1 Pursuant to Rule 424(b)(3) File #333-94757 #333-94757-01 #333-94757-02 #333-94757-04 PROSPECTUS SUPPLEMENT To Prospectus dated July 31, 2000 $172,500,000 CHECKFREE CORPORATION 6 1/2% CONVERTIBLE SUBORDINATED NOTES DUE 2006 The purpose of this supplement is to amend and supplement the prospectus dated August 2, 2000, relating to the offer for resale of up to $172,500,000 aggregate principal amount at maturity of CheckFree Corporation's 6 1/2% Convertible Subordinated Notes due 2006, and such shares of common stock as may be issued upon conversion of the notes. The prospectus is hereby further amended and supplemented to include in the "Selling Securityholders" table the information in the table set forth below regarding an additional selling securityholder and a selling securityholder whose beneficial ownership of notes has increased from the information set forth in the prospectus. The following table is based solely upon information provided to us by or on behalf of the selling securityholders named below and indicates with respect to each such selling securityholder: - the aggregate principal amount of the notes beneficially owned by such selling securityholder as of August 10, 2000; - the maximum amount of notes that such selling securityholder may offer under the prospectus; - the number of shares of CheckFree common stock beneficially owned by such selling securityholder as of August 10, 2000; - the maximum number of shares of CheckFree common stock that may be offered for the account of such selling securityholder under the prospectus. NO. OF SHARES AGGREGATE OF COMMON PRINCIPAL PRINCIPAL STOCK OWNED NO. OF SHARES OF AMOUNT AMOUNT OF PRIOR TO COMMON STOCK NAME OF SELLING SECURITYHOLDER OF NOTES NOTES OFFERED OFFERING(*) OFFERED(*) - --------------------------------------- ----------------- ---------------- ---------------- ------------------- AIG/National Union Fire Insurance $1,465,000 $1,465,000 20,013 20,013 Allstate Insurance Company $1,800,000 $1,800,000 24,590 24,590 Aloha Airlines Non-Pilots Pension $60,000 $60,000 819 819 Trust Aloha Airlines Pilots Retirement Trust $35,000 $35,000 478 478 BBT Fund, L.P. $10,250,000 $10,250,000 140,027 140,027 2 Bear, Stearns & Co., Inc. $1,000,000 $1,000,000 13,661 13,661 BP Amoco PLC, Master Trust $2,190,000 $2,190,000 29,918 29,918 C & H Sugar Company, Inc. $100,000 $100,000 1,366 1,366 CIBC World Markets $10,500,000 $10,500,000 143,442 143,442 Clinton Riverside Convertible $2,600,000 $2,600,000 35,519 35,519 Portfolio Limited Delaware PERS $1,725,000 $1,725,000 23,565 23,565 Deutsche Bank AG $36,400,000 $36,400,000 497,267 497,267 First Republic Bank $350,000 $350,000 4,781 4,781 Forestal Funding Master Trust $6,000,000 $6,000,000 81,967 81,967 Hawaiian Airlines Employees Pension $55,000 $55,000 751 751 Plan-IAM Hawaiian Airlines Pension Plan for $10,000 $10,000 136 136 Salaried Employees Hawaiian Airlines Pilots Retirement $85,000 $85,000 1,161 1,161 Plan Hotel Union & Hotel Industry of Hawaii $447,000 $447,000 6,106 6,106 ICI American Holdings Trust $925,000 $925,000 12,636 12,636 Island Holdings $30,000 $30,000 409 409 ITG, Inc. $256,000 $256,000 3,497 3,497 Jeffiere & Company, Inc. $10,000 $10,000 136 136 JMG Capitol Partners, LP $3,505,000 $3,505,000 47,882 47,882 JMG Triton Offshore Fund, Ltd. $4,505,000 $4,505,000 61,543 61,543 KBC Financial Products $1,000,000 $1,000,000 13,661 13,661 Kentfield Trading, Ltd. $6,440,000 $6,440,000 87,978 87,978 Liberty View Funds L.P. $500,000 $500,000 6,830 6,830 Merrill Lynch, Pierce, Fenner & $873,000 $873,000 11,926 11,926 Smith, Inc. Nalco Chemical Company $600,000 $600,000 8,196 8,196 3 Paloma Strategic Securities Limited $1,000,000 $1,000,000 13,661 13,661 Phelp IV, LLC $109,000 $109,000 1,489 1,489 Queen's Health Plan $20,000 $20,000 273 273 Robertson Stephens $11,000,000 $11,000,000 150,273 150,273 Sagamore Hill Hub Fund Ltd. $250,000 $250,000 3,415 3,415 Southern Farm Bureau Life Insurance - $2,100,000 $2,100,000 28,688 28,688 FRIC Starvest Combined Portfolio $1,900,000 $1,900,000 25,956 25,956 Starvest Managed Portfolio $140,000 $140,000 1,912 1,912 State of Oregon Equity $5,125,000 $5,125,000 70,013 70,013 State of Oregon/SAIF Corporation $2,175,000 $2,175,000 29,713 29,713 TCW Group, Inc. $5,825,000 $5,825,000 79,576 79,576 The Estate of Janus Campbell $1,229,000 $1,229,000 16,789 16,789 TQA Master Fund $600,000 $600,000 8,196 8,196 TQA Master Fund Plus $250,000 $250,000 3,415 3,415 Tracor Inc., Employees Retirement Plan $160,000 $160,000 2,185 2,185 Tribecca Investments L.L.C. $6,000,000 $6,000,000 81,967 81,967 Viacom Inc. Pension Plan Master Trust $64,000 $64,000 874 874 Zeneca Holdings Trust $650,000 $650,000 8,879 8,879 - -------------------- * Reflects the shares of common stock into which the notes held by such securityholder are convertible at the initial conversion rate. The conversion rate and the number of shares of common stock issuable upon conversion of the notes are subject to adjustment under certain circumstances. See "Description of the Notes -- Conversion" in the prospectus The selling securityholders named above may, in transactions exempt from the registration requirements of the Securities Act of 1933, as amended, have sold, transferred or otherwise disposed of all or a portion of their notes and common stock since the date on which they provided the information in the table regarding their notes and common stock. Any such sales would affect the data in the table above. THE DATE OF THIS PROSPECTUS SUPPLEMENT IS AUGUST 11, 2000.