UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
SCHEDULE 13G
Under the Securities Exchange Act of 1934
NEPHROS, INC.
----------------
(Name of Issuer)
COMMON STOCK, PAR VALUE $.001 PER SHARE
---------------------------------------
(Title of Class of Securities)
640671103
--------------
(CUSIP Number)
DECEMBER 31, 2004
-------------------------------------------------------
(Date of Event which Requires Filing of this Statement)
Check the appropriate box to designate the rule pursuant to which this
Schedule is filed.
[_] Rule 13d-1(b)
[_] Rule 13d-1(c)
[X] Rule 13d-1(d)
*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 reminder 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).
CUSIP No. 640671103 Schedule 13G Page 2
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1. Name of Reporting Person
S.S. or I.R.S. Identification No.:
WPPN, LP
--------------------------------------------------------------------------------
2. Check the Appropriate Box if a Member of a Group:
(a) [_]
(b) [X]
--------------------------------------------------------------------------------
3. SEC Use Only
--------------------------------------------------------------------------------
4. Citizenship or Place of Organization:
Delaware
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5. Sole Voting Power: 918,801
Number of
shares -------------------------------------------------
Beneficially 6. Shared Voting Power: -0-
Owned By
Each -------------------------------------------------
Reporting 7. Sole Dispositive Power: 918,801
Person
With -------------------------------------------------
8. Shared Dispositive Power: -0-
--------------------------------------------------------------------------------
9. Aggregate Amount Beneficially Owned by Each Reporting Person:
918,801
--------------------------------------------------------------------------------
10. Check Box if the Aggregate Amount in Row (9) Excludes Certain shares:
[_]
--------------------------------------------------------------------------------
11. Percent of Class Represented by Amount in Row (9):
7.58%
--------------------------------------------------------------------------------
12. Type of Reporting Person:
PN
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CUSIP No. 640671103 Schedule 13G Page 3
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1. Name of Reporting Person
S.S. or I.R.S. Identification No.:
Cypress Management Partners, LLC
--------------------------------------------------------------------------------
2. Check the Appropriate Box if a Member of a Group:
(a) [_]
(b) [X]
--------------------------------------------------------------------------------
3. SEC Use Only
--------------------------------------------------------------------------------
4. Citizenship or Place of Organization:
Delaware
--------------------------------------------------------------------------------
5. Sole Voting Power: 918,801
Number of
shares -------------------------------------------------
Beneficially 6. Shared Voting Power: -0-
Owned By
Each -------------------------------------------------
Reporting 7. Sole Dispositive Power: 918,801
Person
With -------------------------------------------------
8. Shared Dispositive Power: -0-
--------------------------------------------------------------------------------
9. Aggregate Amount Beneficially Owned by Each Reporting Person:
918,801
--------------------------------------------------------------------------------
10. Check Box if the Aggregate Amount in Row (9) Excludes Certain shares:
[_]
--------------------------------------------------------------------------------
11. Percent of Class Represented by Amount in Row (9):
7.58%
--------------------------------------------------------------------------------
12. Type of Reporting Person:
OO
--------------------------------------------------------------------------------
CUSIP No. 640671103 Schedule 13G Page 4
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1. Name of Reporting Person
S.S. or I.R.S. Identification No.:
Cypress Capital Assets, LP
--------------------------------------------------------------------------------
2. Check the Appropriate Box if a Member of a Group:
(a) [_]
(b) [X]
--------------------------------------------------------------------------------
3. SEC Use Only
--------------------------------------------------------------------------------
4. Citizenship or Place of Organization:
Delaware
--------------------------------------------------------------------------------
5. Sole Voting Power: 918,801
Number of
shares -------------------------------------------------
Beneficially 6. Shared Voting Power: -0-
Owned By
Each -------------------------------------------------
Reporting 7. Sole Dispositive Power: 918,801
Person
With -------------------------------------------------
8. Shared Dispositive Power: -0-
--------------------------------------------------------------------------------
9. Aggregate Amount Beneficially Owned by Each Reporting Person:
918,801
--------------------------------------------------------------------------------
10. Check Box if the Aggregate Amount in Row (9) Excludes Certain shares:
[_]
--------------------------------------------------------------------------------
11. Percent of Class Represented by Amount in Row (9):
7.58%
--------------------------------------------------------------------------------
12. Type of Reporting Person:
