SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
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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)
Under the Securities Exchange Act of 1934
(Amendment No. 1)*
Steven Madden, Ltd.
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(Name of Issuer)
Common Stock, Par Value $0.0001 Per Share
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(Title of Class of Securities)
556269108
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(CUSIP Number)
Marc Weingarten, Esq.
Schulte Roth & Zabel LLP
919 Third Avenue
New York, New York 10022
(212) 756-2000
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(Name, Address and Telephone Number of Person
Authorized to Receive Notices and Communications)
November 1, 2007
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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 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.
(Continued on following pages)
(Page 1 of 10 Pages)
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* The remainder of this cover page shall be filled out for a reporting person's
initial filing on this form with respect to the subject class of securities, and
for any subsequent amendment containing information which would alter
disclosures provided in a prior cover page.
The information required on the remainder of this cover page shall not be deemed
to be "filed" for the purpose of Section 18 of the Securities Exchange Act of
1934 ("Act") or otherwise subject to the liabilities of that section of the Act
but shall be subject to all other provisions of the Act (however, see the
Notes).
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CUSIP NO. 556269108 SCHEDULE 13D PAGE 2 OF 10 PAGES
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1 NAME OF REPORTING PERSON
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)
CLINTON GROUP, INC.
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2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) [ ]
(b) [ ]
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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
DELAWARE
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7 SOLE VOTING POWER
-0-
----------------------------------------------------------
NUMBER OF 8 SHARED VOTING POWER
SHARES
BENEFICIALLY 1,211,828
OWNED BY ----------------------------------------------------------
EACH 9 SOLE DISPOSITIVE POWER
REPORTING
PERSON WITH -0-
----------------------------------------------------------
10 SHARED DISPOSITIVE POWER
1,211,828
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11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH PERSON
1,211,828
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12 CHECK IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
CERTAIN SHARES*
[ ]
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13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
5.7%
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14 TYPE OF REPORTING PERSON*
IA; CO
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* SEE INSTRUCTIONS
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CUSIP NO. 556269108 SCHEDULE 13D PAGE 3 OF 10 PAGES
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1 NAME OF REPORTING PERSON
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)
CLINTON MULTISTRATEGY MASTER FUND, LTD.
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2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) [ ]
(b) [ ]
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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
CAYMAN ISLANDS
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7 SOLE VOTING POWER
-0-
----------------------------------------------------------
NUMBER OF 8 SHARED VOTING POWER
SHARES
BENEFICIALLY 563,037
OWNED BY ----------------------------------------------------------
EACH 9 SOLE DISPOSITIVE POWER
REPORTING
PERSON WITH -0-
----------------------------------------------------------
10 SHARED DISPOSITIVE POWER
563,037
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11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH PERSON
563,037
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12 CHECK IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
CERTAIN SHARES*
[ ]
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13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
2.6%
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14 TYPE OF REPORTING PERSON*
CO
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* SEE INSTRUCTIONS
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CUSIP NO. 556269108 SCHEDULE 13D PAGE 4 OF 10 PAGES
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1 NAME OF REPORTING PERSON
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)
CLINTON SPECIAL OPPORTUNITIES MASTER FUND, LTD.
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2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) [ ]
(b) [ ]
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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
CAYMAN ISLANDS
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7 SOLE VOTING POWER
-0-
----------------------------------------------------------
NUMBER OF 8 SHARED VOTING POWER
SHARES
BENEFICIALLY 460,723
OWNED BY ----------------------------------------------------------
EACH 9 SOLE DISPOSITIVE POWER
REPORTING
PERSON WITH -0-
----------------------------------------------------------
10 SHARED DISPOSITIVE POWER
460,723
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11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH PERSON
460,723
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12 CHECK IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
CERTAIN SHARES*
[ ]
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13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
2.2%
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14 TYPE OF REPORTING PERSON*
CO
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* SEE INSTRUCTIONS
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CUSIP NO. 556269108 SCHEDULE 13D PAGE 5 OF 10 PAGES
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1 NAME OF REPORTING PERSON
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)
CLINTON LEXINGTON MASTER FUND, L.P.
