Stock Offerings

1
AES Corp.
Arlington
Capital Raised: $801 million

AES Corp., the largest U.S. power plant developer, has repeatedly made Virginia Business’ list of top stock deals. The company tops this year’s list with more than $800 million raised in an October secondary offering. This offering overshadowed an offering in April 1999 that raised about $502 million. Both far surpassed the $189.7 million AES raised in 1998, an amount that was still significant enough to put the company on last year’s list of top 10 stock deals.

"AES has free cash flow to grow the company, about $4 billion," says Ken Woodcock, senior vice president at AES. But AES needed to tap the capital markets to enable it to make investments such as Drax, a $4 billion power plant in England that the company bought last year; six coal-fired power plants in New York that cost more than $900 million; and an integrated utility in Peoria, Ill.

Analysts often frown on companies that repeatedly dip into capital markets, but AES is an exception.

"AES is a perpetual user of capital equity markets," says Kyle Rudden, vice president and global power analyst at J.P. Morgan Securities in New York, which underwrote both 1999 offerings. "They have always made sound and financially [successful] transactions. The market has been very accepting."

With assets in excess of $10 billion, AES has numerous projects in construction or late stages of development and has placed more than $8 billion of financing with commercial banks, export credit agencies, multilateral financial institutions and public markets. Founded in 1981 and based in Arlington, AES employs roughly 40,000 people worldwide. AES generates, distributes and markets electricity. The company owns or has an interest in 119 plants in 16 countries and distributes electricity in six countries through 14 distribution businesses.

AES sold 14 million shares in a secondary offering Oct. 7 at $57.19 per share. It sold 10 million shares at $50.25 per share in a secondary offering April 27. As of mid-January, the stock was $76, up 33 percent from its October offering. J.P. Morgan Securities, Goldman Sachs & Co., and Salomon Smith Barney Inc. were the underwriters. Davis Polk and Wardwell was the lead law firm and the auditor was Deloitte & Touche. The stock symbol is AES on the New York Stock Exchange.

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2
Network Solutions Inc.
Herndon
Capital Raised: $779 million

Industry: Internet products and infrastructure

Price Performance: Sold 4.6 million shares in a secondary public offering at $170 per share on Feb. 8, 1999. The stock trades as NSOL on Nasdaq. The stock is way up, valued in late January at $243 per share, a jump of 43 percent.

Players: Lead underwriters include J.P. Morgan Securities and Chase H&Q; Pillsbury Madison & Sutro was the law firm and the auditor was Pricewater-houseCoopers LLP.

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3
AES Corp.
Arlington
Capital Raised: $503 million

Industry: Utilities

Price Performance: Sold 10 million shares at $50.25 per share in a secondary offering on April 27. The stock trades as AES. Its value was up 51 percent since the April offering and was trading at $76 in mid-January.

Players: J.P. Morgan Securities was the lead underwriter; Davis Polk & Wardwell provided legal advice and Deloitte & Touche was the auditor.

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4
AES Trust II
Arlington
Capital Raised: $450 million

Industry: Trust

Price Performance: Sold 9 million shares at the offering price of $50 per share in a secondary offering Oct. 7. The value was up about 52 percent in mid-January, at a quote of $76. The stock ticker symbol is AES.P.

Players: Underwriters include J.P. Morgan Securities and Goldman Sachs & Co. The attorney was Davis Polk & Wardwell and the auditor was Deloitte & Touche.

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5
PSINet Inc.
Herndon
Capital Raised: $404 million

Industry: Global e-commerce infrastructure

Price Performance: Sold 8 million shares at $50.50 in a secondary offering April 28. The stock is traded as PSIX on Nasdaq. In mid-January the stock was valued at $93, up 84 percent.

Players: Lead underwriter was Donaldson, Lufkin & Jenrette; Nixon, Hargrave, Devans & Doyle was the law firm and the auditor was Pricewater-houseCoopers LLP.

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6
TeleBanc Financial Corp.
Arlington
Capital Raised: $399 million

Industry: Banking

Price Performance: Sold 3.8 million shares at $105 per share in an April 12 secondary offering. The stock traded as TBFC on Nasdaq until it was acquired by E-Trade Group in mid-January and is now listed as EGRP/TBFC. It was down 50 percent in value in the last quarter.

Players: Goldman Sachs & Co. was the underwriter; Hogan and Harston was the law firm and Arthur Andersen was the auditor.

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7
Global Telesystems Group
McLean
Capital Raised: $311 million

Industry: Telecommunications

Price Performance: Sold 5.4 million shares at $57.50 in a secondary offering April 19. The stock trades as GTS on the New York Stock Exchange. In mid-January the stock was trading at $28, down 51 percent since the offering.

Players: Lead underwriter was Merrill Lynch & Co. The attorney was Shearman & Sterling and Pricewater-houseCoopers LLP was the auditor.

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8
Proxicom Inc.
Reston
Capital Raised: $189 million

Industry: E-commerce services

Price Performance: Sold 3.6 million shares at $52.38 per share in a secondary offering Oct. 7. The stock trades as PXCM on Nasdaq. In mid-January the stock was trading at $110, up 110 percent.

Players: Thomas Welsel Partners LLC was the lead underwriter, Hogan & Harston was the lead attorney and PricewaterhouseCoopers LLP was the auditor.

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9
Primus Telecommunications Group Inc.
McLean
Capital Raised: $180 million

Industry: Long-distance telecommunications

Price Performance: Sold 8 million shares at $22.50 in a secondary offering Oct. 11. The stock trades as PRTL on Nasdaq. In mid-January the stock was valued at $37, up 64 percent.

Players: The lead underwriter was Lehman Brothers Morgan Stanley Dean Witter. Deloitte & Touche was the auditor.

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10
Telecorp PCS Inc.
Arlington
Capital Raised: $156 million

Industry: Provides wireless personal communications services as an AT&T affiliate

Price Performance: Sold 7.8 million shares in a Nov. 23 initial public offering with an offering price of $20. That day, the stock opened at $35 and closed at $33. The stock in January was up 55 percent from the offering price and was selling for $31. It is listed as TLCP on Nasdaq NM.

Players: Salomon Smith Barney, Lehman Brothers, Deutsche Banc Alex Brown and Merrill Lynch were the underwriters. McDermott, Will & Emery handled legal counsel and PricewaterhouseCoopers LLP was the auditor.

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This report was compiled by Denyse Tannenbaum using information provided by IPOmonitor.com and Scott & Stringfellow.