-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, F3ciq5iPDyWjO9Rd8ubhKoHRqdBFpeU0DrsGfDO2YR/TYGEtq1YBF4ahfEueFLvP MnQzl608zt6Lz8u0z09IVA== 0000950123-08-000101.txt : 20080107 0000950123-08-000101.hdr.sgml : 20080107 20080107062432 ACCESSION NUMBER: 0000950123-08-000101 CONFORMED SUBMISSION TYPE: SC 13D/A PUBLIC DOCUMENT COUNT: 1 FILED AS OF DATE: 20080107 DATE AS OF CHANGE: 20080107 GROUP MEMBERS: BREEDEN CAPITAL PARTNERS LLC GROUP MEMBERS: BREEDEN PARTNERS (CALIFORNIA) L.P. GROUP MEMBERS: BREEDEN PARTNERS (CAYMAN) LTD. GROUP MEMBERS: BREEDEN PARTNERS HOLDCO LTD. GROUP MEMBERS: BREEDEN PARTNERS L.P. GROUP MEMBERS: RICHARD C. BREEDEN SUBJECT COMPANY: COMPANY DATA: COMPANY CONFORMED NAME: ZALE CORP CENTRAL INDEX KEY: 0000109156 STANDARD INDUSTRIAL CLASSIFICATION: RETAIL-JEWELRY STORES [5944] IRS NUMBER: 750675400 STATE OF INCORPORATION: DE FISCAL YEAR END: 0731 FILING VALUES: FORM TYPE: SC 13D/A SEC ACT: 1934 Act SEC FILE NUMBER: 005-30781 FILM NUMBER: 08513728 BUSINESS ADDRESS: STREET 1: 901 W WALNUT HILL LN STREET 2: MS 6B-3 CITY: IRVING STATE: TX ZIP: 75038 BUSINESS PHONE: 9725804000 MAIL ADDRESS: STREET 1: 901 WEST WALNUT HILL LANE STREET 2: MAIL STOP 6B-3 CITY: IRVING STATE: TX ZIP: 75038-1003 FORMER COMPANY: FORMER CONFORMED NAME: ZALE JEWELRY CO INC DATE OF NAME CHANGE: 19710510 FILED BY: COMPANY DATA: COMPANY CONFORMED NAME: Breeden Capital Management LLC CENTRAL INDEX KEY: 0001376259 IRS NUMBER: 113765220 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: SC 13D/A BUSINESS ADDRESS: STREET 1: 100 NORTHFIELD STREET CITY: GREENWICH STATE: CT ZIP: 06830 BUSINESS PHONE: 203-618-0065 MAIL ADDRESS: STREET 1: 100 NORTHFIELD STREET CITY: GREENWICH STATE: CT ZIP: 06830 SC 13D/A 1 y45960sc13dza.htm SC 13D/A SC 13D/A
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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
SCHEDULE 13D
Under the Securities Exchange Act of 1934
(Amendment No. 3)*
Zale Corporation
 
(Name of Issuer)
Common Stock, $0.01 par value
 
(Title of Class of Securities)
988858106
 
(CUSIP Number)
Norman J. Harrison
Breeden Capital Management LLC
100 Northfield Street
Greenwich, Connecticut 06830
(203) 618-0065
 
(Name, Address and Telephone Number of Person Authorized to
Receive Notices and Communications)
January 2, 2008
 
(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 §§240.13d-l(e), 240.13d-l(f) or 240.13d-1(g), check the following box. o
Note: Schedules filed in paper format shall include a signed original and five copies of the schedule, including all exhibits. See §240.13d-7 for other parties to whom copies are to be sent.
* The remainder of this cover page shall be filled out for a reporting person’s initial filing on this form with respect to the subject class of securities, and for any subsequent amendment containing information which would alter disclosures provided in a prior cover page.
The information required on the remainder of this cover page shall not be deemed to be “filed” for the purpose of Section 18 of the Securities Exchange Act of 1934 (“Act”) or otherwise subject to the liabilities of that section of the Act but shall be subject to all other provisions of the Act (however, see the Notes)

TABLE OF CONTENTS

ITEM 3. SOURCE AND AMOUNT OF FUNDS OR OTHER CONSIDERATION
ITEM 5. INTEREST IN SECURITIES OF THE ISSUER
SIGNATURES

Table of Contents

                     
CUSIP No.
  
