U.S. SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 4
STATEMENT OF CHANGES IN BENEFICIAL OWNERSHIP
Filed pursuant to Section 16(a) of the Securities Exchange Act of 1934,
Section 17(a) of the Public Utility Holding Company Act of 1935 or
Section 30(f) of the Investment Company Act of 1940
[X] Check this box if no longer subject of Section 16. Form 4 or Form 5
obligations may continue. See Instruction 1(b).
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1. Name and Address of Reporting Person*
The Goldman Sachs Group, Inc. (as successor to The
Goldman Sachs Group, L.P.)**
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(Last) (First) (Middle)
85 Broad Street
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(Street)
New York, New York 10004
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(City) (State) (Zip)
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2. Issuer Name and Ticker or Trading Symbol
Recovery Engineering, Inc. (REIN)
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3. IRS or Social Security Number of Reporting Person (Voluntary)
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4. Statement for Month/Year
September 1999
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5. If Amendment, Date of Original (Month/Year)
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6. Relationship of Reporting Person to Issuer
(Check all applicable)
[_] Director [X] 10% Owner
[_] Officer (give title below) [_] Other (specify below)
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7. Individual or Joint/Group Filing (Check applicable line)
[_] Form filed by one Reporting Person
[X] Form filed by more than one Reporting Person
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<PAGE>
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Table I -- Non-Derivative Securities Acquired, Disposed of,
or Beneficially Owned
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<TABLE>
<CAPTION>
6.
4. 5. Owner-
Securities Acquired (A) or Amount of ship
3. Disposed of (D) Securities Form: 7.
Transaction (Instr. 3, 4 and 5) Beneficially Direct Nature of
2. Code ------------------------------- Owned at End (D) or Indirect
1. Transaction (Instr. 8) (A) of Month Indirect Beneficial
Title of Security Date ------------ Amount or Price (Instr. 3 (I) Ownership
(Instr. 3) (Month/Day/Year) Code V (D) and 4) (Instr.4) (Instr. 4)
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<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Common Stock 9/17/99 M 4,000 A $25.82 0 I 01
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Common Stock 9/17/99 M 4,000 A $24.01 0 I 01
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Common Stock 9/17/99 M 4,000 A $5.84 0 I 02
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Common Stock 9/17/99 M 1,000 A $11.26 0 I 02
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Common Stock 9/17/99 C 1,010,001 A $14.85 0 I 03
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Common Stock 9/29/99 U 1,023,101 D $35.25 0 04 04
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<FN>
* If the Form is filed by more than one Reporting Person, see Instruction 4(b)(v).
** As of May 7, 1999, The Goldman Sachs Group, L.P. was merged with and into The Goldman Sachs Group, Inc., with The Goldman Sachs
Group, Inc. as the surviving entity.
Reminder: Report on a separate line for each class of securities beneficially owned directly or indirectly.
</FN>
</TABLE>
(Over)
<PAGE>
FORM 4 (continued)
Table II -- Derivative Securities Acquired, Disposed of, or Beneficially Owned
(e.g., puts, calls, warrants, options, convertible securities)
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<TABLE>
<CAPTION>
10.
9. Owner-
Number ship
of Form
2. Deriv- of
Conver- 5. 7. ative Deriv- 11.
sion Number of Title and Amount Secur- ative Nature
or Derivative 6. of Underlying 8. ities Secur- of
Exer- 4. Securities Date Securities Price Bene- ity: In-
cise 3. Trans- Acquired (A) Exercisable and (Instr. 3 and 4) of ficially Direct direct
Price Trans- action or Disposed Expiration Date ---------------- Deriv- Owned (D) or Bene-
1. of action Code of(D) (Month/Day/Year) Amount ative at End In- ficial
Title of Deriv- Date (Instr. (Instr. 3, ---------------- or Secur- of direct Owner-
Derivative ative (Month/ 8) 4, and 5) Date Expira- Number ity Month (I) ship
Security Secur- Day/ ------ ------------ Exer- tion of (Instr. (Instr. (Instr. (Instr.
