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)*
HealthSpring, Inc.
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(Name of Issuer)
Common Stock, Par Value $0.01 Per Share
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(Title of Class of Securities)
42224N101
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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)
October 4, 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. 42224N101 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-
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NUMBER OF 8 SHARED VOTING POWER
SHARES
BENEFICIALLY 2,828,404
OWNED BY
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EACH 9 SOLE DISPOSITIVE POWER
REPORTING
PERSON WITH -0-
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10 SHARED DISPOSITIVE POWER
2,828,404
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11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH PERSON
2,828,404
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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)
4.9%
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14 TYPE OF REPORTING PERSON*
IA; CO
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* SEE INSTRUCTIONS
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CUSIP NO. 42224N101 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 2,019,277
OWNED BY
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EACH 9 SOLE DISPOSITIVE POWER
REPORTING
PERSON WITH -0-
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10 SHARED DISPOSITIVE POWER
2,019,277
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11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH PERSON
2,019,277
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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)
3.5%
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14 TYPE OF REPORTING PERSON*
CO
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* SEE INSTRUCTIONS
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CUSIP NO. 42224N101 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 809,127
OWNED BY
----------------------------------------------------------
EACH 9 SOLE DISPOSITIVE POWER
REPORTING
PERSON WITH -0-
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10 SHARED DISPOSITIVE POWER
809,127
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11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH PERSON
809,127
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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)
1.4%
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14 TYPE OF REPORTING PERSON*
CO
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* SEE INSTRUCTIONS
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CUSIP NO. 42224N101 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)
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
5,000
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NUMBER OF 8 SHARED VOTING POWER
SHARES
BENEFICIALLY 2,828,404
OWNED BY
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EACH 9 SOLE DISPOSITIVE POWER
REPORTING
PERSON WITH 5,000
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10 SHARED DISPOSITIVE POWER
2,828,404
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11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH PERSON
2,833,404
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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)
4.9%
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14 TYPE OF REPORTING PERSON*
IN
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* SEE INSTRUCTIONS
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CUSIP NO. 42224N101 SCHEDULE 13D PAGE 6 OF 10 PAGES
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The Schedule 13D filed on June 27, 2007 by the 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"), George Hall (collectively with CGI, CMSF and CSO, the
"Reporting Persons") and Conrad Bringsjord with respect to the shares of Common
Stock, $0.01 par value per share (the "Shares"), of HealthSpring, Inc., a
Delaware corporation (the "Issuer") is hereby amended by this Amendment No. 1 to
the Schedule 13D. This is the final amendment to this Schedule 13D and an exit
filing for the Reporting Persons.
ITEM 2. IDENTITY AND BACKGROUND.
Paragraphs (a)-(c) and (f) of Item 2 of the Schedule 13D is hereby amended and
restated as follows:
(a) This statement is filed 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"), and George Hall (collectively, the "Reporting
Persons").
(b) The principal business address of CGI and George Hall is 9 West 57th
Street, 26th Floor, New York, New York 10019. The principal business address of
CMSF and CSO is c/o Fortis Fund Services (Cayman) Limited, P.O. Box 2003 GT,
Grand Pavilion Commercial Centre, 802 West Bay Road, Grand Cayman, Cayman
Islands.
(c) The principal business of CGI is investing for funds and accounts
under its management. The principal business of CMSF and CSO is to invest in
securities. George Hall is the Chief Investment Officer and President of CGI.
(f) George Hall is a citizen of the United States of America.
The name, citizenship, present principal occupation or employment and
business address of each director and executive officer of CGI, CMSF and CSO is
set forth in Schedule A to the Schedule 13D as previously filed on June 27,
2007, and is incorporated herein by reference. To the best of the Reporting
Persons' knowledge, except as set forth in this statement on Schedule 13D, none
of such individuals owns any Shares.
ITEM 4. PURPOSE OF TRANSACTION.
