Rule 424(b)(3)
SEC File No. 333-37004
Prospectus Supplement dated November 2, 2000
to Prospectus dated July 25, 2000
RATEXCHANGE CORPORATION
Common Stock
This Prospectus Supplement should be read in conjunction with the
Prospectus dated July 25, 2000, as previously supplemented (the "Prospectus").
The information on pages 11-16 of the Prospectus setting forth information
concerning the selling stockholders is superceded by the following table:
<TABLE>
<CAPTION>
Shares Maximum Shares Beneficially
Beneficially Number of Owned after
Owned Shares to be Offering (assuming Percentage of Common
Name of Selling Stockholder and Material Prior to Sold in all shares offered Stock Beneficially
Relationship, if any, with RateXchange Offering Offering are actually sold) Owned after Offering
------------------------------------------------ -------------- -------------- -------------------- ---------------------
<S> <C> <C> <C> <C>
ACDC Bookfront & Co. ........................... 246,900 246,900 0 *
(AIM Equity Funds, Inc. on behalf of its
portfolio, AIM Capital
Development Fund)
Altar Rock Fund, LP ............................ 836 836 0 *
American Masters Fund (Hilspen Series) ......... 8,400 8,400 0 *
Apodaca Investment Offshore Ltd. ............... 75,000 75,000 0 *
Apodaca Investment Partners, L.P. .............. 50,000 50,000 0 *
Bald Eagle Fund, Ltd. .......................... 2,250 2,250 0 *
Band and Co., Nominee for Firstar .............. 62,499 62,499 0 *
Barr, Alison A. ................................ 18,750 18,750 0 *
Betje Partners, LP ............................. 24,125 24,125 0 *
Bi Coastal Consulting Corp. .................... 25,000 25,000 0 *
Cannell, Carlo J. .............................. 33,750 33,750 0 *
Cohanzick Partners, LP ......................... 12,500 12,500 0 *
Cole, Douglas .................................. 868,151 100,000 768,151 3.77%
Consultant and Former Director
and Executive Officer of RateXchange
Corporation
Columbus Avenue Advisors ....................... 45,000 45,000 0 *
Counterpoint Master L.L.C. ..................... 237,500 237,500 0 *
Andrew Brown shares voting and
disposition power over the securities
held by this stockholder and offered
pursuant to this prospectus
Cypress VI Partners ............................ 12,500 12,500 0 *
Leonard Eber, as Managing Partner for
the Eber Family Living Trust and the
Eber Family Trusts Numbered One
through Four, shares voting and
disposition power over the securities
held by this stockholder and offered
pursuant to this prospectus
Donaghy Sales, Inc. ............................ 23,000 21,000 2,000 *
Gruber & McBain Capital Management
L.L.C. shares voting and disposition
power over the securities held by this
stockholder and offered pursuant to
this prospectus
</TABLE>
1
<PAGE>
<TABLE>
<CAPTION>
Shares Maximum Shares Beneficially
Beneficially Number of Owned after
Owned Shares to be Offering (assuming Percentage of Common
Name of Selling Stockholder and Material Prior to Sold in all shares offered Stock Beneficially
Relationship, if any, with RateXchange Offering Offering are actually sold) Owned after Offering
---------------------------------------------- -------------- -------------- -------------------- ---------------------
<S> <C> <C> <C> <C>
Edward O. Thorp & Associates, L.P. ........... 12,500 12,500 0 *
Elbaz, Elliott S. ............................ 11,250 11,250 0 *
Ellis, Ian P. ................................ 6,250 6,250 0 *
First Security Van Kasper .................... 564,020 564,020 0 *
Placement Agent for RateXchange I,
Inc. January 2, 2000 Bridge Loan;
Co-Underwriter for RateXchange
Corporation March 2000 Private
Placement; D. Jonathan Merriman,
Former Senior Managing Director of
First Security Van Kasper, is a Director
and President and Chief Executive
Officer of RateXchange Corporation
Five Points Fund, L.P. ....................... 75,000 75,000 0 *
Five Points Offshore Fund, Ltd. .............. 50,000 50,000 0 *
Forsythe McArthur Associates, Inc. ........... 69,500 69,500 0 *
Lessor of RateXchange
Gerard, Klauer, Mattison & Co., Inc. ......... 3,975 3,975 0 *
Placement Agent for RateXchange I,
Inc. January 2, 2000 Bridge Loan
Germanotta, Joe .............................. 2,852 2,852 0 *
Former Consultant to RateXchange
Gilston Corporation, Ltd. .................... 31,250 31,250 0 *
Golby, Wesley ................................ 4,500 4,500 0 *
Grange, Richard C. ........................... 84,404 84,404 0 *
Former Director of predecessor of
RateXchange I, Inc.