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2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) [ ]
(b) [ ]
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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
CAYMAN ISLANDS
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7 SOLE VOTING POWER
-0-
----------------------------------------------------------
NUMBER OF 8 SHARED VOTING POWER
SHARES
BENEFICIALLY 188,068
OWNED BY ----------------------------------------------------------
EACH 9 SOLE DISPOSITIVE POWER
REPORTING
PERSON WITH -0-
----------------------------------------------------------
10 SHARED DISPOSITIVE POWER
188,068
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11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH PERSON
188,068
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12 CHECK IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
CERTAIN SHARES*
[ ]
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13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
0.9%
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14 TYPE OF REPORTING PERSON*
PN
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* SEE INSTRUCTIONS
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CUSIP NO. 556269108 SCHEDULE 13D PAGE 6 OF 10 PAGES
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1 NAME OF REPORTING PERSON
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)
GEORGE HALL
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2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) [ ]
(b) [ ]
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3 SEC USE ONLY
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4 SOURCE OF FUNDS*
AF
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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
UNITED STATES
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7 SOLE VOTING POWER
83,400
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NUMBER OF 8 SHARED VOTING POWER
SHARES
BENEFICIALLY 1,211,828
OWNED BY ----------------------------------------------------------
EACH 9 SOLE DISPOSITIVE POWER
REPORTING
PERSON WITH 83,400
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10 SHARED DISPOSITIVE POWER
1,211,828
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11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH PERSON
1,295,228
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12 CHECK IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
CERTAIN SHARES*
[ ]
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13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
6.1%
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14 TYPE OF REPORTING PERSON*
IN
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* SEE INSTRUCTIONS
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CUSIP NO. 556269108 SCHEDULE 13D PAGE 7 OF 10 PAGES
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The Schedule 13D filed on October 18, 2007 by Clinton Group, Inc., a Delaware
corporation ("CGI"), Clinton Multistrategy Master Fund, Ltd., a Cayman Islands
company ("CMSF"), Clinton Special Opportunities Master Fund, Ltd., a Cayman
Islands company ("CSO"), Clinton Lexington Master Fund, L.P., a Cayman Islands
exempted limited partnership ("CLEX") and George Hall (collectively with CGI,
CMSF, CSO and CLEX, the "Reporting Persons") with respect to the shares of
Common Stock, $0.0001 par value per share (the "Shares"), of Steven Madden,
Ltd., a Delaware corporation (the "Issuer") is hereby amended by this Amendment
No. 1 to the 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:
Funds for the purchase of the Shares reported herein were derived from
available capital of CMSF, CSO and CLEX. A total of approximately $30.3 million
was paid to acquire such Shares.
ITEM 4. PURPOSE OF TRANSACTION.
Item 4 of the Schedule 13D is hereby amended by the addition of the following
paragraph:
On November 2, 2007, CGI delivered a letter to Mr. Karson expressing
its approval for the Issuer's board having formed a committee to review
strategic alternatives. CGI noted that it had increased its ownership position
to 6.1% in the expectation that the Issuer's board would in fact take steps to
realize the substantial inherent value of the Issuer. The letter stated that
while CGI continues to believe that a leveraged stock repurchase would improve
the efficiency of the Issuer's capital structure and create immediate accretion
for shareholders, CGI is not wedded to any single alternative and would support
a sale of the Issuer if the acquisition price reflected the Issuer's promising,
long-term business prospects. A copy of the letter is attached hereto as Exhibit
C and incorporated herein by reference.
ITEM 5. INTEREST IN SECURITIES OF THE ISSUER.
Paragraphs (a), (b) and (c) of Item 5 of the Schedule 13D are hereby amended and
restated as follows:
(a) As of the close of business on November 1, 2007, the Reporting
Persons excepting George Hall may be deemed the beneficial owners of an
aggregate of 1,211,828 Shares, constituting approximately 5.7% of the Shares
outstanding. George Hall may be deemed the beneficial owner of an aggregate of
1,295,228 Shares, including 83,400 Shares beneficially owned individually,
constituting approximately 6.1% of the Shares outstanding.
