UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
S C H E D U L E 13D
Under the Securities Exchange Act of 1934
(Amendment No. )(1)
U.S. WIRELESS DATA, INC.
(Name of Issuer)
COMMON STOCK, NO PAR VALUE
(Title of Class of Securities)
912899101
(CUSIP Number)
Copy to:
Sandler Capital Management Michael R. Reiner, Esq.
767 Fifth Avenue Morrison Cohen Singer & Weinstein, LLP
New York, New York 10153 750 Lexington Avenue
Telephone (212) 754-8100 New York, New York 10022
Telephone (212) 735-8600
(Name, Address and Telephone Number of Person
Authorized to Receive Notices and Communications)
September 7, 2000
(Date of Event which Requires Filing this Statement)
If the filing person has previously filed a statement on Schedule 13G to report
the acquisition that is the subject of this Schedule 13D, and is filing this
schedule because of Rule 13d-1(e), 13d-1(f) or 13d-(g), check the following box
|_|.
NOTE: Schedules filed in paper format shall include a signed original and five
copies of the schedule, including all exhibits. See Rule 13d-7(b) for other
parties to whom copies are to be sent.
(Continued on following page(s))
--------
(1) 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 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).
<PAGE>
CUSIP
No. 912899101 13D
================================================================================
1 Names of Reporting Persons
I.R.S. Identification Nos. of Above Persons (Entities Only)
Sandler Capital Partners IV, L.P.
-------------------------------------------------------------------------------
2 Check the Appropriate Box if a Member of a Group*
(a) |_|
(b) |_|
--------------------------------------------------------------------------------
3 SEC Use Only
--------------------------------------------------------------------------------
4 Source of Funds* WC, OO
--------------------------------------------------------------------------------
5 Check Box if Disclosure of Legal Proceedings is Required
Pursuant to Item 2(d) or 2(e) |_|
--------------------------------------------------------------------------------
6 Citizenship or Place of Organization Delaware
--------------------------------------------------------------------------------
7 Sole Voting Power
Number of 2,955,848 shares 8.4%
Shares ---------------------------------------------------------------
Beneficially 8 Shared Voting Power
Owned By 1,210,840 shares 3.6%
Each ---------------------------------------------------------------
Reporting 9 Sole Dispositive Power
Person 2,955,848 shares 8.4%
With ---------------------------------------------------------------
10 Shared Dispositive Power
1,210,840 shares 3.6%
--------------------------------------------------------------------------------
11 Aggregate Amount Beneficially Owned By Each Reporting Person
4,166,688 shares
--------------------------------------------------------------------------------
12 Check Box if the Aggregate Amount in Row (11) excludes Certain Shares*
|_|
--------------------------------------------------------------------------------
13 Percent of Class Represented by Amount in Row (11)
11.4%
--------------------------------------------------------------------------------
14 Type of Reporting Person*
PN
================================================================================
*SEE INSTRUCTIONS BEFORE FILLING OUT!
- 2 of 28 -
<PAGE>
CUSIP
No. 912899101 13D
================================================================================
1 Names of Reporting Persons
I.R.S. Identification Nos. of Above Persons (Entities Only)
Sandler Capital Partners IV FTE, L.P.
-------------------------------------------------------------------------------
2 Check the Appropriate Box if a Member of a Group*
(a) |_|
(b) |_|
--------------------------------------------------------------------------------
3 SEC Use Only
--------------------------------------------------------------------------------
4 Source of Funds* WC, OO
--------------------------------------------------------------------------------
5 Check Box if Disclosure of Legal Proceedings is Required
Pursuant to Item 2(d) or 2(e) |_|
--------------------------------------------------------------------------------
6 Citizenship or Place of Organization Delaware
--------------------------------------------------------------------------------
7 Sole Voting Power
Number of 1,210,840 shares 3.6%
Shares ---------------------------------------------------------------
Beneficially 8 Shared Voting Power
Owned By 2,955,848 shares 8.4%
Each ---------------------------------------------------------------
Reporting 9 Sole Dispositive Power
Person 1,210,840 shares 3.6%
With ---------------------------------------------------------------
10 Shared Dispositive Power
2,955,848 shares 8.4%
--------------------------------------------------------------------------------
11 Aggregate Amount Beneficially Owned By Each Reporting Person
4,166,688 shares
--------------------------------------------------------------------------------
12 Check Box if the Aggregate Amount in Row (11) excludes Certain Shares*
|_|
--------------------------------------------------------------------------------
13 Percent of Class Represented by Amount in Row (11)
11.4%
--------------------------------------------------------------------------------
14 Type of Reporting Person*
PN
================================================================================
*SEE INSTRUCTIONS BEFORE FILLING OUT!
- 3 of 28 -
<PAGE>
CUSIP
No. 912899101 13D
================================================================================
1 Names of Reporting Persons
I.R.S. Identification Nos. of Above Persons (Entities Only)
Sandler Investment Partners, L.P.
-------------------------------------------------------------------------------
2 Check the Appropriate Box if a Member of a Group*
(a) |_|
(b) |_|
--------------------------------------------------------------------------------
3 SEC Use Only
--------------------------------------------------------------------------------
4 Source of Funds* OO
--------------------------------------------------------------------------------
5 Check Box if Disclosure of Legal Proceedings is Required
Pursuant to Item 2(d) or 2(e) |_|
--------------------------------------------------------------------------------
6 Citizenship or Place of Organization Delaware
--------------------------------------------------------------------------------
7 Sole Voting Power
Number of 0 shares 0%
Shares ---------------------------------------------------------------
Beneficially 8 Shared Voting Power
Owned By 4,166,688 shares 11.4%
Each ---------------------------------------------------------------
Reporting 9 Sole Dispositive Power
Person 0 shares 0%
With ---------------------------------------------------------------
10 Shared Dispositive Power
4,166,688 shares 11.4%
--------------------------------------------------------------------------------
11 Aggregate Amount Beneficially Owned By Each Reporting Person
4,166,688 shares
--------------------------------------------------------------------------------
12 Check Box if the Aggregate Amount in Row (11) excludes Certain Shares*
|_|
--------------------------------------------------------------------------------
13 Percent of Class Represented by Amount in Row (11)
11.4%
--------------------------------------------------------------------------------
14 Type of Reporting Person*
PN
================================================================================
*SEE INSTRUCTIONS BEFORE FILLING OUT!
