Covad Communications Prices Follow-On Equity Offering; Covad Raises Gross Proceeds of $503 Million.SANTA CLARA Santa Clara, city, Cuba Santa Clara (sän`tä klä`rä), city (1994 est. pop. 217,000), capital of Villa Clara prov., central Cuba. , Calif.--(BUSINESS WIRE)--Nov. 4, 1999-- Covad Communications Group, Inc. (Nasdaq:COVD COVD College of Optometrists in Vision Development COVD Covad Communications Group (stock symbol) ) today announced the pricing of a follow-on equity offering consisting of 13 million shares of Common Stock at a price of $43.00 per share. Approximately 11.7 million primary shares are being sold by the Company, with the remaining 1.3 million shares being sold by Company management. The offering will raise gross proceeds of approximately $503 million before deducting underwriting discounts and expenses. The Company may sell an additional 1.95 million shares in the offering, pursuant to an over-allotment option granted to the underwriters of the offering. The proceeds from this offering will be used to fund expansion of the Company's network, sales and marketing activities, strategic transactions, working capital and for general corporate purposes. Bear, Stearns & Co. Inc. is the book-running lead manager, Morgan Stanley  To comply with Wikipedia's , the introduction of this article needs a complete rewrite. Dean Witter is the joint lead manager, and Credit Suisse First Boston Credit Suisse First Boston was originally the trading name of the Financière Crédit Suisse-First Boston, a London-based 50-50 investment banking joint venture formed in 1978 between the First Boston Corporation and Credit Suisse. Corporation, Deutsche Banc Alex. Brown Incorporated, Donaldson, Lufkin & Jenrette Securities Corporation, Goldman Sachs & Co. and Utendahl Capital Partners L.P. are the co-managing underwriters of this offering. About Covad Covad Communications is the leading national broadband services provider of high-speed Internet and network access utilizing DSL DSL in full Digital Subscriber Line Broadband digital communications connection that operates over standard copper telephone wires. It requires a DSL modem, which splits transmissions into two frequency bands: the lower frequencies for voice (ordinary . It offers services through Internet Service Providers Internet service provider (ISP) Company that provides Internet connections and services to individuals and organizations. For a monthly fee, ISPs provide computer users with a connection to their site (see data transmission), as well as a log-in name and password. to small and medium-sized businesses and home users. Covad services are currently available across the United States in 51 of the top Metropolitan Statistical Areas (MSAs) and in 100 by the end of 2000. At that time, Covad's network will reach more than 40 percent of all US homes and 45 percent of all US businesses. Covad Communications and its affiliates, doing business as Covad Communications Company, are wholly owned subsidiaries Wholly Owned Subsidiary A subsidiary whose parent company owns 100% of its common stock. Notes: In other words, the parent company owns the company outright and there are no minority owners. of Covad Communications Group, Inc. (Nasdaq:COVD). Corporate headquarters is located at 2330 Central Expressway, Santa Clara, CA, 95050. Telephone: 1-888-GO-COVAD. Web Site: www.covad.com. Safe Harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. Statement under the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995: The statements contained in this release which are not historical facts may be deemed to contain forward-looking statements, including but not limited to statements regarding overall demand for and acceptance of the Company's services, the ability to continue to build out central offices with deployment of the Company's network in new and existing regions and the timing and breadth of coverage in each region. Actual results may differ materially from those anticipated in any forward-looking statements as a result of certain risks and uncertainties, including, without limitation, the Company's dependence on third parties to market and resell our services, intense competition for the Company's service offerings, dependence on growth in demand for DSL-based services, dependence on incumbent local exchange carriers for collocation, unbundled network elements, transport and other facilities, ability to manage growth of our operations and other risks and uncertainties detailed in the Company's Securities and Exchange Commission filings. |
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