The aggregate percentage of Shares beneficially owned by the Reporting
Persons is based upon 21,322,038 Shares outstanding, which is the total number
of Shares outstanding as of August 6, 2007 as reported in the Issuer's Quarterly
Report on Form 10-Q filed with the Securities and Exchange Commission on August
9, 2007 for the period ended June 30, 2007.
(b) By virtue of investment management agreements with each of CMSF,
CSO and CLEX, CGI has the power to vote or direct the voting, and to dispose or
direct the disposition, of all of the 563,037 Shares held by CMSF, the 460,723
Shares held by CSO and the 188,068 Shares held by CLEX. By virtue of his direct
and indirect control of CGI, George Hall is deemed to have shared voting power
and shared dispositive power with respect to all Shares as to which CGI has
voting power or dispositive power, and he individually holds an additional
83,400 Shares. Accordingly, CGI and George Hall are deemed to have shared voting
and shared dispositive power with respect to an aggregate of 1,211,828 Shares,
and George Hall has sole voting and dispositive power with respect to an
additional 83,400 Shares.
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CUSIP NO. 556269108 SCHEDULE 13D PAGE 8 OF 10 PAGES
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(c) Information concerning transactions in the Shares effected by the
Reporting Persons since the most recent filing on Schedule 13D on October 18,
2007 is set forth in Schedule B hereto and is incorporated herein by reference.
Unless otherwise indicated, all of such transactions were effected in the open
market.
ITEM 6. CONTRACTS, ARRANGEMENTS, UNDERSTANDINGS OR RELATIONSHIPS WITH
RESPECT TO SECURITIES OF THE ISSUER.
Item 6 of the Schedule 13D is hereby amended and restated as follows:
The Reporting Persons may, from time to time, enter into and dispose
of cash-settled equity swap or other similar derivative transactions with one or
more counterparties that are based upon the value of Shares, which transactions
may be significant in amount. The profit, loss and/or return on such contracts
may be wholly or partially dependent on the market value of the Shares, the
relative value of Shares in comparison to one or more other financial
instruments, indexes or securities, a basket or group of securities in which
Shares may be included, or a combination of any of the foregoing. In addition to
the Shares that they beneficially own without reference to these contracts, the
Reporting Persons currently have long economic exposure to 216,129 Shares
through such contracts. These contracts do not give the Reporting Persons direct
or indirect voting, investment or dispositive control over any securities of the
Issuer and do not require the counterparties thereto to acquire, hold, vote or
dispose of any securities of the Issuer. Accordingly, the Reporting Persons
disclaim any beneficial ownership in any securities that may be referenced in
such contracts or that may be held from time to time by any counterparties to
such contracts.
Except as otherwise set forth herein, the Reporting Persons do not have
any contract, arrangement, understanding or relationship with any person with
respect to the securities of the Issuer.
ITEM 7. MATERIAL TO BE FILED AS EXHIBITS
Exhibit A - Joint Filing Agreement dated October 17, 2007 (previously filed)
Exhibit B - Letter to the Issuer's Chairman and CEO dated October 17, 2007
(previously filed)
Exhibit C - Letter to the Issuer's Chairman and CEO dated November 2, 2007
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CUSIP NO. 556269108 SCHEDULE 13D PAGE 9 OF 10 PAGES
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SIGNATURES
After reasonable inquiry and to the best of his or its knowledge and
belief, each of the undersigned certifies that the information set forth in this
statement is true, complete and correct.
Dated: November 2, 2007
CLINTON GROUP, INC.
By: /s/ Francis Ruchalski
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Name: Francis Ruchalski
Title: Comptroller
CLINTON MULTISTRATEGY MASTER FUND, LTD.
By: Clinton Group, Inc. its investment
manager
By: /s/ Francis Ruchalski
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Name: Francis Ruchalski
Title: Comptroller
CLINTON SPECIAL OPPORTUNITIES MASTER FUND, LTD.