- 4 of 28 -
<PAGE>
CUSIP
No. 912899101 13D
================================================================================
1 Names of Reporting Persons
I.R.S. Identification Nos. of Above Persons (Entities Only)
Sandler Capital Management
-------------------------------------------------------------------------------
2 Check the Appropriate Box if a Member of a Group*
(a) |_|
(b) |_|
--------------------------------------------------------------------------------
3 SEC Use Only
--------------------------------------------------------------------------------
4 Source of Funds* OO
--------------------------------------------------------------------------------
5 Check Box if Disclosure of Legal Proceedings is Required
Pursuant to Item 2(d) or 2(e) |_|
--------------------------------------------------------------------------------
6 Citizenship or Place of Organization New York
--------------------------------------------------------------------------------
7 Sole Voting Power
Number of 0 shares 0%
Shares ---------------------------------------------------------------
Beneficially 8 Shared Voting Power
Owned By 4,166,688 shares 11.4%
Each ---------------------------------------------------------------
Reporting 9 Sole Dispositive Power
Person 0 shares 0%
With ---------------------------------------------------------------
10 Shared Dispositive Power
4,166,688 shares 11.4%
--------------------------------------------------------------------------------
11 Aggregate Amount Beneficially Owned By Each Reporting Person
4,166,688 shares
--------------------------------------------------------------------------------
12 Check Box if the Aggregate Amount in Row (11) excludes Certain Shares*
|_|
--------------------------------------------------------------------------------
13 Percent of Class Represented by Amount in Row (11)
11.4%
--------------------------------------------------------------------------------
14 Type of Reporting Person*
PN
================================================================================
*SEE INSTRUCTIONS BEFORE FILLING OUT!
- 5 of 28 -
<PAGE>
CUSIP
No. 912899101 13D
================================================================================
1 Names of Reporting Persons
I.R.S. Identification Nos. of Above Persons (Entities Only)
ARH Corp.
-------------------------------------------------------------------------------
2 Check the Appropriate Box if a Member of a Group*
(a) |_|
(b) |_|
--------------------------------------------------------------------------------
3 SEC Use Only
--------------------------------------------------------------------------------
4 Source of Funds* OO
--------------------------------------------------------------------------------
5 Check Box if Disclosure of Legal Proceedings is Required
Pursuant to Item 2(d) or 2(e) |_|
--------------------------------------------------------------------------------
6 Citizenship or Place of Organization Delaware
--------------------------------------------------------------------------------
7 Sole Voting Power
Number of 0 shares 0%
Shares ---------------------------------------------------------------
Beneficially 8 Shared Voting Power
Owned By 4,166,688 shares 11.4%
Each ---------------------------------------------------------------
Reporting 9 Sole Dispositive Power
Person 0 shares 0%
With ---------------------------------------------------------------
10 Shared Dispositive Power
4,166,688 shares 11.4%
--------------------------------------------------------------------------------
11 Aggregate Amount Beneficially Owned By Each Reporting Person
4,166,688 shares
--------------------------------------------------------------------------------
12 Check Box if the Aggregate Amount in Row (11) excludes Certain Shares*
|_|
--------------------------------------------------------------------------------
13 Percent of Class Represented by Amount in Row (11)
11.4%
--------------------------------------------------------------------------------
14 Type of Reporting Person*
CO
================================================================================
*SEE INSTRUCTIONS BEFORE FILLING OUT!
- 6 of 28 -
<PAGE>
CUSIP
No. 912899101 13D
================================================================================
1 Names of Reporting Persons
I.R.S. Identification Nos. of Above Persons (Entities Only)
MJDM Corp.
-------------------------------------------------------------------------------
2 Check the Appropriate Box if a Member of a Group*
(a) |_|
(b) |_|
--------------------------------------------------------------------------------
3 SEC Use Only
--------------------------------------------------------------------------------
4 Source of Funds* OO
--------------------------------------------------------------------------------
5 Check Box if Disclosure of Legal Proceedings is Required
Pursuant to Item 2(d) or 2(e) |_|
--------------------------------------------------------------------------------
6 Citizenship or Place of Organization New York
--------------------------------------------------------------------------------
7 Sole Voting Power
Number of 0 shares 0%
Shares ---------------------------------------------------------------
Beneficially 8 Shared Voting Power
Owned By 4,166,688 shares 11.4%
Each ---------------------------------------------------------------
Reporting 9 Sole Dispositive Power
Person 0 shares 0%
With ---------------------------------------------------------------
10 Shared Dispositive Power
4,166,688 shares 11.4%
--------------------------------------------------------------------------------
11 Aggregate Amount Beneficially Owned By Each Reporting Person
4,166,688 shares
--------------------------------------------------------------------------------
12 Check Box if the Aggregate Amount in Row (11) excludes Certain Shares*
|_|
--------------------------------------------------------------------------------
13 Percent of Class Represented by Amount in Row (11)
11.4%
--------------------------------------------------------------------------------
14 Type of Reporting Person*
CO
================================================================================
*SEE INSTRUCTIONS BEFORE FILLING OUT!
- 7 of 28 -
<PAGE>
CUSIP
No. 912899101 13D
================================================================================
1 Names of Reporting Persons
I.R.S. Identification Nos. of Above Persons (Entities Only)
Four JK Corp.
