UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
SCHEDULE 13D/A
(Rule 13d-101)
Under the Securities Exchange Act of 1934
(Amendment No. 5)
NEW CENTURY FINANCIAL CORPORATION
(Name of Issuer)
Common Stock, $0.01 par value per share
(Title of Class of Securities)
6435EV108
(CUSIP NUMBER)
GREENLIGHT CAPITAL, L.L.C.
140 East 45th Street, Floor 24
New York, New York 10017
Tel. No.: (212) 973-1900
(Name, Address and Telephone Number of Person
Authorized to Receive Notices and Communications)
- with copies to -
Eliot D. Raffkind
Akin Gump Strauss Hauer & Feld LLP
1700 Pacific Avenue, Suite 4100
Dallas, Texas 75201-4618
(214) 969-2800
March 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 Sections 240.13d-1(e), 240.13d-1(f) or 240.13d-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.
Page 1 of 11
* 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).
PERSONS WHO RESPOND TO THE COLLECTION OF INFORMATION CONTAINED IN THIS FORM ARE
NOT REQUIRED TO RESPOND UNLESS THE FORM DISPLAYS A CURRENTLY VALID OMB CONTROL
NUMBER.
Page 2 of 11
CUSIP NO. 6435EV108 13D/A
--------------------------------------------------------------------------------
1 NAME OF REPORTING PERSONS
Greenlight Capital, L.L.C.
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)
13-3886851
--------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) [ ]
(b) [ ]
--------------------------------------------------------------------------------
3 SEC USE ONLY
--------------------------------------------------------------------------------
4 SOURCE OF FUNDS*
AF
--------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT
TO ITEM 2(d) or 2(e) [ ]
--------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
Delaware
--------------------------------------------------------------------------------
7 SOLE VOTING POWER
2,515,300
NUMBER OF -----------------------------------------------------------------
SHARES 8 SHARED VOTING POWER
BENEFICIALLY 0
OWNED BY -----------------------------------------------------------------
EACH 9 SOLE DISPOSITIVE POWER
REPORTING 2,515,300
PERSON -----------------------------------------------------------------
WITH 10 SHARED DISPOSITIVE POWER
0
--------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
2,515,300
--------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES* [ ]
--------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
4.4%
--------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
OO
--------------------------------------------------------------------------------
*SEE INSTRUCTIONS BEFORE FILLING OUT
Page 3 of 11
CUSIP NO. 6435EV108 13D/A
--------------------------------------------------------------------------------
1 NAME OF REPORTING PERSONS
Greenlight Capital, Inc.
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)
13-3871632
--------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) [ ]
(b) [ ]
--------------------------------------------------------------------------------
3 SEC USE ONLY
--------------------------------------------------------------------------------
4 SOURCE OF FUNDS*
AF
--------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT
TO ITEM 2(d) or 2(e) [ ]
--------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
Delaware
--------------------------------------------------------------------------------
7 SOLE VOTING POWER
2,583,900
NUMBER OF -----------------------------------------------------------------
SHARES 8 SHARED VOTING POWER
BENEFICIALLY 0
OWNED BY -----------------------------------------------------------------
EACH 9 SOLE DISPOSITIVE POWER
REPORTING 2,583,900
PERSON -----------------------------------------------------------------
WITH 10 SHARED DISPOSITIVE POWER
0
--------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
2,583,900
--------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES* [ ]
--------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
4.6%
--------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
CO
--------------------------------------------------------------------------------
*SEE INSTRUCTIONS BEFORE FILLING OUT
Page 4 of 11
CUSIP NO. 6435EV108 13D/A
--------------------------------------------------------------------------------
1 NAME OF REPORTING PERSONS
DME Advisors, L.P.
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)
20-1365209
--------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) [ ]
(b) [ ]
--------------------------------------------------------------------------------
3 SEC USE ONLY
--------------------------------------------------------------------------------
4 SOURCE OF FUNDS*
AF
--------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT
TO ITEM 2(d) or 2(e) [ ]
--------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
Delaware
--------------------------------------------------------------------------------
7 SOLE VOTING POWER
400,800
NUMBER OF -----------------------------------------------------------------
SHARES 8 SHARED VOTING POWER
BENEFICIALLY 0
OWNED BY -----------------------------------------------------------------
EACH 9 SOLE DISPOSITIVE POWER
REPORTING 400,800
PERSON -----------------------------------------------------------------
WITH 10 SHARED DISPOSITIVE POWER
0
--------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
400,800
--------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES* [ ]
--------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
0.7%
--------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
PN
--------------------------------------------------------------------------------
*SEE INSTRUCTIONS BEFORE FILLING OUT
Page 5 of 11
CUSIP NO. 6435EV108 13D/A
--------------------------------------------------------------------------------
1 NAME OF REPORTING PERSON
DME Advisors GP, L.L.C.