988858106 
  

 

           
1.   Names of Reporting Persons.
I.R.S. Identification Nos. of above persons (entities only).

Breeden Capital Management LLC
     
2.   Check the Appropriate Box if a Member of a Group (See Instructions)
  (a)   o 
  (b)   þ 
     
3.   SEC Use Only
   
   
     
4.   Source of Funds (See Instructions)
   
  AF
     
5.   Check if Disclosure of Legal Proceedings Is Required Pursuant to Items 2(d) or 2(e)
   
  o
     
6.   Citizenship or Place of Organization
   
  Delaware
       
  7.   Sole Voting Power
     
Number of   0
       
Shares 8.   Shared Voting Power
Beneficially    
Owned by   7,070,839
       
Each 9.   Sole Dispositive Power
Reporting    
Person   0
       
With 10.   Shared Dispositive Power
     
    7,070,839
     
11.   Aggregate Amount Beneficially Owned by Each Reporting Person
   
  7,070,839
     
12.   Check if the Aggregate Amount in Row (11) Excludes Certain Shares (See Instructions)
   
  o
     
13.   Percent of Class Represented by Amount in Row (11)
   
  15.85%
     
14.   Type of Reporting Person (See Instructions)
   
  OO

2

Table of Contents

                     
CUSIP No.
  
988858106 
  

 

           
1.   Names of Reporting Persons.
I.R.S. Identification Nos. of above persons (entities only).

Breeden Partners (California) L.P.
     
2.   Check the Appropriate Box if a Member of a Group (See Instructions)
  (a)   o 
  (b)   þ 
     
3.   SEC Use Only
   
   
     
4.   Source of Funds (See Instructions)
   
  AF
     
5.   Check if Disclosure of Legal Proceedings Is Required Pursuant to Items 2(d) or 2(e)
   
  o
     
6.   Citizenship or Place of Organization
   
  Delaware
       
  7.   Sole Voting Power
     
Number of   0
       
Shares 8.   Shared Voting Power
Beneficially    
Owned by   4,355,227
       
Each 9.   Sole Dispositive Power
Reporting    
Person   0
       
With 10.   Shared Dispositive Power
     
    4,355,227
     
11.   Aggregate Amount Beneficially Owned by Each Reporting Person
   
  4,355,227
     
12.   Check if the Aggregate Amount in Row (11) Excludes Certain Shares (See Instructions)
   
  o
     
13.   Percent of Class Represented by Amount in Row (11)
   
  9.76%
     
14.   Type of Reporting Person (See Instructions)
   
  PN

3

Table of Contents

                     
CUSIP No.
  
988858106 
  

 

           
1.   Names of Reporting Persons.
I.R.S. Identification Nos. of above persons (entities only).

Breeden Partners L.P.
     
     
2.   Check the Appropriate Box if a Member of a Group (See Instructions)
  (a)   o 
  (b)   þ 
     
3.   SEC Use Only
   
   
     
4.   Source of Funds (See Instructions)
   
  AF
     
5.   Check if Disclosure of Legal Proceedings Is Required Pursuant to Items 2(d) or 2(e)
   
  o
     
6.   Citizenship or Place of Organization
   
  Delaware
       
  7.   Sole Voting Power
     
Number of   0
       
Shares 8.   Shared Voting Power
Beneficially    
Owned by   1,349,698
       
Each 9.   Sole Dispositive Power
Reporting    
Person   0
       
With 10.   Shared Dispositive Power
     
    1,349,698
     
11.   Aggregate Amount Beneficially Owned by Each Reporting Person
   
  1,349,698
     
12.   Check if the Aggregate Amount in Row (11) Excludes Certain Shares (See Instructions)
   
  o
     
13.   Percent of Class Represented by Amount in Row (11)
   
  3.03%
     
14.   Type of Reporting Person (See Instructions)
   
  PN

4

Table of Contents

                     
CUSIP No.
  
