediately with you and the Company's management and advisors
in order to answer any questions about our offer and to work out the details of
a definitive merger agreement.
This letter is not intended to create or constitute any legally
binding obligation, liability or commitment by us regarding the proposed
transaction, and, other than any confidentiality agreement we may enter into
with you, there will be no legally binding contract or agreement between us
regarding the proposed transaction unless and until a definitive merger
agreement is executed.
We look forward to a meeting with you at your earliest
convenience.
Very truly yours,
HARBINGER CAPITAL PARTNERS MASTER FUND I,
LTD.
By: Harbinger Capital Partners Offshore Manager,
L.L.C.
By: /s/ Philip A. Falcone
---------------------------------------
Name: Philip A. Falcone
Title: Senior Managing Director
HARBINGER CAPITAL PARTNERS SPECIAL
SITUATIONS FUND, L.P.
By: Harbinger Capital Partners Special Situations GP,
LLC
By: /s/ Philip A. Falcone
---------------------------------------
Name: Philip A. Falcone
Title: Senior Managing Director
--------------------------- ---------------------------
CUSIP NO. 03815A106 Page 29 of 36
--------------------------- ---------------------------
ABOUT HARBINGER CAPITAL PARTNERS
Harbinger Capital Partners through its investment team located in New York City
manages in excess of $4 billion in capital through two complementary
strategies. Harbinger Capital Partners Master Fund I, Ltd. is focused on
restructurings, liquidations, event-driven situations, turnarounds and capital
structure arbitrage, including both long and short positions in highly
leveraged and financially distressed companies. Harbinger Capital Partners
Special Situations Fund, L.P. is focused on distressed/high yield debt
securities, special situation equities and private loans/notes in a
predominantly long-only strategy.
This press release does not constitute a solicitation of a proxy, for or with
respect to the annual meeting or any special meeting of the Company's
shareholders. Any such solicitation will be made only pursuant to separate
proxy solicitation complying with the requirements of Section 14(a) of the
Securities Exchange Act of 1934, as amended.
Contacts:
Jeremy Fielding/Mark Semer/Micheline Tang
Kekst and Company
(212) 521 4800
--------------------------- ---------------------------
CUSIP NO. 03815A106 Page 30 of 36
--------------------------- ---------------------------
EXHIBIT H
HARBINGER CAPITAL PARTNERS MASTER FUND I, LTD.
C/O INTERNATIONAL FUND SERVICES (IRELAND) LIMITED
THIRD FLOOR
BISHOP'S SQUARE, REDMOND'S HILL
DUBLIN 2, IRELAND
September 14, 2006
VIA FACSIMILE
-------------
Applica Incorporated
3633 Flamingo Road
Miramar, Florida 33027
Attn: Corporate Secretary
Re: Acquiring Person Statement
Gentlemen:
Please find enclosed an "Acquiring Person Statement" on behalf of
Harbinger Capital Partners Master Fund I, Ltd. and certain other related
parties named therein. The Acquiring Person Statement is being filed in
accordance with Section 607.0902 of the Florida Statutes (the "Control Share
Act"). We seek to have restored any voting rights which may have been lost as
a result of the application of the Control Share Act to shares of Applica's
common stock which we currently beneficially own. In addition, we seek the
grant of voting power over any additional shares of Applica which we may
acquire in the future. We understand that under Section 607.0902(7)(d) of the
Control Share Act, the voting rights to be accorded our shares will be
presented at the next special or annual meeting of Applica shareholders. In
submitting this Statement, we expressly reserve all right to challenge the
constitutionality and validity of the Control Share Act and/or the validity of
any purported application thereof to us or the shares of Applica which we own.
Any questions with regard to this matter should be directed to our
U.S. counsel: Robert B. Schumer and Jeffrey D. Marell at Paul, Weiss, Rifkind,
Wharton & Garrison LLP, 1285 Avenue of the Americas, New York, New York
10019-6064, (212) 373-3000.