PN
--------------------------------------------------------------------------------
CUSIP No. 640671103 Schedule 13G Page 5
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1. Name of Reporting Person
S.S. or I.R.S. Identification No.:
Cypress Capital Advisors, LLC
--------------------------------------------------------------------------------
2. Check the Appropriate Box if a Member of a Group:
(a) [_]
(b) [X]
--------------------------------------------------------------------------------
3. SEC Use Only
--------------------------------------------------------------------------------
4. Citizenship or Place of Organization:
Delaware
--------------------------------------------------------------------------------
5. Sole Voting Power: 918,801
Number of
shares -------------------------------------------------
Beneficially 6. Shared Voting Power: -0-
Owned By
Each -------------------------------------------------
Reporting 7. Sole Dispositive Power: 918,801
Person
With -------------------------------------------------
8. Shared Dispositive Power: -0-
--------------------------------------------------------------------------------
9. Aggregate Amount Beneficially Owned by Each Reporting Person:
918,801
--------------------------------------------------------------------------------
10. Check Box if the Aggregate Amount in Row (9) Excludes Certain shares:
[_]
--------------------------------------------------------------------------------
11. Percent of Class Represented by Amount in Row (9):
7.58%
--------------------------------------------------------------------------------
12. Type of Reporting Person:
OO
--------------------------------------------------------------------------------
CUSIP No. 640671103 Schedule 13G Page 6
--------------------------------------------------------------------------------
1. Name of Reporting Person
S.S. or I.R.S. Identification No.:
Wasserstein SBIC Ventures II, LP
--------------------------------------------------------------------------------
2. Check the Appropriate Box if a Member of a Group:
(a) [_]
(b) [X]
--------------------------------------------------------------------------------
3. SEC Use Only
--------------------------------------------------------------------------------
4. Citizenship or Place of Organization:
Delaware
--------------------------------------------------------------------------------
5. Sole Voting Power: 829,104
Number of
shares -------------------------------------------------
Beneficially 6. Shared Voting Power: -0-
Owned By
Each -------------------------------------------------
Reporting 7. Sole Dispositive Power: 829,104
Person
With -------------------------------------------------
8. Shared Dispositive Power: -0-
--------------------------------------------------------------------------------
9. Aggregate Amount Beneficially Owned by Each Reporting Person:
829,104
--------------------------------------------------------------------------------
10. Check Box if the Aggregate Amount in Row (9) Excludes Certain shares:
[_]
--------------------------------------------------------------------------------
11. Percent of Class Represented by Amount in Row (9):
6.84%
--------------------------------------------------------------------------------
12. Type of Reporting Person:
PN
--------------------------------------------------------------------------------
CUSIP No. 640671103 Schedule 13G Page 7
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1. Name of Reporting Person
S.S. or I.R.S. Identification No.:
Wasserstein Levered Venture Partners II, LLC
--------------------------------------------------------------------------------
2. Check the Appropriate Box if a Member of a Group:
(a) [_]
(b) [X]
--------------------------------------------------------------------------------
3. SEC Use Only
--------------------------------------------------------------------------------
4. Citizenship or Place of Organization:
[Delaware]
--------------------------------------------------------------------------------
5. Sole Voting Power: 829,104
Number of
shares -------------------------------------------------
Beneficially 6. Shared Voting Power: -0-
Owned By
Each -------------------------------------------------
Reporting 7. Sole Dispositive Power: 829,104
Person
With -------------------------------------------------
8. Shared Dispositive Power: -0-
--------------------------------------------------------------------------------
9. Aggregate Amount Beneficially Owned by Each Reporting Person:
829,104
--------------------------------------------------------------------------------
10. Check Box if the Aggregate Amount in Row (9) Excludes Certain shares:
[_]
--------------------------------------------------------------------------------
11. Percent of Class Represented by Amount in Row (9):
6.84%
--------------------------------------------------------------------------------
12. Type of Reporting Person:
OO
--------------------------------------------------------------------------------
CUSIP No. 640671103 Schedule 13G Page 8
--------------------------------------------------------------------------------
1. Name of Reporting Person
S.S. or I.R.S. Identification No.:
Wasserstein Investments LLC
--------------------------------------------------------------------------------
2. Check the Appropriate Box if a Member of a Group:
(a) [_]
(b) [X]
