Bloomberg the Company & Products

Bloomberg Anywhere Login

Bloomberg

Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.

Company

Financial Products

Enterprise Products

Media

Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000

Communications

Industry Products

Media Services

Follow Us

E*Trade Financial Sells $1.3 Billion Bonds for Debt Redemption

Nov. 6 (Bloomberg) -- E*Trade Financial Corp., the online brokerage catering to individual investors, sold $1.3 billion of bonds to help redeem debt.

The company issued $505 million of 6 percent, five-year debt to yield 525 basis points more than similar-maturity Treasuries and $800 million of 6.375 percent, seven-year notes at a relative yield of 520 basis points, according to data compiled by Bloomberg. Proceeds will be used to redeem all of its 12.5 percent securities due November 2017 and 7.875 percent bonds due December 2015, the New York-based company said in a statement yesterday.

The company previously sold debt in May 2011, issuing $435 million of 6.75 percent, five-year debentures to yield 494 basis points more than Treasuries, Bloomberg data show. The bonds traded at 108.5 cents on the dollar to yield 4.18 percent on Oct. 19, according to Trace, the bond-price reporting system of the Financial Industry Regulatory Authority.

Bank of America Corp., Goldman Sachs Group Inc. and Morgan Stanley managed the sale, Bloomberg data show.

To contact the reporter on this story: Sarika Gangar in New York at sgangar@bloomberg.net;

To contact the editor responsible for this story Alan Goldstein at agoldstein5@bloomberg.net;

Please upgrade your Browser

Your browser is out-of-date. Please download one of these excellent browsers:

Chrome, Firefox, Safari, Opera or Internet Explorer.