--------------------------- ---------------------------
CUSIP NO. 03815A106 Page 31 of 36
--------------------------- ---------------------------
HARBINGER CAPITAL PARTNERS MASTER FUND I, LTD.
September 14, 2006
Page 2
Sincerely,
Harbinger Capital Partners Master Fund I, Ltd.
By: Harbinger Capital Partners Offshore Manager, L.L.C.
By: HMC Investors, L.L.C., Managing Member
By: /s/ Charles D. Miller
-------------------------------------------
Name: Charles D. Miller
Harbinger Capital Partners Special Situations Fund, L.P.
By: Harbinger Capital Partners Special Situations G.P., L.L.C.
By: HMC -- New York, Inc., Managing Member
By: /s/ Charles D. Miller
-------------------------------------------
Name: Charles D. Miller
Harbinger Capital Partners Special Situations G.P., L.L.C.
By: HMC -- New York, Inc., Managing Member
By: /s/ Charles D. Miller
-------------------------------------------
Name: Charles D. Miller
HMC -- New York, Inc.
By: /s/ Charles D. Miller
-------------------------------------------
Name: Charles D. Miller
Harbinger Capital Partners Offshore Manager, L.L.C.
By: HMC Investors, L.L.C., Managing Member
By: /s/ Charles D. Miller
-------------------------------------------
Name: Charles D. Miller
--------------------------- ---------------------------
CUSIP NO. 03815A106 Page 32 of 36
--------------------------- ---------------------------
HARBINGER CAPITAL PARTNERS MASTER FUND I, LTD.
September 14, 2006
Page 3
HMC Investors, L.L.C.
By: /s/ Charles D. Miller
-------------------------------------------
Name: Charles D. Miller
Harbert Management Corporation
By: /s/ Charles D. Miller
-------------------------------------------
Name: Charles D. Miller
--------------------------- ---------------------------
CUSIP NO. 03815A106 Page 33 of 36
--------------------------- ---------------------------
HARBINGER CAPITAL PARTNERS MASTER FUND I, LTD.
September 14, 2006
Page 4
cc: William Lucas
Jeff T. Harris
Jeffrey D. Marell
Robert B. Schumer
--------------------------- ---------------------------
CUSIP NO. 03815A106 Page 34 of 36
--------------------------- ---------------------------
ACQUIRING PERSON STATEMENT
Pursuant to the Florida Control Shares Act, Florida Statutes, Section 607.0902
___________________________________
APPLICA INCORPORATED
(NAME OF ISSUING PUBLIC CORPORATION)
3633 FLAMINGO ROAD, MIRAMAR, FLORIDA
(ADDRESS OF PRINCIPAL EXECUTIVE OFFICE)
___________________________________
HARBINGER CAPITAL PARTNERS
MASTER FUND I, LTD., AND OTHERS NAMED BELOW
NAME OF ACQUIRING PERSON
___________________________________
SEPTEMBER 14, 2006
___________________________________
ITEM (a) IDENTITY OF THE ACQUIRING PERSON:
Harbinger Capital Partners Master Fund I, Ltd. (the "Master Fund I"),
Harbinger Capital Partners Offshore Manager, L.L.C., the investment manager of
the Master Fund I ("HCPO"), HMC Investors, L.L.C., its managing member
("HMCI"), Harbinger Capital Partners Special Situations Fund, L.P. (the
"Special Fund" and together with the Master Fund I, the "Master Funds"),
Harbinger Capital Partners Special Situations GP, LLC, the general partner of
the Special Fund ("HCPSS"), HMC - New York, Inc., its managing member
("HMCNY"), Harbert Management Corporation, as the managing member of HMCI (and
parent of HMCNY) ("HMC"), Philip Falcone, a shareholder of HMC and the
portfolio manager of the Master Funds, Raymond J. Harbert, a shareholder of
HMC, and Michael D. Luce, a shareholder of HMC (collectively the "Acquiring
Person"). The Master Fund I, HCPO and HMCI are collectively referred to herein
as the "Master Fund Entities" and the Special Fund, HCPSS and HMCNY are
collectively referred to herein as the "Special Fund Entities."