(Instr. 3) ity Year) Code V (A) (D) cisable Date Title Shares 5) 4) 4) 4)
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<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Stock Option $25.82 9/17/99 M 4,000 10/23/98 4/23/03 Common 4,000 0 I 01
(right to buy) Stock
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Stock Option $24.01 9/17/99 M 4,000 8/3/98 2/23/03 Common 4,000 0 I 01
(right to buy) Stock
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Stock Option $5.84 9/17/99 M 4,000 4/24/97 4/24/02 Common 4,000 0 I 02
(right to buy) Stock
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Stock Option $11.26 9/17/99 M 1,000 7/19/96 7/19/01 Common 1,000 0 I 02
(right to buy) Stock
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5% Convertible $14.85 9/29/99 C 03 3/31/97 7/19/01 Common 1,010,101 0 I 03
Notes due 2003 Stock
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</TABLE>
<PAGE>
Instruction 4(b)(v) list of other Reporting Persons:
This statement is being filed by GS Capital Partners II, L.P. ("GSCP"), GS
Capital Partners II Offshore, L.P. ("GSCP II Offshore"), GS Capital Partners II
(Germany) Civil Law Partnership ("GSCP II Germany" and, together with GSCP and
GSCP II Offshore, "GSCP II"), GS Advisors, L.P. ("GS Advisors"), GS Advisors II
(Cayman), L.P. ("GS Advisors Cayman"), Goldman, Sachs & Co. oHG ("GS oHG"),
Stone Street Fund 1996, L.P. ("Stone Street 1996"), Bridge Street Fund 1996,
L.P. ("Bridge Street 1996" and, together with Stone Street 1996, the
"Stone/Bridge Funds"), Stone Street Empire Corp. ("Empire Corp."), Goldman,
Sachs & Co. ("Goldman Sachs") and The Goldman Sachs Group, Inc. ("GS Group" and,
together with GSCP, GSCP II Offshore, GSCP II Germany, GS Advisors, GS Advisors
Cayman, GS oHG, Stone Street 1996, Bridge Street 1996, Empire Corp. and Goldman
Sachs, the "Reporting Persons"). The principal business address of each of
Goldman Sachs, GS Group, GSCP, Stone Street 1996, Bridge Street 1996, Empire
Corp. and GS Advisors is 85 Broad Street, New York, New York 10004. The
principal business address of each of GSCP II Offshore and GS Advisors Cayman is
c/o Maples and Calder, P.O. Box 309, Grand Cayman, Cayman Islands. The principal
business address of each of GSCP II Germany and GS oHG is MesseTurm
Friedrich-Ebert-Anlage 49, 60308 Frankfurt am Main, Germany.
Explanation of Responses:
01: These options and the shares issued upon their exercise were granted under
the Recovery Engineering, Inc. 1993 Director Stock Option Plan to a vice
president of Goldman Sachs in his capacity as a director of the Issuer. That
person has an agreement with GS Group pursuant to which he held the stock
options for the benefit of GS Group.
02: These options and the shares issued upon their exercise were granted under
the Recovery Engineering, Inc. 1993 Director Stock Option Plan to a former
managing director of Goldman Sachs in his capacity as a director of the Issuer.
That person has an agreement with GS Group pursuant to which he held the stock
options for the benefit of GS Group.
03: Goldman Sachs and GS Group may be deemed to own beneficially and indirectly
up to 1,010,101 shares of common stock of the Issuer ("Common Stock") by reason
of the ownership by GSCP II and the Stone/Bridge Funds (collectively, the
"Limited Partnerships") of $15,000,000 principal amount in 5% Convertible Notes
due 2003 (the "Notes"), which were converted into 1,010,101 shares of Common
Stock, in the aggregate. Goldman Sachs is an indirect wholly owned subsidiary of
GS Group. Affiliates of Goldman Sachs and GS Group are the general partner,
managing partner or managing general partner of the Limited Partnerships.
Goldman Sachs is the investment manager of GSCP II. Goldman Sachs and GS Group
each disclaim beneficial ownership of the shares of Common Stock beneficially
owned by the Limited Partnerships except to the extent of their pecuniary
interest therein.
<PAGE>
GSCP may be deemed to own beneficially and directly, and its general partner, GS
Advisors, may be deemed to own beneficially and indirectly, 633,766 shares of
Common Stock by reason of the ownership by GSCP of $9,411,420 principal amount
in Notes which were converted into 633,766 shares of Common Stock, in the
aggregate. GS Advisors disclaims beneficial ownership of the securities reported
herein except to the extent of its pecuniary interest therein.