-------------------------------------------------------------------------------
2 Check the Appropriate Box if a Member of a Group*
(a) |_|
(b) |_|
--------------------------------------------------------------------------------
3 SEC Use Only
--------------------------------------------------------------------------------
4 Source of Funds* OO
--------------------------------------------------------------------------------
5 Check Box if Disclosure of Legal Proceedings is Required
Pursuant to Item 2(d) or 2(e) |_|
--------------------------------------------------------------------------------
6 Citizenship or Place of Organization Delaware
--------------------------------------------------------------------------------
7 Sole Voting Power
Number of 0 shares 0%
Shares ---------------------------------------------------------------
Beneficially 8 Shared Voting Power
Owned By 4,166,688 shares 11.4%
Each ---------------------------------------------------------------
Reporting 9 Sole Dispositive Power
Person 0 shares 0%
With ---------------------------------------------------------------
10 Shared Dispositive Power
4,166,688 shares 11.4%
--------------------------------------------------------------------------------
11 Aggregate Amount Beneficially Owned By Each Reporting Person
4,166,688 shares
--------------------------------------------------------------------------------
12 Check Box if the Aggregate Amount in Row (11) excludes Certain Shares*
|_|
--------------------------------------------------------------------------------
13 Percent of Class Represented by Amount in Row (11)
11.4%
--------------------------------------------------------------------------------
14 Type of Reporting Person*
CO
================================================================================
*SEE INSTRUCTIONS BEFORE FILLING OUT!
- 8 of 28 -
<PAGE>
CUSIP
No. 912899101 13D
================================================================================
1 Names of Reporting Persons
I.R.S. Identification Nos. of Above Persons (Entities Only)
Harvey Sandler
-------------------------------------------------------------------------------
2 Check the Appropriate Box if a Member of a Group*
(a) |_|
(b) |_|
--------------------------------------------------------------------------------
3 SEC Use Only
--------------------------------------------------------------------------------
4 Source of Funds* PF, OO
--------------------------------------------------------------------------------
5 Check Box if Disclosure of Legal Proceedings is Required
Pursuant to Item 2(d) or 2(e) |_|
--------------------------------------------------------------------------------
6 Citizenship or Place of Organization United States
--------------------------------------------------------------------------------
7 Sole Voting Power
Number of 0 shares 0%
Shares ---------------------------------------------------------------
Beneficially 8 Shared Voting Power
Owned By 4,166,688 shares 11.4%
Each ---------------------------------------------------------------
Reporting 9 Sole Dispositive Power
Person 0 shares 0%
With ---------------------------------------------------------------
10 Shared Dispositive Power
4,166,688 shares 11.4%
--------------------------------------------------------------------------------
11 Aggregate Amount Beneficially Owned By Each Reporting Person
4,166,688 shares
--------------------------------------------------------------------------------
12 Check Box if the Aggregate Amount in Row (11) excludes Certain Shares*
|_|
--------------------------------------------------------------------------------
13 Percent of Class Represented by Amount in Row (11)
11.4%
--------------------------------------------------------------------------------
14 Type of Reporting Person*
IN
================================================================================
*SEE INSTRUCTIONS BEFORE FILLING OUT!
- 9 of 28 -
<PAGE>
CUSIP
No. 912899101 13D
================================================================================
1 Names of Reporting Persons
I.R.S. Identification Nos. of Above Persons (Entities Only)
Michael J. Marocco
-------------------------------------------------------------------------------
2 Check the Appropriate Box if a Member of a Group*
(a) |_|
(b) |_|
--------------------------------------------------------------------------------
3 SEC Use Only
--------------------------------------------------------------------------------
4 Source of Funds* PF, OO
--------------------------------------------------------------------------------
5 Check Box if Disclosure of Legal Proceedings is Required
Pursuant to Item 2(d) or 2(e) |_|
--------------------------------------------------------------------------------
6 Citizenship or Place of Organization United States
--------------------------------------------------------------------------------
7 Sole Voting Power
Number of 0 shares 0%
Shares ---------------------------------------------------------------
Beneficially 8 Shared Voting Power
Owned By 4,166,688 shares 11.4%
Each ---------------------------------------------------------------
Reporting 9 Sole Dispositive Power
Person 0 shares 0%
With ---------------------------------------------------------------
10 Shared Dispositive Power
4,166,688 shares 11.4%
--------------------------------------------------------------------------------
11 Aggregate Amount Beneficially Owned By Each Reporting Person
4,166,688 shares
--------------------------------------------------------------------------------
12 Check Box if the Aggregate Amount in Row (11) excludes Certain Shares*
|_|
--------------------------------------------------------------------------------
13 Percent of Class Represented by Amount in Row (11)
11.4%
--------------------------------------------------------------------------------
14 Type of Reporting Person*
IN
================================================================================
*SEE INSTRUCTIONS BEFORE FILLING OUT!
- 10 of 28 -
<PAGE>
CUSIP
No. 912899101 13D
================================================================================
1 Names of Reporting Persons
I.R.S. Identification Nos. of Above Persons (Entities Only)
John Kornreich
-------------------------------------------------------------------------------
2 Check the Appropriate Box if a Member of a Group*
(a) |_|
(b) |_|
--------------------------------------------------------------------------------
3 SEC Use Only
--------------------------------------------------------------------------------
4 Source of Funds* PF, OO
--------------------------------------------------------------------------------
5 Check Box if Disclosure of Legal Proceedings is Required
Pursuant to Item 2(d) or 2(e) |_|
--------------------------------------------------------------------------------
6 Citizenship or Place of Organization United States
--------------------------------------------------------------------------------
7 Sole Voting Power
Number of 0 shares 0%
Shares ---------------------------------------------------------------
Beneficially 8 Shared Voting Power
Owned By 4,166,688 shares 11.4%
Each ---------------------------------------------------------------
Reporting 9 Sole Dispositive Power
Person 0 shares 0%
With ---------------------------------------------------------------
10 Shared Dispositive Power
4,166,688 shares 11.4%
--------------------------------------------------------------------------------
11 Aggregate Amount Beneficially Owned By Each Reporting Person
4,166,688 shares
--------------------------------------------------------------------------------
12 Check Box if the Aggregate Amount in Row (11) excludes Certain Shares*
|_|
--------------------------------------------------------------------------------
13 Percent of Class Represented by Amount in Row (11)
11.4%
--------------------------------------------------------------------------------
14 Type of Reporting Person*
IN
================================================================================
*SEE INSTRUCTIONS BEFORE FILLING OUT!
