Filed pursuant to
Rule 424(b)(3)
Reg. Stmt. No. 333-63243
Supplement Dated February 16, 2000 to AVISTA
Prospectus Dated September 11, 1998 Corp.
On November 12, 1999, the Board of Directors of Avista Corporation adopted a new
Shareholder Rights Plan, effective February 16, 2000. The Rights outstanding
under the old Plan expired on February 16, 2000. The old Plan is described in
the Dividend Reinvestment Prospectus dated September 11, 1998.
In connection with the adoption of the new Plan, the Board of Directors declared
a dividend of one Right for each outstanding share of Common Stock payable on
February 16, 2000 (contemporaneously with the expiration of the Rights
outstanding under the old Plan) to shareholders of recorded at the close of
business on February 15, 2000, and the Company will grant one Right for each
share issued thereafter. No separate certificates will be issued. The Rights are
evidenced by existing stock certificates and no action is required on your part.
The Rights will expire on March 31, 2009.
Generally, in the event that any person commences a tender offer for 10% or more
of the Company's outstanding Common Stock, the Rights would trade separately and
become exercisable, entitling the holder of each Right (subject to specified
conditions) to purchase one one-hundredth of a share of a new series of the
Company's Preferred Stock at a purchase price of $70 per share. Upon any
acquisition by any person of 10% or more of the Company's outstanding Common
Stock, each unexercised Right would entitle the holder to purchase a number of
shares of the Company's Common Stock having a market value equal to two times
the $70 purchase price. If, after any such acquisition, the Company were
acquired in a merger or other business combination, each unexercised Right would
entitle its holder to purchase a number of the acquiring Company's Common Shares
having a market value of two times the purchase price. In no event would the
Rights be exercisable by the acquiring person or its affiliates. The Board of
Directors may choose to redeem the Rights before they become exercisable.
Except as otherwise indicated in this Supplement, the new Shareholder Rights
Plan is the same in all material respects as the old Plan, which is described in
the Dividend Reinvestment Prospectus dated September 11, 1998.