By: Clinton Group, Inc. its investment
manager
By: /s/ Francis Ruchalski
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Name: Francis Ruchalski
Title: Comptroller
CLINTON LEXINGTON MASTER FUND, L.P.
By: Clinton Group, Inc. its investment
manager
By: /s/ Francis Ruchalski
---------------------------
Name: Francis Ruchalski
Title: Comptroller
/s/ George Hall
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George Hall
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CUSIP NO. 556269108 SCHEDULE 13D PAGE 10 OF 10 PAGES
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SCHEDULE B
TRANSACTIONS IN THE SHARES BY THE REPORTING PERSONS SINCE OCTOBER 18, 2007
Clinton Multistrategy Master Fund, Ltd.
Trade Date Shared Purchased (Sold) Price Per Share ($)
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10/26/07 7,500 22.24
10/26/07 13,800 22.23
10/29/07 5,500 22.28
10/29/07 17,500 22.06
10/31/07 11,000 22.26
10/31/07 18,700 22.28
11/01/07 16,500 23.25
Clinton Special Opportunities
Trade Date Shared Purchased (Sold) Price Per Share ($)
------------ ------------------------- ---------------------
10/25/07 20,000 20.00
10/25/07 21,442 21.44
10/26/07 4,500 22.24
10/26/07 8,300 22.23
10/29/07 5,500 22.28
10/29/07 17,500 22.06
10/31/07 25,000 22.25
11/01/07 16,500 23.25
Clinton Lexington Master Fund, L.P.
Trade Date Shared Purchased (Sold) Price Per Share ($)
------------ ------------------------- --------------------
10/26/07 3,000 22.24
10/26/07 5,500 22.23
EXHIBIT C
CLINTON GROUP
11/2/2007
Steven Madden, Ltd.
52-16 Barnett Avenue
Long Island City, NY 11104
Attention: Jamieson A. Karson
Chairman of the Board and Chief Executive Officer
Dear Mr. Karson:
As one of the largest shareholders of Steven Madden, Ltd. (the "Company" or
"Steve Madden"), we are pleased the Board of Directors formed a committee to
evaluate strategic alternatives. We applaud the Board for taking this important
first step towards enhancing shareholder value, and have increased our ownership
position to 6.1% in the expectation that the Board will in fact take steps to
realize the substantial inherent value of the Company.
As you know, we previously expressed our preference that the Company execute a
Dutch Tender recapitalization in short order. We still maintain that a
recapitalization would improve the efficiency of the Company's capital structure
and create immediate accretion for shareholders who believe in the Company's
value and wish to maintain their investment. However, we expect that the
Strategic Review Committee will evaluate a variety of alternatives and by no
means are we wedded to any single alternative to the exclusion of others.
Rather, we endorse any Board decision that creates appropriate shareholder
value.
For example, we would support a sale of the Company if the acquisition price
reflected Steve Madden's promising, long-term business prospects. We believe
that a sale at the right price could be the sensible culmination of years of
hard work that has made Steve Madden the strong operating franchise and
best-in-class brand it is today. We think there are potentially multiple buyers
who would be interested in the Company. Steve Madden may be a logical target for
a strategic buyer interested in diversifying its footwear portfolio, or a
financial buyer who could steward growth in a flexible, private context. We
would be supportive of the Board's decision to pursue any alternative as long as
such transaction appropriately reflects the true value of Steve Madden. To that
end, the proposed immediate Dutch Tender recapitalization described in our
previous letter to you would not foreclose the possibility of subsequent
shareholder value initiatives, and the capital structure we suggested would not
contain any prepayment penalties or preclude a subsequent sale of the business.
We hope you find our support welcome and look forward to working constructively
with the Board during the Strategic Review Committee's process. Please feel free
to contact me at (212) 739-1833 or my colleague, Georgene Huang, at (212)
377-4231 at your convenience to discuss any and all issues.
Sincerely,
/s/ Joseph A. De Perio
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Joseph A. De Perio
Vice President