Gruber Family Foundation ..................... 11,418 11,418 0 *
Gruber & McBain Capital Management
L.L.C. shares voting and disposition
power over the securities held by this
stockholder and offered pursuant to
this prospectus
Gruber-McBaine International ................. 121,282 112,782 8,500 *
Gruber & McBain Capital Management
L.L.C. shares voting and disposition
power over the securities held by this
stockholder and offered pursuant to
this prospectus
Grunewald, Brad K. ........................... 73,601 73,601 0 *
Guarantee & Trust Company TTEE FBO, .......... 12,500 12,500 0 *
Paul Dwork Sep IRA
Hare & Co. 651653 (Hamilton College) ......... 17,351 17,351 0 *
Gruber & McBain Capital Management
L.L.C. shares voting and disposition
power over the securities held by this
stockholder and offered pursuant to
this prospectus
</TABLE>
2
<PAGE>
<TABLE>
<CAPTION>
Shares Maximum Shares Beneficially
Beneficially Number of Owned after
Owned Shares to be Offering (assuming Percentage of Common
Name of Selling Stockholder and Material Prior to Sold in all shares offered Stock Beneficially
Relationship, if any, with RateXchange Offering Offering are actually sold) Owned after Offering
------------------------------------------------ -------------- -------------- -------------------- ---------------------
<S> <C> <C> <C> <C>
Hare & Co. 705286 (L-3 Communications
Corp.) ........................................ 7,784 5,784 2,000 *
Gruber & McBain Capital Management
L.L.C. shares voting and disposition
power over the securities held by this
stockholder and offered pursuant to
this prospectus
Hart, Patti S. and Milledge A. ................. 12,500 12,500 0 *
Hicks, Ian and Anna ............................ 20,000 10,000 10,000 *
Hilspen Capital Partners ....................... 4,350 4,350 0 *
Hilspen Capital Partners, II ................... 24,750 24,750 0 *
Intercoastal Financial Services Corp. .......... 100,000 100,000 0 *
Irvine Capital Partners, II LP ................. 25,000 25,000 0 *
The Kaufmann Fund .............................. 62,500 62,500 0 *
Kensington Partners, L.P. ...................... 9,687 9,687 0 *
Kensington Partners II, L.P. ................... 563 563 0 *
Kingdon Associates ............................. 37,500 37,500 0 *
Kingdon Family Partnership, L.P. ............... 9,375 9,375 0 *
Kingdon Partners ............................... 23,750 23,750 0 *
Lagunitas Partners, L.P. ....................... 238,882 225,882 13,000 *
Gruber & McBain Capital Management
L.L.C. shares voting and disposition
power over the securities held by this
stockholder and offered pursuant to
this prospectus
Liberty-Stein Roe Small Company Growth ......... 12,500 12,500 0 *
Fund
Maroon Bells Capital Partners .................. 1,800,844 453,375 1,302,469 6.42%
Significant Stockholder and Party to
Financial Advisory Agreement with
RateXchange Corporation
Mayfield, Ross ................................. 230,738 16,675 214,063 1.04%
Former Executive Officer of
RateXchange Corporation
Mehra, Raj ..................................... 1,250 1,250 0 *
Metzman, Mitch A. .............................. 12,500 12,500 0 *
MJE Partners ................................... 6,250 6,250 0 *
M. Kingdon Offshore, N.V. ...................... 179,375 179,375 0 *
Mooney, Edward ................................. 576,667 100,000 476,667 2.34%
Former Executive Officer and Director
of RateXchange Corporation, Currently
a consultant to RateXchange; Party to
Severance Agreement with RateXchange
New-Day Investment Partnership, L.P. ........... 12,500 12,500 0 *
North Olmsted Partners, LP ..................... 12,500 12,500 0 *
Omni Resources, LLC ............................ 12,500 12,500 0 *
Ozada, Erinch R. ............................... 6,250 6,250 0 *
Park Avenue Cons. Group ........................ 116,522 116,522 0 *
</TABLE>
3
<PAGE>
<TABLE>
<CAPTION>
Shares Maximum Shares Beneficially
Beneficially Number of Owned after
Owned Shares to be Offering (assuming Percentage of Common
Name of Selling Stockholder and Material Prior to Sold in all shares offered Stock Beneficially
Relationship, if any, with RateXchange Offering Offering are actually sold) Owned after Offering
----------------------------------------------------- -------------- -------------- -------------------- ---------------------
<S> <C> <C> <C> <C>
Pequot Scout Fund, L.P. ............................. 250,001 250,001 0 *
Pequot Capital Management, Inc., as
investment advisor to this stockholder,
shares voting and disposition power
over the securities held by this
stockholder and offered pursuant to
this prospectus
Phaeton, B.V.I. ..................................... 49,625 49,625 0 *
Phoenix Partners, L.P. .............................. 51,250 51,250 0 *
Pilgrim Baxter Hybrid Partners I, L.P. .............. 112,500 112,500 0 *
Pilgrim Baxter & Assoc., Ltd., as
investment advisor to this stockholder,
shares voting and disposition power
over the securities held by this
stockholder and offered pursuant to