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)
20-1365209
--------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) [ ]
(b) [ ]
--------------------------------------------------------------------------------
3 SEC USE ONLY
--------------------------------------------------------------------------------
4 SOURCE OF FUNDS*
AF
--------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT
TO ITEM 2(d) or 2(e) [ ]
--------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
Delaware
--------------------------------------------------------------------------------
7 SOLE VOTING POWER
400,800
NUMBER OF -----------------------------------------------------------------
SHARES 8 SHARED VOTING POWER
BENEFICIALLY 0
OWNED BY -----------------------------------------------------------------
EACH 9 SOLE DISPOSITIVE POWER
REPORTING 400,800
PERSON -----------------------------------------------------------------
WITH 10 SHARED DISPOSITIVE POWER
0
--------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
400,800
--------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES* [ ]
--------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
0.7%
--------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
PN
--------------------------------------------------------------------------------
*SEE INSTRUCTIONS BEFORE FILLING OUT
Page 6 of 11
CUSIP NO. 6435EV108 13D/A
--------------------------------------------------------------------------------
1 NAME OF REPORTING PERSONS
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)
David Einhorn
--------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) [ ]
(b) [ ]
--------------------------------------------------------------------------------
3 SEC USE ONLY
--------------------------------------------------------------------------------
4 SOURCE OF FUNDS*
AF
--------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT
TO ITEM 2(d) or 2(e) [ ]
--------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
USA
--------------------------------------------------------------------------------
7 SOLE VOTING POWER
5,500,000
NUMBER OF -----------------------------------------------------------------
SHARES 8 SHARED VOTING POWER
BENEFICIALLY 0
OWNED BY -----------------------------------------------------------------
EACH 9 SOLE DISPOSITIVE POWER
REPORTING 5,500,000
PERSON -----------------------------------------------------------------
WITH 10 SHARED DISPOSITIVE POWER
0
--------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
5,500,000
--------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES* [ ]
--------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
9.7%
--------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
IN
--------------------------------------------------------------------------------
*SEE INSTRUCTIONS BEFORE FILLING OUT
Page 7 of 11
AMENDMENT NO. 5 TO SCHEDULE 13D
This Amendment No. 5 to Schedule 13D (this "Amendment") is being filed
on behalf of Greenlight Capital, L.L.C., a Delaware limited liability company
("Greenlight LLC"), Greenlight Capital, Inc., a Delaware corporation
("Greenlight Inc"), DME Advisors, L.P., a Delaware limited partnership ("DME"),
DME Advisors GP, L.L.C., a Delaware limited liability company which serves as
general partner of DME ("DME GP" together with Greenlight LLC, Greenlight Inc
and DME, "Greenlight"), and Mr. David Einhorn, principal of Greenlight LLC,
Greenlight Inc and DME GP (the "Principal" and together with Greenlight, the
"Reporting Persons"), relating to shares of common stock, par value $0.01 per
share (the "Common Stock"), of New Century Financial Corporation, a Maryland
corporation ("New Century" or the "Issuer"). This Amendment modifies the
original Schedule 13D filed with the Securities and Exchange Commission (the
"Commission") on December 13, 2002, as amended by Amendment No. 1 filed with the
Commission on March 18, 2003, as further amended by Amendment No. 2 filed with
the Commission on April 20, 2004, as further amended by Amendment No. 3 filed
with the Commission on April 28, 2005, as further amended by Amendment No.4
filed with the Commission on February 17, 2006 (the "Schedule 13D").
This Amendment relates to shares of Common Stock owned by (1)
Greenlight Capital, L.P., a Delaware limited partnership of which Greenlight LLC
is the general partner ("Greenlight Fund"), (2) Greenlight Capital Qualified,
L.P., a Delaware limited partnership of which Greenlight LLC is the general
partner ("Greenlight Qualified"), (3) Greenlight Capital Offshore, Ltd., a
British Virgin Islands international business company ("Greenlight Offshore")
for whom Greenlight Inc acts as investment manager and (4) the managed account
for which DME acts as investment manager (such managed account together with
Greenlight Fund, Greenlight Qualified and Greenlight Offshore, the "Greenlight
Entities" and together with the Reporting Persons the "Greenlight Parties").
ITEM 4. PURPOSE OF THE TRANSACTION
Item 4 of the Schedule 13D is hereby amended by adding the following:
On March 14, 2006, the Greenlight Parties entered into an Agreement (the
"Settlement Agreement") with New Century, a copy of which is filed herewith as
Exhibit 99.1 and incorporated herein by reference. Pursuant to the terms of the
Settlement Agreement, the Greenlight Parties have agreed to withdraw the notice
(the "Greenlight Notice"), dated February 16, 2006, to New Century of the
Reporting Persons' intent to nominate three directors for election at New
Century's 2006 Annual Meeting of Stockholders (the "2006 Annual Meeting").