GSCP II Offshore may be deemed to own beneficially and directly, and its general
partner, GS Advisors Cayman, may be deemed to own beneficially and indirectly,
251,948 shares of Common Stock by reason of the ownership by GSCP III Offshore
of $3,741,435 principal amount in Notes, which were converted into 251,948
shares of Common Stock, in the aggregate. GS Advisors Cayman disclaims
beneficial ownership of the securities reported herein except to the extent of
its pecuniary interest therein.
GSCP II Germany may be deemed to own beneficially and directly, and its managing
partner, GS oHG, may be deemed to own beneficially and indirectly, 23,377 shares
of Common Stock by reason of the ownership by GSCP II Germany of $347,145
principal amount in Notes, which were converted into 23,377 shares of Common
Stock, in the aggregate. GS oHG disclaims beneficial ownership of the securities
reported herein except to the extent of its pecuniary interest therein.
Stone Street 1996 may be deemed to own beneficially and directly, and its
general partner, Empire Corp., may be deemed to own beneficially and indirectly,
60,191 shares of Common Stock by reason of the ownership by Stone Street 1996 of
$893,835 principal amount in Notes, which were converted into 60,191 shares of
Common Stock, in the aggregate. Empire Corp. disclaims beneficial ownership of
the securities reported herein except to the extent of its pecuniary interest
therein.
Bridge Street 1996 may be deemed to own beneficially and directly, and its
managing general partner, Empire Corp., may be deemed to own beneficially and
indirectly, 40,819 shares of Common Stock by reason of the ownership by Bridge
Street 1996 of $606,165 principal amount in Notes, which were converted into
40,819 shares of Common Stock, in the aggregate. Empire Corp. disclaims
beneficial ownership of the securities reported herein except to the extent of
its pecuniary interest therein.
04: The Reporting Persons tendered all of their Common Stock to Tenzing, Inc.
("Tenzing"), a direct wholly owned subsidiary of The Procter & Gamble Company,
pursuant to Tenzing's offer to purchase for cash all of the outstanding shares
of Common Stock. 1,010,101 shares of Common Stock were tendered by the Limited
Partnerships and 13,000 shares of Common Stock were tendered by directors of the
Issuer on behalf of GS Group.
<PAGE>
***Signatures:
GS CAPITAL PARTNERS II, L.P.
By: /s/ Hans L. Reich
---------------------------------
Name: Hans L. Reich
Title: Attorney-in-fact
GS ADVISORS, L.P.
By: /s/ Hans L. Reich
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Name: Hans L. Reich
Title: Attorney-in-fact
GS CAPITAL PARTNERS II OFFSHORE, L.P.
By: /s/ Hans L. Reich
---------------------------------
Name: Hans L. Reich
Title: Attorney-in-fact
GS ADVISORS II (CAYMAN), L.P.
By: /s/ Hans L. Reich
---------------------------------
Name: Hans L. Reich
Title: Attorney-in-fact
GS CAPITAL PARTNERS II (GERMANY) CIVIL LAW PARTNERSHIP
(with limitation of liability)
By: /s/ Hans L. Reich
---------------------------------
Name: Hans L. Reich
Title: Attorney-in-fact
GOLDMAN, SACHS & CO. oHG
By: /s/ Hans L. Reich
---------------------------------
Name: Hans L. Reich
Title: Attorney-in-fact
<PAGE>
GOLDMAN, SACHS & CO.
By: /s/ Hans L. Reich
---------------------------------
Name: Hans L. Reich
Title: Attorney-in-fact
THE GOLDMAN SACHS GROUP, Inc.
By: /s/ Hans L. Reich
---------------------------------
Name: Hans L. Reich
Title: Attorney-in-fact
STONE STREET FUND 1996, L.P.
By: /s/ Hans L. Reich
---------------------------------
Name: Hans L. Reich
Title: Attorney-in-fact
BRIDGE STREET FUND 1996, L.P.
By: /s/ Hans L. Reich
---------------------------------
Name: Hans L. Reich
Title: Attorney-in-fact
STONE STREET EMPIRE CORP.
By: /s/ Hans L. Reich
---------------------------------
Name: Hans L. Reich
Title: Attorney-in-fact
Date: October 12, 1999
**Intentional misstatements or omissions of facts constitute Federal Criminal
Violations.
See 18 U.S.C. 1001 and 15 U.S.C. 78ff(a).
Note. File three copies of this Form, one of which must be manually signed. If
space is insufficient, see Instruction 6 for procedure.