- 11 of 28 -
<PAGE>
This statement, dated September 7, 2000, relates to the reporting persons'
ownership of the securities of U.S. Wireless Data, Inc. (the "Issuer" or
"Wireless").
- 12 of 28 -
<PAGE>
All references to shares of common stock do not reflect a 1-for-4 reverse
stock split which was effected on October 18, 2000.
ITEM 1. SECURITY AND ISSUER
(a) Common Stock, no par value per share ("Common Stock"), (CUSIP No.
912899101).
(b) Series C Convertible Preferred Stock (the "Series C Preferred
Stock"), each share of Series C Preferred Stock, is convertible
into a number of shares of Common Stock determined by dividing
the liquidation value, by the conversion price (initially $1.50
per share, subject to adjustment).
(c) Warrant (the "Warrant"), is exercisable for a period of seven
years for an aggregate number of shares of Common Stock equal to
25% of the number of shares into which the Series C Preferred
Stock is convertible, at an initial exercise price of $1.50 per
share, subject to adjustment.
(d) U.S. Wireless Data, Inc.
750 Lexington Avenue
New York, New York 10022
ITEM 2. IDENTITY AND BACKGROUND
1. (a) Sandler Capital Partners IV L.P., a limited partnership organized
under the laws of the State of Delaware ("Sandler IV").
(b) Address: 767 Fifth Avenue
New York, New York 10153
(c) Principal Business: Investments.
(d) No.
(e) No.
2. (a) Sandler Capital Partners IV FTE, L.P., a limited partnership
organized under the laws of the State of Delaware ("Sandler IV
FTE").
(b) Address: 767 Fifth Avenue
New York, New York 10153
(c) Principal Business: Investments.
(d) No.
(e) No.
3. (a) Sandler Investment Partners, L.P., a limited partnership
organized under the laws of the State of Delaware ("SIP").
(b) Address: 767 Fifth Avenue
New York, New York 10153
(c) Principal Business: Investments.
(d) No.
(e) No.
- 13 of 28 -
<PAGE>
4. (a) Sandler Capital Management, a registered investment advisor and a
general partnership organized under the laws of the State of New
York ("SCM").
(b) Address: 767 Fifth Avenue
New York, New York 10153
(c) Principal Business: Investments.
(d) No.
(e) No.
SCM is managed by a committee consisting of the principal stockholders of
ARH Corp., MJDM Corp. and Four JK Corp. (Harvey Sandler, Michael Marocco and
John Kornreich). All decisions regarding Sandler IV and Sandler IV FTE's
investment in the securities of Wireless require the consent of the committee.
SCM currently has 5 other general partners.
The attached Schedule I sets forth a list of each of the other general
partners of SCM (other than ARH Corp., MJDM Corp. and Four JK Corp.), the
executive officers and directors of each of the general partners of SCM, and the
controlling persons of the other general partners of SCM, and contains the
following information with respect to each such person: (i) name, (ii) business
address, (iii) present principal occupation or employment and the name,
principal business and address of any corporation or other organization in which
such employment is conducted, and (iv) citizenship or state or other place of
organization.
5. (a) ARH Corp., a Delaware corporation.
(b) Address: 767 Fifth Avenue
New York, New York 10153
(c) Principal Business: Investments.
(d) No.
(e) No.
6. (a) MJDM Corp., a New York corporation.
(b) Address: 767 Fifth Avenue
New York, New York 10153
(c) Principal Business: Investments.
(d) No.
(e) No.
7. (a) Four JK Corp., a Delaware corporation.
(b) Address: 767 Fifth Avenue
New York, New York 10153
(c) Principal Business: Investments.
(d) No.
(e) No.
- 14 of 28 -
<PAGE>
8. (a) Harvey Sandler, is the sole stockholder of ARH Corp., President
of Sandler Enterprises and a Managing Director of SCM.
(b) Address: Sandler Enterprises
1555 North Park Drive
Suite 101
Weston, FL 33326
(c) Principal Occupation: Investor.
(d) No.
(e) No.
(f) Citizenship: United States
ARH Corp. is a general partner of SCM, which is the general partner of SIP,
the general partner of Sandler IV and Sandler IV FTE. Harvey Sandler is the
father of Andrew Sandler, the sole shareholder of ALCR Corp., a general partner
of SCM.
9. (a) Michael J. Marocco, is the sole shareholder of MJDM Corp. and a
Managing Director of SCM.
(b) Address: Sandler Capital Management
767 Fifth Avenue
New York, New York 10153
(c) Principal Occupation: Investments.
(d) No.
(e) No.
(f) Citizenship: United States.
MJDM Corp. is a general partner of SCM, which is the general partner of
SIP, the general partner of Sandler IV and Sandler IV FTE.
10. (a) John Kornreich, is the majority stockholder of Four JK Corp. and
a Managing Director of SCM.
(b) Address: Sandler Capital Management
767 Fifth Avenue
New York, New York 10153
(c) Principal Occupation: Investments.
(d) No.
(e) No.
(f) Citizenship: United States.
Four JK Corp. is a general partner of SCM, which is the general partner of
SIP, the general partner of Sandler IV and Sandler IV FTE.
