UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
SCHEDULE 13D
Under the Securities Exchange Act of 1934
(Amendment No. 2)*
CARDIOTHORACIC SYSTEMS, INC.
----------------------------
(Name of Issuer)
Common Stock, par value $0.001
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(Title of Class of Securities)
14190710
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(CUSIP Number)
John E. Runnells
The Vertical Group, L.P.
18 Bank Street
Summit, N.J. 07901
----------------------------
(Name, Address and Telephone Number of Person Authorized to
Receive Notices and Communications)
August 25, 1997
----------------------------
(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 which is the subject of this Schedule 13D, and is filing this
schedule because of Rule 13d-1(b)(3) or (4), check the following box |_|.
Check the following box if a fee is being paid with the statement |_|. (A fee is
not required only if the reporting person: (1) has a previous statement on file
reporting beneficial ownership of more than five percent of the class of
securities described in Item 1; and (2) has filed no amendment subsequent
thereto reporting beneficial ownership of five percent or less of such class.)
(See Rule 13d-7.)
Note: Six copies of this statement, including all exhibits, should be filed with
the Commission. See Rule 13d-1(a) for other parties to whom copies are to be
sent.
* 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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SCHEDULE 13D
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CUSIP NO. 14190710 Page 2 of 6 Pages
- --------------------------------------------------------------------------------
1 NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
The Vertical Fund Associates, L.P.
- -----------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) |_|
(b) |_|
- -----------------------------------------------------------------------------
3 SEC USE ONLY
- -----------------------------------------------------------------------------
4 SOURCE OF FUNDS*
WC
- -----------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS |_|
IS REQUIRED PURSUANT TO ITEMS 2(d) or 2(e)
- -----------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
Delaware
- --------------------------------------------------------------------------------
NUMBER OF 7 SOLE VOTING POWER
SHARES 475,000
BENEFICIALLY --------------------------------------------------
OWNED BY 8 SHARED VOTING POWER
EACH --------------------------------------------------
REPORTING
PERSON WITH 9 SOLE DISPOSITIVE POWER
475,000
--------------------------------------------------
10 SHARED DISPOSITIVE POWER
--------------------------------------------------
- --------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
475,000
- --------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11)
EXCLUDES CERTAIN SHARES |_|
- --------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) 3.5%
- --------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
PN
================================================================================
*SEE INSTRUCTIONS BEFORE FILLING OUT!
INCLUDE BOTH SIDES OF THE COVER PAGE, RESPONSES TO ITEMS 1-7
(INCLUDING EXHIBITS) OF THE SCHEDULE, AND THE SIGNATURE ATTESTATION
-2-
<PAGE>
SCHEDULE 13D
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CUSIP NO. 14190710 Page 3 of 6 Pages
- --------------------------------------------------------------------------------
1 NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
Vertical Life Sciences, L.P.
- --------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) |_|
(b) |_|
- --------------------------------------------------------------------------------
3 SEC USE ONLY
- --------------------------------------------------------------------------------
4 SOURCE OF FUNDS*
WC
- --------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS |_|
IS REQUIRED PURSUANT TO ITEMS 2(d) or 2(e)
- --------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
Delaware
- -------------------------------------------------------------------------------
NUMBER OF 7 SOLE VOTING POWER
SHARES 20,000
BENEFICIALLY -------------------------------------------------
OWNED BY 8 SHARED VOTING POWER
EACH -------------------------------------------------
REPORTING 9 SOLE DISPOSITIVE POWER
PERSON WITH 20,000
-------------------------------------------------
10 SHARED DISPOSITIVE POWER
-------------------------------------------------
- -------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
20,000
- -------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11)
EXCLUDES CERTAIN SHARES |_|
- -------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) 0.2%
- -------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
PN
===============================================================================
*SEE INSTRUCTIONS BEFORE FILLING OUT!
INCLUDE BOTH SIDES OF THE COVER PAGE, RESPONSES TO ITEMS 1-7
(INCLUDING EXHIBITS) OF THE SCHEDULE, AND THE SIGNATURE ATTESTATION
-3-
<PAGE>
SCHEDULE 13D
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CUSIP NO. Page 4 of 6 Pages
- --------------------------------------------------------------------------------
1 NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
Stephen D. Baksa
- --------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) |_|
(b) |_|
- --------------------------------------------------------------------------------
3 SEC USE ONLY
- --------------------------------------------------------------------------------
4 SOURCE OF FUNDS*
PF
- --------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS |_|
IS REQUIRED PURSUANT TO ITEMS 2(d) or 2(e)
- --------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
U.S.A.