--------------------------------------------------------------------------------
3. SEC Use Only
--------------------------------------------------------------------------------
4. Citizenship or Place of Organization:
Delaware
--------------------------------------------------------------------------------
5. Sole Voting Power: 834,492
Number of
shares -------------------------------------------------
Beneficially 6. Shared Voting Power: -0-
Owned By
Each -------------------------------------------------
Reporting 7. Sole Dispositive Power: 834,492
Person
With -------------------------------------------------
8. Shared Dispositive Power: -0-
--------------------------------------------------------------------------------
9. Aggregate Amount Beneficially Owned by Each Reporting Person:
834,492
--------------------------------------------------------------------------------
10. Check Box if the Aggregate Amount in Row (9) Excludes Certain shares:
[_]
--------------------------------------------------------------------------------
11. Percent of Class Represented by Amount in Row (9):
6.88%
--------------------------------------------------------------------------------
12. Type of Reporting Person:
OO
--------------------------------------------------------------------------------
CUSIP No. 640671103 Schedule 13G Page 9
--------------------------------------------------------------------------------
1. Name of Reporting Person
S.S. or I.R.S. Identification No.:
Wasserstein Holdings, LLC
--------------------------------------------------------------------------------
2. Check the Appropriate Box if a Member of a Group:
(a) [_]
(b) [X]
--------------------------------------------------------------------------------
3. SEC Use Only
--------------------------------------------------------------------------------
4. Citizenship or Place of Organization:
Delaware
--------------------------------------------------------------------------------
5. Sole Voting Power: 834,492
Number of
shares -------------------------------------------------
Beneficially 6. Shared Voting Power: -0-
Owned By
Each -------------------------------------------------
Reporting 7. Sole Dispositive Power: 834,492
Person
With -------------------------------------------------
8. Shared Dispositive Power: -0-
--------------------------------------------------------------------------------
9. Aggregate Amount Beneficially Owned by Each Reporting Person:
834,492
--------------------------------------------------------------------------------
10. Check Box if the Aggregate Amount in Row (9) Excludes Certain shares:
[_]
--------------------------------------------------------------------------------
11. Percent of Class Represented by Amount in Row (9):
6.88%
--------------------------------------------------------------------------------
12. Type of Reporting Person:
OO
--------------------------------------------------------------------------------
CUSIP No. 640671103 Schedule 13G Page 10
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1. Name of Reporting Person
S.S. or I.R.S. Identification No.:
Bruce Wasserstein
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2. Check the Appropriate Box if a Member of a Group:
(a) [_]
(b) [X]
--------------------------------------------------------------------------------
3. SEC Use Only
--------------------------------------------------------------------------------
4. Citizenship or Place of Organization:
United States
--------------------------------------------------------------------------------
5. Sole Voting Power: 1,928,564
Number of
shares -------------------------------------------------
Beneficially 6. Shared Voting Power: -0-
Owned By
Each -------------------------------------------------
Reporting 7. Sole Dispositive Power: 1,928,564
Person
With -------------------------------------------------
8. Shared Dispositive Power: -0-
--------------------------------------------------------------------------------
9. Aggregate Amount Beneficially Owned by Each Reporting Person:
1,928,564
--------------------------------------------------------------------------------
10. Check Box if the Aggregate Amount in Row (9) Excludes Certain shares:
[_]
--------------------------------------------------------------------------------
11. Percent of Class Represented by Amount in Row (9):
15.91%
--------------------------------------------------------------------------------
12. Type of Reporting Person:
IN
--------------------------------------------------------------------------------
CUSIP No. 640671103 Schedule 13G Page 11
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SCHEDULE 13G
This Schedule 13G is filed by the undersigned with respect to
the shares of common stock, par value $.001 per share (the "Common Stock"), of
Nephros, Inc. (the "Company").
Item 1. (a) NAME OF ISSUER
Nephros, Inc.
(b) ADDRESS OF ISSUER'S PRINCIPAL EXECUTIVE OFFICES
3960 Broadway
New York, New York 10032
Item 2. (a) NAMES OF PERSONS FILING
WPPN, LP ("WPPN");
Cypress Management Partners, LLC ("CMP");
Cypress Capital Assets, L.P. ("CCA");
Cypress Capital Advisors, LLC ("CC Advisors");
Wasserstein SBIC Ventures II, LP ("WV SBIC");
Wasserstein Levered Venture Partners II, LLC ("Levered");
Wasserstein Investments LLC ("WI");
Wasserstein Holdings, LLC ("WH"); and
Bruce Wasserstein ("BW") and, together with WPPN, CMP, CCA,
CC Advisors, WV SBIC, Levered, WI, and WH, the "Reporting
Persons".