988858106 
  

 

           
1.   Names of Reporting Persons.
I.R.S. Identification Nos. of above persons (entities only).

Breeden Partners Holdco Ltd.
     
     
2.   Check the Appropriate Box if a Member of a Group (See Instructions)
  (a)   o 
  (b)   þ 
     
3.   SEC Use Only
   
   
     
4.   Source of Funds (See Instructions)
   
  AF
     
5.   Check if Disclosure of Legal Proceedings Is Required Pursuant to Items 2(d) or 2(e)
   
  o
     
6.   Citizenship or Place of Organization
   
  Cayman Islands
       
  7.   Sole Voting Power
     
Number of   0
       
Shares 8.   Shared Voting Power
Beneficially    
Owned by   1,365,914
       
Each 9.   Sole Dispositive Power
Reporting    
Person   0
       
With 10.   Shared Dispositive Power
     
    1,365,914
     
11.   Aggregate Amount Beneficially Owned by Each Reporting Person
   
  1,365,914
     
12.   Check if the Aggregate Amount in Row (11) Excludes Certain Shares (See Instructions)
   
  o
     
13.   Percent of Class Represented by Amount in Row (11)
   
  3.06%
     
14.   Type of Reporting Person (See Instructions)
   
  OO

5

Table of Contents

     
CUSIP No. 
988858106
  

 

           
1.   Names of Reporting Persons.
I.R.S. Identification Nos. of above persons (entities only).

Breeden Partners (Cayman) Ltd.
     
     
2.   Check the Appropriate Box if a Member of a Group (See Instructions)

  (a)    o  
  (b)    þ  
     
3.   SEC Use Only
   
   
     
4.   Source of Funds (See Instructions)
   
  AF
     
5.   Check if Disclosure of Legal Proceedings Is Required Pursuant to Items 2(d) or 2(e)
   
  o
     
6.   Citizenship or Place of Organization
   
  Cayman Islands
       
  7.   Sole Voting Power
     
Number of   0
       
Shares
Beneficially		 8.   Shared Voting Power
Owned by Each    
Reporting   1,365,914
       
Person With 9.   Sole Dispositive Power
     
    0
       
  10.   Shared Dispositive Power
     
    1,365,914
     
11.   Aggregate Amount Beneficially Owned by Each Reporting Person
   
  1,365,914
     
12.   Check if the Aggregate Amount in Row (11) Excludes Certain Shares (See Instructions)
   
  o
     
13.   Percent of Class Represented by Amount in Row (11)
   
  3.06%
     
14.   Type of Reporting Person (See Instructions)
   
  OO

6

Table of Contents

                     
CUSIP No.
  
988858106 
  

 

           
1.   Names of Reporting Persons.
I.R.S. Identification Nos. of above persons (entities only).

Breeden Capital Partners LLC
     
     
2.   Check the Appropriate Box if a Member of a Group (See Instructions)

  (a)    o  
  (b)    þ  
     
3.   SEC Use Only
   
   
     
4.   Source of Funds (See Instructions)
   
  AF 
     
5.   Check if Disclosure of Legal Proceedings Is Required Pursuant to Items 2(d) or 2(e)
   
  o
     
6.   Citizenship or Place of Organization
   
  Delaware
       
  7.   Sole Voting Power
     
Number of   0
       
Shares
Beneficially		 8.   Shared Voting Power
Owned by Each    
Reporting   5,704,925
       
Person With 9.   Sole Dispositive Power
     
    0
       
  10.   Shared Dispositive Power
     
    5,704,925
     
11.   Aggregate Amount Beneficially Owned by Each Reporting Person
   
  5,704,925
     
12.   Check if the Aggregate Amount in Row (11) Excludes Certain Shares (See Instructions)
   
  o
     
13.   Percent of Class Represented by Amount in Row (11)
   
  12.79%
     
14.   Type of Reporting Person (See Instructions)
   
  OO

7

Table of Contents

                     
CUSIP No.
  