- --------------------------------------------------------------------------------
NUMBER OF 7 SOLE VOTING POWER
SHARES 20,000
BENEFICIALLY ---------------------------------------------------
OWNED BY 8 SHARED VOTING POWER
EACH 495,00
REPORTING --------------------------------------------------
PERSON WITH 9 SOLE DISPOSITIVE POWER
20,000
--------------------------------------------------
10 SHARED DISPOSITIVE POWER
495,000
--------------------------------------------------
- -------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
515,000
- -------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11)
EXCLUDES CERTAIN SHARES |_|
- --------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) 3.8
- --------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
IN
================================================================================
*SEE INSTRUCTIONS BEFORE FILLING OUT!
INCLUDE BOTH SIDES OF THE COVER PAGE, RESPONSES TO ITEMS 1-7
(INCLUDING EXHIBITS) OF THE SCHEDULE, AND THE SIGNATURE ATTESTATION
-4-
<PAGE>
This Amendment No. 2 to Statement on Schedule 13D ("Statement") with
respect to the Common Stock, par value $0.001 per share, of Cardiothoracic
Systems, Inc. (the "Issuer") (such class of stock being hereinafter referred to
as "CTSI Common Stock"), is filed jointly by The Vertical Fund Associates, L.P.
("Associates") and Vertical Life Sciences, L.P. ("Life Sciences") (together, the
"Partnerships") and Stephen D. Baksa ("Baksa") (collectively, the "Reporting
Persons") for the purpose of amending Item 3 and Item 5 of the Statement to read
in their entirety as follows:
Item 3. Source and Amount of Funds or Other Consideration.
As of August 28, 1997, Associates owned 475,000 shares of CTSI Common
Stock, which it acquired at an aggregate cost of approximately $475,000, Life
Sciences owned 20,000 shares of CTSI Common Stock, which it acquired at an
aggregate cost of approximately $204,250, and Baksa owned 20,000 shares of CTSI
Common Stock, which he acquired at an aggregate cost of approximately $210,000.
All of the 515,000 shares of CTSI Common Stock collectively owned by the
Reporting Persons are hereinafter referred to as the "Shares". The source of
funds used by each Partnership to acquire the Shares owned by it was such
Partnership's internal cash funds and by Baksa was his personal funds.
Item 5. Interest in Securities of the Issuer.
(a) and (b) Of the total Shares beneficially owned by the Reporting
Persons, 475,000 shares (approximately 3.5% of the total outstanding) are
directly and beneficially owned by Associates, 20,000 shares (approximately 0.2%
of the total outstanding) are directly and beneficially owned by Life Sciences,
and 20,000 shares (approximately 0.2% of the total outstanding) are directly and
beneficially owned by Baksa. Subject to the next succeeding paragraph, each of
the Reporting Persons has the sole power to vote or direct the vote and to
dispose or direct the disposition of the Shares directly and beneficially owned
by such person.
In addition, Group may be deemed to be the beneficial owner of all
495,000 Shares (approximately 3.7% of the total outstanding) collectively owned
by the two Partnerships because, as the sole general partner of both
Partnerships, Group has the sole power to vote or direct the vote and to dispose
or direct the disposition of such Shares, and each of the Individuals (including
Baksa) may be deemed to be the beneficial owner of all 495,000 Shares
(approximately 3.7% of the total outstanding) collectively owned by the two
Partnerships because as a general partner of Group (which is the sole general
partner of both Partnerships), each such Individual shares the power (which may
be exercised by any one of such Individuals acting alone) to vote or direct the
vote and to dispose or direct the disposition of such Shares.
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<PAGE>
(c) The chart below lists all transactions in CTSI Common Stock during
to past 60 days by any of the persons identified in response to paragraph (a) of
this Item:
Person
Effecting Date of Number of Price per
Transaction Transaction Shares Share
- ----------- ------------ --------- ---------
Associates August 11, 1997 100,000 $12.55
Associates August 25, 1997 75,000 $11.83
All of the foregoing transactions represented sales of CTSI Common Stock on the
open market.
(d) Not applicable.
(e) The Reporting Persons ceased to own collectively at least five
percent (5%) of the outstanding shares of CTSI Common Stock on August 11, 1997.
Signature.
After reasonable inquiry and to the best of their knowledge and belief,
the undersigned certify that the information set forth in this Amendment No. 2
is true, complete and correct.
BY: THE VERTICAL GROUP, L.P.
General Partner
August 28, 1997
By: /s/ John E. Runnells
---------------------------
John E. Runnells
General Partner
VERTICAL LIFE SCIENCES, L.P.
BY: THE VERTICAL GROUP, L.P.
General Partner
By: /s/ John E. Runnells
----------------------------
John E. Runnells
General Partner
/s/ Stephen D. Baksa
-----------------------------
Stephen D. Baksa
-6-
<PAGE>