The Reporting Persons are making this single, joint filing
because they may be deemed to constitute a "group" within
the meaning of Section 13(d)(3) of the Act, although neither
the fact of this filing nor anything contained herein shall
be deemed to be an admission by the Reporting Persons that
such a group exists.
(b) ADDRESS OF PRINCIPAL BUSINESS OFFICE
1301 Avenue of the Americas
New York, NY 10019
(c) CITIZENSHIP
WPPN - Delaware
CMP - Delaware
CCA - Delaware
CC Advisors - Delaware
CUSIP No. 640671103 Schedule 13G Page 12
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WV SBIC - Delaware
Levered - Delaware
WI - Delaware
WH - Delaware
BW - United States
(d) TITLE OF CLASS OF SECURITIES
Common Stock, par value $.001 per share (the "Common Stock")
(e) CUSIP NUMBER
640671103
Item 3. This Schedule 13G Statement is not being filed pursuant to
Rule 13d-1(b) or Rule 13d-2(b) or (c).
Item 4. (a) - (b)
WPPN
WPPN beneficially owns an aggregate of 918,801 shares of
Common Stock, which represents approximately 7.58% of the
issued and outstanding shares of Common Stock.
CMP
As the general partner of WPPN, CMP beneficially owns an
aggregate of 918,801 shares of Common Stock, which
represents approximately 7.58% of the issued and outstanding
shares of Common Stock.
CCA
As the sole member of CMP, CCA beneficially owns an
aggregate of 918,801 shares of Common Stock, which
represents approximately 7.58% of the issued and outstanding
shares of Common Stock.
CC Advisors
As the general partner of CCA, CC Advisors may be deemed to
beneficially own an aggregate of 918,801 shares of Common
Stock, which represents approximately 7.58% of the issued
and outstanding shares of Common Stock.
CUSIP No. 640671103 Schedule 13G Page 13
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WV SBIC
WV SBIC beneficially owns an aggregate of 829,104 shares of
Common Stock, which represents approximately 6.84% of the
issued and outstanding shares of Common Stock.
Levered
As the general partner of WV SBIC, Levered beneficially owns
an aggregate of 829,104 shares of Common Stock, which
represents approximately 6.84% of the issued and outstanding
shares of Common Stock.
WI
As the sole member of Levered and the controlling person of
Wasserstein & Co., L.P., WI beneficially owns an aggregate
of 834,492 shares of Common Stock consisting of 829,104
shares held by WV SBIC and 5,388 shares held by WV II
Employee Partnership, LLC, the managing member of which is
Wasserstein & Co., L.P. This represents approximately 6.88%
of the issued and outstanding shares of Common Stock.
WH
As the sole member of WI, WH beneficially owns an aggregate
of 834,492 shares of Common Stock, which represents
approximately 6.88% of the issued and outstanding shares of
Common Stock.
BW
Because he may be deemed to control CC Advisors, WH and BW
Employee Holdings, LLC, BW may be deemed to beneficially own
1,928,564 shares of Common Stock, consisting of (i) 918,801
shares directly held by WPPN, (ii) 829,104 shares directly
held by WV SBIC, (III) 5,388 shares held directly by WV
Employee Partnership, LLC and (iv) 175,271 shares held
directly by BW Employee Holdings, LLC. This represents
15.91% of the issued and outstanding shares of Common Stock.
BW disclaims beneficial ownership of these shares except for
his pecuniary interest in 29,446 shares.
(c)
WPPN
WPPN has the sole power to vote or direct the vote of
918,801 shares of Common Stock and the sole power to dispose
or to direct the disposition of 918,801 shares of Common
Stock.
CUSIP No. 640671103 Schedule 13G Page 14
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CMP
As the general partner of WPPN, CMP has the sole power to
vote or direct the vote of 918,801 shares of Common Stock
and the sole power to dispose or to direct the disposition
of 918,801 shares of Common Stock.
CCA
As the sole member of CMP, CCA, has the sole power to vote
or direct the vote of 918,801 shares of Common Stock and the
sole power to dispose or to direct the disposition of
918,801 shares of Common Stock.
CC Advisors
As the general partner of CCA Assets, CC Advisors has the
sole power to vote or direct the vote of 918,801 shares of
Common Stock and the sole power to dispose or to direct the
disposition of 918,801 shares of Common Stock.
WV SBIC
WV SBIC has the sole power to vote or direct the vote of
829,104 shares of Common Stock and the sole power to dispose
of to direct the disposition of 829,104 shares of Common
Stock.