None of the reporting persons and to the best of each of the reporting
person's knowledge, none of the persons named in Schedule I hereto, has during
the last five years, been convicted in a criminal proceeding (excluding traffic
violations or similar misdemeanors) or been a party to a civil proceeding of a
judicial or administrative body of competent jurisdiction resulting in a
judgment, decree or final order enjoining future violations of, or prohibiting
or mandating activities subject to, federal or state securities laws or finding
any violation with respect to such laws.
ITEM 3. Source and Amount of Funds or Other Consideration.
The source of funds for the acquisition of the units was the general
working capital and other funds of Sandler IV and Sandler IV FTE.
- 15 of 28 -
<PAGE>
In a private placement that closed on May 31, 2000, the reporting persons
purchased a total of 50 units at a price of $100,000 per unit. Each unit
consisted of 10,000 shares of Series C Preferred Stock and Warrants to purchase
a number of shares of Common Stock equal to 25% of the number of shares of
Common Stock into which the Series C Preferred Stock is convertible, at an
initial exercise price of $1.50 per share. Each share of Series C Preferred
Stock is convertible at any time into a number of shares of Common Stock
determined by dividing the liquidation value, by the conversion price, initially
$1.50 per share, which is subject to adjustment for stock splits,
recapitalizations, and other similar events.
As a result of the approval on September 7, 2000 by the Issuer's
shareholders of an amendment to the Issuer's Articles of Incorporation
increasing its authorized Common Stock, the Series C Preferred Stock and the
Warrants became convertible and exercisable, respectively.
Purchase
Number of Units Price
--------------- -----
Sandler Capital Partners IV, L.P. 35.47 $3,547,000
Sandler Capital Partners IV FTE, L.P. 14.53 $1,453,000
--------------------------------------------------------------------------------
ITEM 4. Purpose of Transaction.
Other than the reporting persons' purchase or sale of additional securities
of the Issuer, no reporting person has any present plan or proposal which would
relate to or result in any of the matters set forth in subparagraphs (a) - (j)
of Item 4 of Schedule 13D except as set forth herein.
ITEM 5. Interests in Securities of the Issuer.
(a) The following list sets forth the aggregate number and percentage
(based on 32,396,748 shares of Common Stock outstanding as reported by the
Issuer in its definitive proxy statement on Schedule 14A filed on August 8,
2000), of outstanding shares of Common Stock owned beneficially by each
reporting person named in Item 2, as of September 7, 2000:
<TABLE>
<CAPTION>
Shares of Common Percentage of Shares
Stock Beneficially of Common Stock
Name Owned Beneficially Owned
---- ------------------ ------------------
<S> <C> <C>
Sandler Capital Partners IV, L.P. 4,166,688(2,3,4) 11.4%
Sandler Capital Partners IV FTE, L.P. 4,166,688(2,3,4) 11.4%
Sandler Investment Partners, L.P. 4,166,688(2,3,4) 11.4%
</TABLE>
--------
(2) Includes 2,955,848 shares of Common Stock issuable upon the conversion
of the 354,700 shares of Series C Preferred Stock owned by Sandler IV
and 591,170 shares of Common Stock issuable upon the exercise of the
Warrants owned by Sandler IV.
(3) Includes 1,210,840 shares of Common Stock issuable upon the conversion
of the 145,300 shares of Series C Preferred Stock owned by Sandler IV
FTE and 242,168 shares of Common Stock issuable upon the exercise of
the Warrants owned by Sandler IV FTE.
(4) The reporting person disclaims beneficial ownership of these
securities except to the extent of his/its equity interest therein.
- 16 of 28 -
<PAGE>
<TABLE>
<CAPTION>
Shares of Common Percentage of Shares
Stock Beneficially of Common Stock
Name Owned Beneficially Owned
---- ------------------ ------------------
<S> <C> <C>
Sandler Capital Management 4,166,688(2,3,4) 11.4%
ARH Corp. 4,166,688(2,3,4) 11.4%
MJDM Corp. 4,166,688(2,3,4) 11.4%
Four JK Corp. 4,166,688(2,3,4) 11.4%
Harvey Sandler 4,166,688(2,3,4) 11.4%
Michael J. Marocco 4,166,688(2,3,4) 11.4%
John Kornreich 4,166,688(2,3,4) 11.4%
</TABLE>
(b) SCM is managed by a committee consisting of the principal stockholders
of ARH Corp., MJDM Corp. and Four JK Corp. (Harvey Sandler, Michael Marocco and
John Kornreich). All decisions regarding Sandler IV and Sandler IV FTE's
investment in the securities of the Issuer require the consent of the committee.
SCM currently has 5 other general partners.
Sandler IV has sole power to vote and to dispose of 2,955,848 shares of
Common Stock (including 2,364,678 shares of Common Stock issuable upon the
conversion of the Series C Preferred Stock and 591,170 shares of Common Stock
issuable upon the exercise of the Warrants), representing approximately 8.4% of
the outstanding shares of Common Stock. Sandler IV may be deemed to have shared
power to vote and to dispose of 1,210,840 shares of Common Stock (including
968,672 shares of Common Stock issuable upon the conversion of the Series C
Preferred Stock and 242,168 shares of Common Stock issuable upon the exercise of
the Warrants), representing approximately 3.6% of the outstanding shares of
Common Stock.
Sandler IV FTE has sole power to vote and to dispose of 1,210,840 shares of
Common Stock (including 968,672 shares of Common Stock issuable upon the
conversion of the Series C Preferred Stock and 242,168 shares of Common Stock
issuable upon the exercise of the Warrants), representing approximately 3.6% of
the outstanding shares of Common Stock. Sandler IV FTE may be deemed to have
shared power to vote and to dispose of 2,955,848 shares of Common Stock
(including 2,364,678 shares of Common Stock issuable upon the conversion of the
Series C Preferred Stock and 591,170 shares of Common Stock issuable upon the
exercise of the Warrants), representing approximately 8.4% of the outstanding
shares of Common Stock.