Under the terms of the Settlement Agreement, New Century agreed to increase
the size of its Board of Directors (the "Board") to 11 members, and to appoint
David Einhorn to the Board, as a Class III director, effective as of March 31,
2006. New Century also agreed to include the Principal in New Century's slate of
nominees for election as a Class III director at the 2006 Annual Meeting.
Page 8 of 10
Additionally, the Board will grant the Greenlight Parties a waiver (the
"Waiver") effective no later than May 11, 2006 of the "Ownership Limit" under
the Company's charter such that the Greenlight Parties and their controlled
affiliates shall be an "Excepted Holder" of Common Stock under the Company's
charter with an "Excepted Holder Limit" of 19.6% of the lesser of the value or
the number of shares of the Common Stock, subject to certain reductions
described in the Settlement Agreement.
The Greenlight Parties agreed to vote their shares of New Century common
stock at New Century's 2006 Annual Meeting of Stockholders, which is scheduled
for May 10, 2006, in favor of (i) the slate of nominees proposed by the Board
(including the Principal), (ii) a charter amendment to amend the definition of
"Excepted Holder Limit" to allow the Board to grant exemptions from the
"Ownership Limit" without having to reduce the "Ownership Limit" applicable to
all other stockholders and (iii) certain other matters submitted to the
stockholders of New Century in accordance with the recommendation of the Board
as to how shares of Common Stock should be voted. The Greenlight Parties also
agreed not to engage in a proxy contest or attempt to obtain additional
representation on the Board until the earlier of the date of New Century's 2009
Annual Meeting of Stockholders or when the Principal resigns from New Century's
Board.
The foregoing description does not purport to be complete and is qualified
in its entirety by reference to the Settlement Agreement.
ITEM 6. CONTRACTS, ARRANGEMENTS, UNDERSTANDINGS OR RELATIONSHIPS WITH RESPECT TO
SECURITIES OF THE ISSUER
Item 6 is hereby amended to add the following:
The Settlement Agreement and the description of the Settlement Agreement
set forth in the response to Item 4 above are incorporated herein by reference.
The description does not purport to be complete and is qualified in its entirety
by reference to the Settlement Agreement.
ITEM 7. MATERIAL TO BE FILED AS EXHIBITS
Item 7 is hereby amended to add the following:
Exhibit 99.1 Agreement dated March 14, 2006, by and among New Century Financial
Corporation, a Maryland corporation, and Greenlight Capital, L.P.,
a Delaware limited partnership, Greenlight Capital L.L.C., a
Delaware limited liability company, Greenlight Capital, Inc., a
Delaware corporation, DME Advisors, L.P., a Delaware limited
partnership, DME Advisors GP, L.L.C., a Delaware limited liability
company, Greenlight Capital Qualified, L.P., a Delaware limited
partnership, Greenlight Capital Offshore, Ltd., a British Virgin
Islands international business company, and David Einhorn, an
individual.
Exhibit 99.2 Press Release, dated March 15, 2006, issued by Greenlight Inc.
Page 9 of 10
SIGNATURE
After reasonable inquiry and to the best of my knowledge and belief, the
undersigned certifies that the information set forth in this statement is true,
complete and correct.
Dated: March 15, 2006
GREENLIGHT CAPITAL, L.L.C.
By: /s/ DANIEL ROITMAN
------------------------------------
Daniel Roitman, Chief
Operating Officer
GREENLIGHT CAPITAL, INC.
By: /s/ DANIEL ROITMAN
------------------------------------
Daniel Roitman, Chief
Operating Officer
DME Advisors, L.P.
By: DME Advisors GP, L.L.C.
By: /S/ DANIEL ROITMAN
------------------------------------
Daniel Roitman, Chief
Operating Officer
DME Advisors GP, L.L.C.
By: /S/ DANIEL ROITMAN
------------------------------------
Daniel Roitman, Chief
Operating Officer
/s/ DANIEL ROITMAN
----------------------------------------
Daniel Roitman, on behalf of
David Einhorn
The Power of Attorney, executed by David Einhorn authorizing Harry Brandler
and Daniel Roitman to sign and file this Schedule 13D on David Einhorn's behalf,
which was filed with the Schedule 13G filed with the Securities and Exchange
Commission on July 18, 2005, by the Reporting Persons with respect to the
Ordinary Shares of Flamel Technologies S.A. is hereby incorporated by reference.
Page 10 of 10