Levered
As the general partner of WV SBIC, Levered has the sole
power to vote or direct the vote of 829,104 shares of Common
Stock and the sole power to dispose or to direct the
disposition of 829,104 shares of Common Stock.
WI
As the sole member of Levered and the controlling person of
Wasserstein & Co., L.P. WI has the sole power to vote or
direct the vote of 834,492 shares of Common Stock and the
sole power to dispose or to direct the disposition of
834,492 shares of Common Stock.
WH
As the sole member of WI, WH has the sole power to vote or
direct the vote of 834,492 shares of Common Stock and the
sole power to dispose or direct the disposition of 834,492
shares of Common Stock.
CUSIP No. 640671103 Schedule 13G Page 15
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BW
Because he may be deemed to control CC Advisors, WH and BW
Employee Holdings, LLC, BW may be deemed to have sole power
to vote or direct the vote of 1,928,564 shares of Common
Stock and the sole power to dispose or direct the
disposition of 1,928,564 shares of Common Stock. BW
disclaims beneficial ownership of these shares except for
his pecuniary interest in 29,446 shares.
Item 5. OWNERSHIP OF FIVE PERCENT OR LESS OF A CLASS
Not applicable.
Item 6. OWNERSHIP OF MORE THAN FIVE PERCENT ON BEHALF OF ANOTHER
PERSON
Not applicable.
Item 7. IDENTIFICATION AND CLASSIFICATION OF SUBSIDIARY WHICH
ACQUIRED THE SECURITY BEING REPORTED ON BY THE PARENT
HOLDING COMPANY
Not applicable.
Item 8. IDENTIFICATION AND CLASSIFICATION OF MEMBERS OF THE GROUP
Not applicable.
Item 9. NOTICE OF DISSOLUTION OF GROUP
Not applicable.
Item 10. CERTIFICATION
Not applicable.
CUSIP No. 640671103 Schedule 13G Page 16
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SIGNATURES
After reasonable inquiry and to the best of our knowledge and belief,
we certify that the information set forth in this statement is true, complete
and correct.
Dated as of February 11, 2005
WPPN, L.P.
By: Cypress Management Partners, LLC
its General Partner
By: Cypress Capital Assets, LP
its Sole Member
By: Cypress Capital Advisors, LLC
its General Partner
By: /s/ Robert Mersten
---------------------------------
Name: Robert Mersten
Title: Vice President and Secretary
CYPRESS MANAGEMENT PARTNERS, LLC
By: Cypress Capital Assets, LP
its Sole Member
By: Cypress Capital Advisors, LLC
its General Partner
By: /s/ Robert Mersten
---------------------------------
Name: Robert Mersten
Title: Vice President and Secretary
CYPRESS CAPITAL ASSETS, LP
By: Cypress Capital Advisors, LLC
its General Partner
By: /s/ Robert Mersten
---------------------------------
Name: Robert Mersten
Title: Vice President and Secretary
CUSIP No. 640671103 Schedule 13G Page 17
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CYPRESS CAPITAL ADVISORS, LLC
By: /s/ Robert Mersten
---------------------------------
Name: Robert Mersten
Title: Vice President and Secretary
WASSERSTEIN SBIC VENTURES II, LP
By: Wasserstein Levered Venture
Partners II, LLC
its General Partner
By: Wasserstein Investments, LLC
its Sole Member
By: Wasserstein Holdings, LLC
its Sole Member
By: /s/ Townsend Ziebold
---------------------------------
Name: Townsend Ziebold
Title: President
WASSERSTEIN LEVERED VENTURE PARTNERS II, LLC
By: Wasserstein Investments, LLC
its Sole Member
By: Wasserstein Holdings, LLC
its Sole Member
By: /s/ Townsend Ziebold
---------------------------------
Name: Townsend Ziebold
Title: President
CUSIP No. 640671103 Schedule 13G Page 18
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WASSERSTEIN INVESTMENTS, LLC
By: Wasserstein Holdings, LLC
its Sole Member
By: /s/ Robert Mersten
---------------------------------
Name: Robert Mersten
Title: Vice President and Secretary
WASSERSTEIN HOLDINGS, LLC
By: /s/ Robert Mersten
---------------------------------
Name: Robert Mersten
Title: Vice President and Secretary
* /s/ Townsend Ziebold
-----------------------
W. Townsend Ziebold, Jr. for Bruce Wasserstein*
* Pursuant to a Power of Attorney filed
herewith as Exhibit 2.