By virtue of being the general partner of Sandler IV and Sandler IV FTE,
SIP may be deemed to have shared power to vote and to dispose of 4,166,688
shares of Common Stock (including 3,333,350 shares of Common Stock issuable upon
the conversion of the Series C Preferred Stock and 833,338 shares of Common
Stock issuable upon the exercise of the Warrants), representing approximately
11.4% of the outstanding shares of Common Stock.
By virtue of being the general partner of Sandler Investment Partners,
Sandler Capital Management may be deemed to have shared power to vote and to
dispose of 4,166,688 shares of Common Stock (including 3,333,350 shares of
Common Stock issuable upon the conversion of the Series C Preferred Stock and
833,338 shares of Common Stock issuable upon the exercise of the Warrants),
representing approximately 11.4% of the outstanding shares of Common Stock.
By virtue of being a general partner of SCM, each of ARH Corp., MJDM Corp.
and Four JK Corp., may be deemed to have shared power to vote and to dispose of
4,166,688 shares of
- 17 of 28 -
<PAGE>
Common Stock (including 3,333,350 shares of Common Stock issuable upon the
conversion of the Series C Preferred Stock and 833,338 shares of Common Stock
issuable upon the exercise of the Warrants), representing approximately 11.4% of
the outstanding shares of Common Stock.
By virtue of being the sole stockholder of ARH Corp., Harvey Sandler may be
deemed to have shared power to vote and to dispose of 4,166,688 shares of Common
Stock (including 3,333,350 shares of Common Stock issuable upon the conversion
of the Series C Preferred Stock and 833,338 shares of Common Stock issuable upon
the exercise of the Warrants), representing approximately 11.4% of the
outstanding shares of Common Stock.
By virtue of being the sole shareholder of MJDM Corp., Michael Marocco may
be deemed to have shared power to vote and to dispose of 4,166,688 shares of
Common Stock (including 3,333,350 shares of Common Stock issuable upon the
conversion of the Series C Preferred Stock and 833,338 shares of Common Stock
issuable upon the exercise of the Warrants), representing approximately 11.4% of
the outstanding shares of Common Stock.
By virtue of being the majority stockholder of Four JK Corp., John
Kornreich may be deemed to have shared power to vote and to dispose of 4,166,688
shares of Common Stock (including 3,333,350 shares of Common Stock issuable upon
the conversion of the Series C Preferred Stock and 833,338 shares of Common
Stock issuable upon the exercise of the Warrants), representing approximately
11.4% of the outstanding shares of Common Stock.
(c) During the past sixty days, the reporting persons have not effected any
transactions in shares of Common Stock.
(d) No other person has the right to receive or the power to direct the
receipt of dividends from, or the proceeds from the sale of such securities.
(e) Not applicable.
ITEM 6. Contracts Arrangements Understanding or Relationships with Respect to
Securities of the Issuer
The reporting persons agreed that they will not sell, transfer or otherwise
dispose of the securities or the Common Stock issuable upon the conversion or
exercise of such securities purchased in the private placement for a period of
one year following the closing and thereafter, each investor may not sell,
transfer or dispose of more than 25% on a cumulative basis of such securities
during each of the following four 90-day periods. The lock-up period may be
extended by Commonwealth Associates (the placement agent) for up to an
additional six months from the closing of any public offering that is
consummated prior to the end of the initial lock-up period, in which case there
will be no further lock-up at the end of such period.
The Series C Preferred Stock is automatically convertible into Common Stock
(a) if at any time commencing three months after June 17, 2000, the average
closing bid price of the Issuer's Common Stock exceeds 300% of the conversion
price for 20 consecutive trading days, or (b) upon a public offering of the
Issuer's securities that raises gross proceeds in excess of $30,000,000.
- 18 of 28 -
<PAGE>
The Series C Preferred Stock has a liquidation preference of $10.00 per
share, plus accrued and unpaid dividends. The holders of the Series C Preferred
Stock are entitled to vote their shares on all matters submitted to a vote of
the shareholders, on an as-converted basis with the holders of the Common Stock
as a single class, except as required by applicable law, and except the holders
of the Series C Preferred Stock have the right to vote separately as a class to
elect two directors to the Issuer's Board of Directors.
The Warrants are callable for a nominal price at the Issuer's option on 30
days' notice to the holders if (a) the average closing bid price of the Issuer's
Common Stock for 20 consecutive trading days exceeds 300% of the exercise price,
as adjusted, (b) the Common Stock is trading on a national securities exchange
or Nasdaq SmallCap or National Market Systems or (c) a registration statement
covering the shares issuable upon the exercise of the Warrants has been declared
effective and such shares are not otherwise subject to any lock-up restrictions.
The Issuer also agreed to file a registration statement with respect to the
shares of Common Stock issuable upon the conversion of the Series C Preferred
Stock and exercise of the Warrants within nine months of the closing of the
private placement and provided certain "piggyback" registration rights.
ITEM 7. Materials to be Filed as Exhibits
Exhibit 1. Agreement among the reporting persons, effective as of September
7, 2000, by which they have agreed to file this Schedule 13D and all necessary
amendments, as required by Rule 13d-1(f).
Exhibit 2. Form of Unit Warrant (incorporated by reference to the Issuer's
Report on Form 8-K/A filed on April 24, 2000).
Exhibit 3. Certificate of Amendment to Articles of Incorporation filed on
March 10, 2000 (including Certificate of Correction filed March 16, 2000)
(incorporated by reference from the Issuer's Report on Form 8-K/A filed on April
24, 2000).
Exhibit 4. Form of Subscription Agreement (incorporated by reference to the
Issuer's Report on Form 8-K/A filed on April 24, 2000).
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<PAGE>
SIGNATURE
After reasonable inquiry and to the best of his/her/its knowledge and
belief, each of the undersigned hereby certifies that the information set forth
in this Schedule is true, complete and correct.
Dated: December 20, 2000
SANDLER CAPITAL PARTNERS IV, L.P.
