E*TRADE Financial Corporation Announces Pricing of Senior Notes
NEW YORK -- November 06, 2012
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: firstname.lastname@example.org.
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.
E*TRADE Financial, E*TRADE and the E*TRADE logo are trademarks or registered
trademarks of E*TRADE Financial Corporation. ETFC-G
Forward-Looking Statements: This press release contains forward-looking
statements, including statements relating to E*TRADE’s expectations regarding
the completion, timing and size of the proposed public offering. These
forward-looking statements are based on current expectations that are subject
to a number of uncertainties and risks, and actual results and the timing of
events may differ materially. The uncertainties and risks include, but are not
limited to, uncertainties and risks related to market conditions and the
satisfaction of customary closing conditions related to the public offering.
There can be no assurance that the public offering will be completed on the
anticipated terms, or at all. Additional risks and uncertainties can be found
in the annual, quarterly and current reports on Form 10-K, Form 10-Q, and Form
8-K previously filed by E*TRADE with the Securities and Exchange Commission
(including information in these reports under the caption “Risk Factors”). Any
forward-looking statement included in this release speaks only as of the date
of this communication; the Company disclaims any obligation to update any
© 2012 E*TRADE Financial Corporation. All rights reserved.
E*TRADE Financial Media Relations
Robert Horton, 646-521-4418
E*TRADE Financial Investor Relations
Brett Goodman, 646-521-4406
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