988858106 
  

 

           
1.   Names of Reporting Persons.
I.R.S. Identification Nos. of above persons (entities only).

Richard C. Breeden
     
     
2.   Check the Appropriate Box if a Member of a Group (See Instructions)

  (a)    o  
  (b)    þ  
     
3.   SEC Use Only
   
   
     
4.   Source of Funds (See Instructions)
   
  AF 
     
5.   Check if Disclosure of Legal Proceedings Is Required Pursuant to Items 2(d) or 2(e)
   
  o
     
6.   Citizenship or Place of Organization
   
  United States
       
  7.   Sole Voting Power
     
Number of   0
       
Shares
Beneficially		 8.   Shared Voting Power
Owned by Each    
Reporting   7,070,839
       
Person With 9.   Sole Dispositive Power
     
    0
       
  10.   Shared Dispositive Power
     
    7,070,839
     
11.   Aggregate Amount Beneficially Owned by Each Reporting Person
   
  7,070,839
     
12.   Check if the Aggregate Amount in Row (11) Excludes Certain Shares (See Instructions)
   
  o
     
13.   Percent of Class Represented by Amount in Row (11)
   
  15.85%
     
14.   Type of Reporting Person (See Instructions)
   
  IN

8

Table of Contents

     This Amendment No. 3 (this “Amendment”) relates to the Schedule 13D filed by Breeden Capital Management LLC (“Breeden Capital”) and Richard C. Breeden (together with, Breeden Partners (California) L.P., Breeden Partners L.P, Breeden Partners Holdco Ltd., Breeden Capital Partners LLC and Breeden Partners (Cayman) Ltd., the “Reporting Persons” or “Breeden Partners”) with the Securities and Exchange Commission on September 17, 2007, as previously amended, (the “Schedule 13D”), relating to the common stock, par value $0.01 per share (“Common Stock”), of Zale Corporation, a Delaware corporation (the “Company”). Terms defined in the Schedule 13D are used herein with the same meaning.
     Items 3 and 5 of the Schedule 13D are hereby amended and supplemented to add the following:
ITEM 3. SOURCE AND AMOUNT OF FUNDS OR OTHER CONSIDERATION.
     The 7,070,839 shares of Common Stock reported herein by the Reporting Persons were acquired by the Reporting Persons for an aggregate purchase price of approximately $136,369,648. The shares of Common Stock that are reported on this Statement on Schedule 13D were acquired with investment capital of the Fund.
ITEM 5. INTEREST IN SECURITIES OF THE ISSUER.
     (a)-(b) The responses of the Reporting Persons to Rows (7) through (13) on the cover pages of this Statement on Schedule 13D are incorporated herein by reference. As of the close of business on the date hereof, the Delaware Fund owned 4,355,227 shares of Common Stock both beneficially and as direct owner, representing approximately 3.03% of the outstanding shares of Common Stock; the California Fund owned 4,355,227 shares of Common Stock both beneficially and as direct owner, representing approximately 9.76% of the outstanding shares of Common Stock; and Holdco owned 1,365,914 shares of Common Stock both beneficially and as direct owner, representing approximately 3.06% of the outstanding shares of Common Stock. The 5,704,925 shares of Common Stock beneficially owned in the aggregate by the Delaware Fund and the California Fund, which shares of Common Stock may be deemed to be beneficially owned by the General Partner, represent approximately 12.79% of the Company’s outstanding shares of Common Stock. As of the date hereof, the 7,070,839 shares of Common Stock beneficially owned in the aggregate by the Fund, which shares of Common Stock may be deemed to be beneficially owned by the Advisor and Mr. Breeden, represent approximately 15.85% of the Company’s outstanding shares of Common Stock. All percentages set forth in this paragraph relating to beneficial ownership of Common Stock are based upon 44,605,804 shares outstanding, which is the total number of shares outstanding as of October 31, 2007 as reported in the Company’s Quarterly Report on Form 10-Q for the quarterly period ended October 31, 2007.
     For purposes of disclosing the number of shares of Common Stock beneficially owned by each of the Reporting Persons, the Advisor, as the investment manager for the Fund, and Mr. Breeden, as Managing Member of the Advisor and the General Partner, and as the Key Principal of the Offshore Investors Fund, may be deemed to own beneficially (as that term is defined in Rule 13d-3 under the Securities Exchange Act of 1934) all shares of the Common Stock that are owned beneficially and directly by the Fund. The General Partner, as general partner of the Delaware Fund and the California Fund, may be deemed to own beneficially (as that term is defined in Rule 13d-3 under the Securities Exchange Act of 1934) all shares of the Common Stock that are owned beneficially and directly by the Delaware Fund and the California Fund. Each of the General Partner, the Advisor and Mr. Breeden disclaims beneficial ownership of such shares for all other purposes. BPC may be deemed to own beneficially all shares of the Common Stock that are owned beneficially and directly by Holdco. The Delaware Fund, the California Fund and Holdco each disclaims beneficial ownership of the shares of Common Stock held directly by the others.
     (c) Except as set forth above or in the attached Schedule I, no Reporting Person has effected any transaction in shares of Common Stock during the 60 days preceding the date hereof.
     (d) Not applicable.
     (e) Not applicable.