this prospectus
Pilgrim Baxter Hybrid Partners II, L.P. ............. 12,501 12,501 0 *
Pilgrim Baxter & Assoc., Ltd., as
investment advisor to this stockholder,
shares voting and disposition power
over the securities held by this
stockholder and offered pursuant to
this prospectus
Poe, Fred W. ........................................ 25,000 25,000 0 *
Prism Partners I, L.P. .............................. 75,000 52,500 22,500 *
Prism Partners II Offshore Fund ..................... 75,000 15,000 60,000 *
Prism Partners Offshore Fund ........................ 75,000 7,500 67,500 *
Quantum Partners LDC ................................ 500,000 500,000 0 *
Soros Fund Management LLC, as
Principal Investment Manager to this
stockholder, shares voting and
disposition power over the securities
held by this stockholder and offered
pursuant to this prospectus
Raptor Global Portfolio Ltd. ........................ 186,665 186,665 0 *
Rawitser, Michael ................................... 12,500 12,500 0 *
Retirement Plan of Space Systems/Loral Inc. ......... 5,784 5,784 0 *
--Kane & Co. P51455
Gruber & McBain Capital Management
L.L.C. shares voting and disposition
power over the securities held by this
stockholder and offered pursuant to
this prospectus
Rice, Philip ........................................ 27,500 12,500 15,000 *
Executive Officer of RateXchange
Corporation
Robb, Larry F. ...................................... 215,625 93,750 121,875 *
Rogers, Malcolm ..................................... 808,000 43,000 765,000 3.75%
Significant Stockholder
Janet L. Rogers shares voting and
disposition power over the securities
held by this stockholder and offered
pursuant to this prospectus
Scheele, Michael J. ................................. 381,313 121,313 260,000 1.27%
Consultant to RateXchange Corporation
</TABLE>
4
<PAGE>
<TABLE>
<CAPTION>
Shares Maximum Shares Beneficially
Beneficially Number of Owned after
Owned Shares to be Offering (assuming Percentage of Common
Name of Selling Stockholder and Material Prior to Sold in all shares offered Stock Beneficially
Relationship, if any, with RateXchange Offering Offering are actually sold) Owned after Offering
-------------------------------------------------- -------------- -------------- -------------------- ---------------------
<S> <C> <C> <C> <C>
Schottenfeld Associates, LP ...................... 62,500 62,500 0 *
Schow Family Trust ............................... 119,250 119,250 0 *
Sidana, Annupreet ................................ 11,250 11,250 0 *
Smith, Raymond M.; IRA Rollover Custodian ........ 31,250 31,250 0 *
Special Situations Cayman Fund, L.P. ............. 81,250 81,250 0 *
Special Situations Fund III, L.P. ................ 275,000 275,000 0 *
Special Situations Private Equity Fund, L.P. ..... 81,250 81,250 0 *
Special Situations Technology Fund, L.P. ......... 62,500 62,500 0 *
Spirit Fund, Ltd. ................................ 25,000 25,000 0 *
Stein Roe Variable Investment Trust Small ........ 37,500 37,500 0 *
Company Growth, Var Series
Suyama, Roger, Pacific Century ................... 12,500 12,500 0 *
Swindells, Theodore .............................. 1,900,844 45,000 1,402,469 6.92%
The Timken Living Trust U/A/D 9/14/99 ............ 62,500 62,500 0 *
Tirman Family Limited Partnership ................ 18,750 18,750 0 *
Geoffrey Tirman, General Partner of
Tirman Family Limited Partnership,
shares voting and disposition power
over the securities held by this
stockholder and offered pursuant to
this prospectus
Tonga Partners, LP ............................... 31,250 31,250 0 *
Cannell Capital Management shares
voting and disposition power over the
securities held by this stockholder and
offered pursuant to this prospectus
Trinity Fund, Ltd. ............................... 100,000 100,000 0 *
VICD Bipod & Co. ................................. 3,099 3,099 0 *
(AIM Variable Insurance Funds, Inc. on
behalf of its portfolio, AIM Capital
Development Fund)
Warren, Robin .................................... 17,342 17,342 0 *
Wescott, Jr, Paul A. ............................. 82,250 6,250 76,000 *
Former Executive Officer of
RateXchange Corporation
Whelan, Sean ..................................... 129,024 129,024 0 *
Founder and Former President of
RateXchange I, Inc., a subsidiary of
RateXchange Corporation
Windy Hill Investments NAMI, LLC ................. 12,500 12,500 0 *
WPG Institutional Networking Fund, L.P. .......... 3,750 3,750 0 *
WPG Institutional Software Fund, L.P. ............ 56,576 56,576 0 *
WPG Networking Fund, L.P. ........................ 30,912 30,912 0 *
WPG Raytheon Networking Fund, L.P. ............... 89,088 89,088 0 *
WPG Raytheon Software Fund, L.P. ................. 43,113 43,113 0 *
WPG Software Fund, L.P. .......................... 25,311 25,311 0 *
</TABLE>
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* The shares represent less than 1% of the outstanding shares of common stock.
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