By: Sandler Investment Partners, L.P.,
General Partner
By: Sandler Capital Management,
General Partner
By: MJDM Corp., a
General Partner
By: /s/ Moira Mitchell
---------------------------
Name: Moira Mitchell
Title: President
SANDLER CAPITAL PARTNERS IV FTE, L.P.
By: Sandler Investment Partners, L.P.,
General Partner
By: Sandler Capital Management,
General Partner
By: MJDM Corp., a
General Partner
By: /s/ Moira Mitchell
---------------------------
Name: Moira Mitchell
Title: President
SANDLER INVESTMENT PARTNERS, L.P.
By: Sandler Capital Management,
General Partner
By: MJDM Corp., a General Partner
By: /s/ Moira Mitchell
-------------------------------
Name: Moira Mitchell
Title: President
- 20 of 28 -
<PAGE>
SANDLER CAPITAL MANAGEMENT
By: MJDM Corp., a General Partner
By: /s/ Moira Mitchell
-----------------------------------
Name: Moira Mitchell
Title: President
ARH CORP.
By: /s/ Moira Mitchell
---------------------------------------
Name: Moira Mitchell
Title: Secretary and Treasurer
MJDM CORP.
By: /s/ Moira Mitchell
---------------------------------------
Name: Moira Mitchell
Title: President
FOUR JK CORP.
By: /s/ Moira Mitchell
---------------------------------------
Name: Moira Mitchell
Title: President
/s/ Harvey Sandler
--------------------------------------
Harvey Sandler
/s/ Michael J. Marocco
--------------------------------------
Michael J. Marocco
/s/ John Kornreich
--------------------------------------
John Kornreich
ATTENTION: INTENTIONAL MISSTATEMENTS OR OMISSIONS OF FACT CONSTITUTE FEDERAL
CRIMINAL VIOLATIONS (SEE 18 U.S.C. 1001).
- 21 of 28 -
<PAGE>
EXHIBIT 1
JOINT FILING AGREEMENT
In accordance with Rule 13d-1(f) under the Securities Exchange Act of 1934,
as amended, the undersigned hereby agree to the joint filing on behalf of each
of them of a statement on Schedule 13D (including amendments thereto) with
respect to the securities of U.S. Wireless Data, Inc. and that this Agreement be
filed as an Exhibit to such statement on Schedule 13D.
IN WITNESS WHEREOF, the undersigned hereby execute this Agreement effective
as of the 7th day of September, 2000.
SANDLER CAPITAL PARTNERS IV, L.P.
By: Sandler Investment Partners, L.P.,
General Partner
By: Sandler Capital Management,
General Partner
By: MJDM Corp., a
General Partner
By: /s/ Moira Mitchell
---------------------------
Name: Moira Mitchell
Title: President
SANDLER CAPITAL PARTNERS IV FTE, L.P.
By: Sandler Investment Partners, L.P.,
General Partner
By: Sandler Capital Management,
General Partner
By: MJDM Corp., a
General Partner
By: /s/ Moira Mitchell
---------------------------
Name: Moira Mitchell
Title: President
SANDLER INVESTMENT PARTNERS, L.P.
By: Sandler Capital Management,
General Partner
By: MJDM Corp., a General Partner
By: /s/ Moira Mitchell
-------------------------------
Name: Moira Mitchell
Title: President
- 22 of 28 -
<PAGE>
SANDLER CAPITAL MANAGEMENT
By: MJDM Corp., a General Partner
By: /s/ Moira Mitchell
-----------------------------------
Name: Moira Mitchell
Title: President
ARH CORP.
By: /s/ Moira Mitchell
---------------------------------------
Name: Moira Mitchell
Title: Secretary and Treasurer
MJDM CORP.
By: /s/ Moira Mitchell
---------------------------------------
Name: Moira Mitchell
Title: President
FOUR JK CORP.
By: /s/ Moira Mitchell
---------------------------------------
Name: Moira Mitchell
Title: President
/s/ Harvey Sandler
---------------------------------------
Harvey Sandler
/s/ Michael J. Marocco
---------------------------------------
Michael J. Marocco
/s/ John Kornreich
---------------------------------------
John Kornreich
- 23 of 28 -
<PAGE>
The following Schedule sets forth a list of each of the other general
partners of Sandler Capital Management (other than ARH Corp., MJDM Corp. and
Four JK Corp.) the executive officers and directors of each of the general
partners of Sandler Capital Management, and the controlling persons of the other
general partners of Sandler Capital Management, and contains the following
information with respect to each such person: (i) name, (ii) business address,
(iii) present principal occupation or employment and the name, principal
business and address of any corporation or other organization in which such
employment is conducted, and (iv) citizenship or state or other place of
organization.
SCHEDULE 1
OTHER GENERAL PARTNERS OF SANDLER CAPITAL MANAGEMENT
<TABLE>
<CAPTION>
Citizenship or State or Other Present principal business and
Name/Position Place of Organization address of its principal office
------------- --------------------- -------------------------------
<S> <C> <C>
ALCR Corp., General Partner New York Investments
767 Fifth Avenue
New York, New York 10153
Terpsi Corp., General Partner New York Investments
767 Fifth Avenue
New York, New York 10153
Serf Corp., General Partner New York Investments
767 Fifth Avenue
New York, New York 10153
Jirakal Corp., General Partner New York Investments
767 Fifth Avenue
New York, New York 10153
Medg Corp., General Partner New York Investments
767 Fifth Avenue
New York, New York 10153
<CAPTION>
EXECUTIVE OFFICERS AND DIRECTORS OF ARH CORP.
