ThZeal - The Zeal

SC 13G 1 sc13g_nephros.txt SCHEDULE 13G 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 -------------------------------------------------------------------------------- 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 -------------------------------------------------------------------------------- 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 3 -------------------------------------------------------------------------------- 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 -------------------------------------------------------------------------------- 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 -------------------------------------------------------------------------------- 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 -------------------------------------------------------------------------------- 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 -------------------------------------------------------------------------------- 1. Name of Reporting Person S.S. or I.R.S. Identification No.: Bruce Wasserstein -------------------------------------------------------------------------------- 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 -------------------------------------------------------------------------------- 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 -------------------------------------------------------------------------------- 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 -------------------------------------------------------------------------------- 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 -------------------------------------------------------------------------------- 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 -------------------------------------------------------------------------------- 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 -------------------------------------------------------------------------------- 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 -------------------------------------------------------------------------------- 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 -------------------------------------------------------------------------------- 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.