E*TRADE Financial Corporation (NASDAQ: ETFC) today announced that it has priced an offering of $1,305 million in aggregate principal amount of Senior Notes in two tranches, issued at par. The first tranche of $505 million aggregate principal amount of Senior Notes due 2017 will bear interest at an annual rate of 6.000% and are callable beginning November 15, 2014. The second tranche of $800 million aggregate principal amount of Senior Notes due 2019 will bear interest at an annual rate of 6.375% and are callable beginning November 15, 2015. E*TRADE expects to close the sale of the notes on November 14, 2012 subject to the satisfaction of the customary closing conditions.
E*TRADE will use the net proceeds from the sale of the notes to redeem all of its outstanding 12.500% Springing Lien Notes due 2017 and all of its 7.875% Senior Notes due 2015 for an aggregate redemption price of $1,305 million, which includes the associated redemption premiums, principal amount, accrued interest and related fees and expenses.
BofA Merrill Lynch, Goldman, Sachs & Co. and Morgan Stanley are serving as joint lead book-runners for the offering.
The offering of the notes is made only by means of a prospectus supplement and the accompanying prospectus, copies of which may be obtained from BofA Merrill Lynch, 222 Broadway, 11th Floor, New York, NY 10038, Attention: Prospectus Department or by e-mail: email@example.com.This press release does not constitute an offer to sell or a solicitation of an offer to buy any of the notes or any other securities, nor will there be any sale of the notes or any other securities in any state or jurisdiction in which such an offer, solicitation or sale is not permitted. About E*TRADE Financial The E*TRADE Financial family of companies provides financial services including online brokerage and related banking products and services to retail investors. Specific business segments include Trading and Investing and Balance Sheet Management. Securities products and services are offered by E*TRADE Securities LLC (Member FINRA/SIPC). Bank products and services are offered by E*TRADE Bank, a Federal savings bank, Member FDIC, or its subsidiaries and affiliates. More information is available at www.etrade.com. Important Notices E*TRADE Financial, E*TRADE and the E*TRADE logo are trademarks or registered trademarks of E*TRADE Financial Corporation. ETFC-G
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