ITEM (b) PURPOSE OF THIS STATEMENT:
This Acquiring Person Statement is given pursuant to Section 607.0902,
of the Florida Statutes (the "Control Shares Act").
ITEM (c) NUMBER OF SHARES OWNED:
The Acquiring Person owns, directly or indirectly, 9,830,800 shares of
Common Stock of Applica Incorporated (the "Company"). Each of the entities
which comprise the Master Fund Entities may be deemed to beneficially own,
--------------------------- ---------------------------
CUSIP NO. 03815A106 Page 35 of 36
--------------------------- ---------------------------
within the meaning of Section 13(d) of the Securities Exchange Act of 1934
(the "Exchange Act"), 7,984,300 shares. Each of the entities which comprise
the Special Fund Entities may be deemed to beneficially own 1,846,500 shares.
Philip Falcone, as the portfolio manager of the Master Funds, together with
Raymond J. Harbert and Michael D. Luce, as a result of their respective
ownership interests in HMC, and HMC, may be deemed to beneficially own all
9,830,800 shares. Each of the entities (other than the Master Funds) and
persons which comprise the Acquiring Person specifically disclaim beneficial
ownership in the foregoing shares except to the extent of its or his
respective pecuniary interest therein.
ITEM (d) RANGES OF VOTING POWER:
Except for the possible effect of Section 607.0902 of the Control
Shares Act, the Acquiring Person would be deemed to have voting power, as
provided in Section 607.0902 of the Control Shares Act, with respect to
9,830,800 shares of the Company's Common Stock, or approximately 40.14 percent
of the issued and outstanding shares of the class (based on 24,492,069 shares
outstanding as of August 1, 2006 as set forth in the Company's Form 10-Q for
the quarter ended June 30, 2006), which falls within the one-third or more but
less than a majority of voting power range as set forth in Section 607.0902.
In addition, the Acquiring Person intends to acquire additional shares of the
Company's Common Stock (including additional "control share acquisitions"
within the meaning of Section 607.0902) pursuant to which its range of voting
power would be in the majority or more of all voting power range.
ITEM (e) PLANS WITH RESPECT TO ADDITIONAL PURCHASES OF COMMON STOCK:
The Acquiring Person has sent a letter (the "Letter") to the Board of
Directors of the Company, dated September 14, 2006, a copy of which is
attached hereto, pursuant to which the Acquiring Person has proposed a
transaction in which the Acquiring Person would acquire the outstanding shares
of the Company's Common Stock not owned by the Acquiring Person at a price of
$6.00 per share (the "Acquisition").
The Acquiring Person reserves the right to purchase additional shares
of the Company's Common Stock (including without limitation any purchases
which would be deemed to constitute a "control-share acquisition" within the
meaning of Section 607.0902) in a transaction other than the Acquisition
and/or at a different price per share of Common Stock from that proposed in
the Letter, and/or in the public markets or in privately-negotiated
transactions with other shareholders (the "Additional Purchases").
With respect to the proposed Acquisition and any such Additional
Purchases, the Acquiring Person represents that if consummated, the
Acquisition and/or any such Additional Purchases will not be contrary to law
and that it has the financial capacity to consummate the Acquisition and/or to
make all such Additional Purchases out of funds currently owned by the Master
Funds without the necessity of borrowing any funds. The Acquiring Person bases
its statement regarding compliance with law on its intended compliance with
applicable state and federal laws, including federal securities laws.
--------------------------- ---------------------------
CUSIP NO. 03815A106 Page 36 of 36
--------------------------- ---------------------------
OTHER CONSIDERATIONS:
The Acquiring Person reserves the right to challenge the
constitutionality and validity of the Florida Control Share Act and/or the
validity of any purported application thereof to the Acquiring Person.
This Statement does not constitute a solicitation of a proxy, for or
with respect to the annual meeting or any special meeting of the Company's
shareholders. Any such solicitation will be made only pursuant to separate
proxy solicitation complying with the requirements of Section 14(a) of the
Securities Exchange Act of 1934, as amended.