9

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SIGNATURES
     After reasonable inquiry and to the best of each of the undersigned’s knowledge and belief, each of the undersigned certifies that the information set forth in this statement is true, complete and correct.
Dated: January 7, 2008
             
    BREEDEN PARTNERS L.P.    
 
            
 
  By:   Breeden Capital Partners LLC,    
 
      General Partner    
 
            
 
  By:   /s/ Richard C. Breeden    
 
     
 
Richard C. Breeden 		   
 
      Managing Member    
 
            
    BREEDEN PARTNERS (CALIFORNIA) L.P.    
 
            
 
  By:   Breeden Capital Partners LLC,    
 
      General Partner    
 
            
 
  By:   /s/ Richard C. Breeden    
 
     
 
Richard C. Breeden 		   
 
      Managing Member    
 
            
    BREEDEN PARTNERS HOLDCO LTD.    
 
            
 
  By:   /s/ Richard C. Breeden    
 
     
 
Richard C. Breeden 		   
 
      Key Principal    
 
            
    BREEDEN CAPITAL PARTNERS LLC    
 
            
 
  By:   /s/ Richard C. Breeden    
 
     
 
Richard C. Breeden 		   
 
      Managing Member    
 
            
    BREEDEN CAPITAL MANAGEMENT LLC    
 
            
 
  By:   /s/ Richard C. Breeden    
 
     
 
Richard C. Breeden 		   
 
      Managing Member    
 
            
    BREEDEN PARTNERS (CAYMAN) LTD.    
 
            
 
  By:   /s/ Richard C. Breeden    
 
     
 
Richard C. Breeden 		   
 
      Key Principal    
 
            
 
      /s/ Richard C. Breeden    
 
     
 
Richard C. Breeden 		   

10

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Schedule I
TRANSACTIONS DURING THE PAST 60 DAYS BY THE REPORTING PERSONS
     The following table sets forth all transactions with respect to shares of Common Stock effected during the past 60 days by any of the Reporting Persons. All such transactions were effected in the open market.
                                 
    Shares Purchased for the   Shares Purchased for the        
Transaction   Account of the Delaware   Account of the California   Shares Purchased for the   Price per
Date   Fund   Fund   Account of Holdco   Share
 
11/8/07
     79,216       200,584       0     $ 19.18  
11/9/07
     1,812       4,588       0     $ 18.73  
12/27/07
     121,141       290,093       138,766     $ 15.60  
12/28/07
     291,652       698,418       334,089     $ 15.66  
12/31/07
     173,208       414,776       198,408     $ 15.89  
01/02/08
     74,765       179,040       85,644     $ 16.21  

11

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