Present principal occupation or
employment and name,
Citizenship or State or Other principal business and
Name/Position Place of Organization address of employer
------------- --------------------- -------------------
<S> <C> <C>
Jeffrey M. Levine, President United States Chief Financial Officer
Sandler Enterprises
1555 North Park Drive
Suite 101
Weston, Florida 33329
Moira Mitchell, Secretary United States Administrative
and Treasurer Sandler Capital Management
767 Fifth Avenue
New York, New York 10153
Ricky Sandler, Director United States Investments
Eminence Partners LLC
20 Park Avenue
Suite 3300
New York, New York 10166
</TABLE>
- 24 of 28 -
<PAGE>
EXECUTIVE OFFICERS AND DIRECTORS OF MJDM CORP.
<TABLE>
<CAPTION>
Present principal occupation or
employment and name,
Citizenship or State or Other principal business and
Name/Position Place of Organization address of employer
------------- --------------------- -------------------
<S> <C> <C>
Moira Mitchell, President United States Administrative
Sandler Capital Management
767 Fifth Avenue
New York, New York 10153
Kathy Rose, Vice President, United States Administrative
Treasurer and Secretary Sandler Capital Management
767 Fifth Avenue
New York, New York 10153
Michael Todress, Director United States Accountant
Todress and Rubin LLP
400 Post Avenue
Suite 205
Westbury, New York 11590
<CAPTION>
EXECUTIVE OFFICERS AND DIRECTORS OF FOUR JK CORP.
Present principal occupation or
employment and name,
Citizenship or State or Other principal business and
Name/Position Place of Organization address of employer
------------- --------------------- -------------------
<S> <C> <C>
Moira Mitchell, Director and United States Administrative
President Sandler Capital Management
767 Fifth Avenue
New York, New York 10153
Kathy Rose, Vice President United States Administrative
and Secretary Sandler Capital Management
767 Fifth Avenue
New York, New York 10153
</TABLE>
- 25 of 28 -
<PAGE>
EXECUTIVE OFFICERS, DIRECTORS AND SHAREHOLDERS OF ALCR CORP.
<TABLE>
<CAPTION>
Present principal occupation or
employment and name,
Citizenship or State or Other principal business and
Name/Position Place of Organization address of employer
------------- --------------------- -------------------
<S> <C> <C>
Jeffrey M. Levine, President United States Chief Financial Officer
Sandler Enterprises
1555 North Park Drive
Suite 101
Weston, Florida 33329
Moira Mitchell, Vice United States Administrative
President and Secretary Sandler Capital Management
767 Fifth Avenue
New York, New York 10153
Ricky Sandler, Director United States Investments
Eminence Partners LLC
20 Park Avenue
Suite 3300
New York, New York 10166
Andrew Sandler, Sole United States Managing Director
Shareholder Sandler Capital Management
767 Fifth Avenue
New York, New York 10153
<CAPTION>
EXECUTIVE OFFICERS, DIRECTORS AND SHAREHOLDERS OF TERPSI CORP.
Present principal occupation or
employment and name,
Citizenship or State or Other principal business and
Name/Position Place of Organization address of employer
------------- --------------------- -------------------
<S> <C> <C>
Moira Mitchell, President United States Administrative
Sandler Capital Management
767 Fifth Avenue
New York, New York 10153
Kathy Rose, Vice President United States Administrative
and Secretary Sandler Capital Management
767 Fifth Avenue
New York, New York 10153
Michael Todress, Director United States Accountant
Todress and Rubin LLP
400 Post Avenue
Suite 205
Westbury, New York 11590
Hannah Stone, Sole United States Managing Director
Shareholder Sandler Capital Management
767 Fifth Avenue
New York, New York 10153
</TABLE>
- 26 of 28 -
<PAGE>
EXECUTIVE OFFICERS, DIRECTORS AND SHAREHOLDERS OF JIRAKAL CORP.
<TABLE>
<CAPTION>
Present principal occupation or
employment and name,
Citizenship or State or Other principal business and
Name/Position Place of Organization address of employer
------------- --------------------- -------------------
<S> <C> <C>
Moira Mitchell, President United States Administrative
Sandler Capital Management
767 Fifth Avenue
New York, New York 10153
Kathy Rose, Vice President United States Administrative
and Secretary Sandler Capital Management
767 Fifth Avenue
New York, New York 10153
Michael Todress, Director United States Accountant
Todress and Rubin LLP
400 Post Avenue
Suite 205
Westbury, New York 11590
David Lee, Sole Shareholder United States Managing Director
Sandler Capital Management
767 Fifth Avenue
New York, New York 10153
<CAPTION>
EXECUTIVE OFFICERS, DIRECTORS AND SHAREHOLDERS OF SERF CORP.
Present principal occupation or
employment and name,
Citizenship or State or Other principal business and
Name/Position Place of Organization address of employer
------------- --------------------- -------------------
<S> <C> <C>
Moira Mitchell, President United States Administrative
Sandler Capital Management
767 Fifth Avenue
New York, New York 10153
Kathy Rose, Vice President United States Administrative
and Secretary Sandler Capital Management
767 Fifth Avenue
New York, New York 10153
Michael Todress, Director United States Accountant
Todress and Rubin LLP
400 Post Avenue
Suite 205
Westbury, New York 11590
Douglas Schimmel, Sole United States Managing Director
Shareholder Sandler Capital Management
767 Fifth Avenue
New York, New York 10153
</TABLE>
- 27 of 28 -
<PAGE>
EXECUTIVE OFFICERS, DIRECTORS AND SHAREHOLDERS OF MEDG CORP.
<TABLE>
<CAPTION>
Present principal occupation or
employment and name,
Citizenship or State or Other principal business and
Name/Position Place of Organization address of employer
------------- --------------------- -------------------
<S> <C> <C>
Moira Mitchell, Director and United States Administrative
President Sandler Capital Management
767 Fifth Avenue
New York, New York 10153
Anthony Cimini, Director, United States Controller
Vice President and Secretary Sandler Capital Management
767 Fifth Avenue
New York, New York 10153
Edward Grinacoff, Sole United States Managing Director
Shareholder Sandler Capital Management
767 Fifth Avenue
New York, New York 10153
- 28 of 28 -
</TABLE>