Item 4 of the Schedule 13D is hereby amended by adding the following at the end
thereof:
On October 5, 2007, CGI sent a letter to Mr. Fritch noting the only
modest recent appreciation in the Issuer's stock price notwithstanding
significant positive developments at the Issuer. CGI reiterated its belief that
the Issuer has additional debt capacity to repurchase shares, and that
management should either (i) investigate upsizing its pending debt raise or
adding another tranche to execute a Dutch Auction repurchase of the Issuer's
shares or (ii) employ its unrestricted parent cash and $100 mm undrawn revolver
to aggressively execute open market purchases of the stock. Finally, CGI noted
that it has reduced its position in the Issuer below 5% to further internal
portfolio management objectives, but it continues to support the Issuer's
management team. A copy of the letter is attached hereto as Exhibit D and is
incorporated herein by reference.
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CUSIP NO. 42224N101 SCHEDULE 13D PAGE 7 OF 10 PAGES
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ITEM 5. INTEREST IN SECURITIES OF THE ISSUER.
Paragraphs (a), (b) and (e) of Item 5 of the Schedule 13D are hereby amended and
restated as follows:
(a) As of the close of business on October 4, 2007, the Reporting Persons
excepting George Hall may be deemed the beneficial owners of an aggregate of
2,828,404 Shares, constituting approximately 4.9% of the Shares outstanding.
George Hall may be deemed the beneficial owner of an aggregate of 2,833,404
Shares, including 5,000 Shares beneficially owned individually, constituting
approximately 4.9% of the Shares outstanding.
The aggregate percentage of Shares beneficially owned by the Reporting
Persons is based upon 57,287,113 Shares outstanding, which is the total number
of Shares outstanding as of August 1, 2007 as reported in the Issuer's Quarterly
Report on Form 10-Q filed with the Securities and Exchange Commission on August
14, 2007 for the period ended June 30, 2007.
(b) By virtue of investment management agreements with each of CMSF and
CSO, CGI has the power to vote or direct the voting, and to dispose or direct
the disposition, of all of the 2,019,277 Shares held by CMSF and the 809,127
Shares held by CSO. 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 5,000 Shares. Accordingly, CGI and George
Hall are deemed to have shared voting and shared dispositive power with respect
to an aggregate of 2,828,404 Shares, and George Hall has sole voting and
dispositive power with respect to an additional 5,000 Shares.
(e) The Reporting Persons ceased to be the beneficial owners of more
than five percent of the Shares on October 4, 2007.
Item 6. CONTRACTS, ARRANGEMENTS, UNDERSTANDINGS OR RELATIONSHIPS
WITH RESPECT TO SECURITIES OF THE ISSUER.
Item 6 of the Schedule 13D is 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 short economic exposure to 1,131,114 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.
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CUSIP NO. 42224N101 SCHEDULE 13D PAGE 8 OF 10 PAGES
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Item 7. MATERIAL TO BE FILED AS EXHIBITS
Exhibit A - Joint Filing Agreement dated June 27, 2007 (previously filed)
Exhibit B - Letter to the Issuer's Chairman and CEO dated June 15, 2007
(previously filed)
Exhibit C - Letter to the Issuer's Board dated June 26, 2007 (previously filed)
Exhibit D - Letter to the Issuer's Chairman and CEO dated October 5, 2007
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CUSIP NO. 42224N101 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: October 5, 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
/s/ George Hall
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George Hall
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CUSIP NO. 42224N101 SCHEDULE 13D PAGE 10 OF 10 PAGES
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SCHEDULE B
TRANSACTIONS IN THE SHARES BY THE REPORTING PERSONS DURING THE PAST 60 DAYS
Clinton Multistrategy Master Fund, Ltd.
Trade Date Shared Purchased (Sold) Price Per Share ($)
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10/04/07 (50,000) 20.33
Clinton Special Opportunities
Trade Date Shared Purchased (Sold) Price Per Share ($)
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09/14/07 10,000 18.01
10/04/07 (25,000) 20.33
George Hall
Trade Date Shared Purchased (Sold) Price Per Share ($)
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08/30/07 2,500 18.47
08/30/07 2,500 18.47