By Paul A. Harris
St. Louis, Oct. 28 - E*Trade Financial Corp. priced a $250 million add-on to its 7 3/8% senior notes due Sept. 15, 2013 (existing ratings B1/B) at 99.00, resulting in a yield of 7.54%, according to a syndicate source.
There was no official price talk on the reverse inquiry-driven deal, the source added.
Morgan Stanley and JP Morgan were joint bookrunners for the Rule 144A add-on. The co-managers were Harris Nesbitt, Piper Jaffray, BNY Securities and Wells Fargo Securities.
The add-on notes are fully fungible with the existing notes.
Proceeds will be used to help fund E*Trade's proposed acquisition of BrownCo from JPMorgan Chase.
The original $350 million issue priced at par on Sept. 14, 2005. The total issue size following the add-on is $600 million.
E*Trade is a New York City-based online brokerage.
| Issuer: | E*Trade Financial Corp.
|
| Amount: | $250 million
|
| Description: | Add-on to the 7 3/8% senior notes
|
| Bookrunners: | Morgan Stanley, JP Morgan
|
| Co-managers: | Harris Nesbitt, Piper Jaffray, BNY Securities, Wells Fargo Securities
|
| Maturity: | Sept. 15, 2013
|
| Coupon: | 7 3/8%
|
| Price: | 99.00
|
| Yield: | 7.54%
|
| Spread: | 302 basis points
|
| Call protection: | Callable on Sept. 15, 2009 at 103.688, 101.844, par on and after Sept. 15, 2011
|
| Equity clawback: | Until Sept. 15, 2008 for 35% at 107.375
|
| Trade date: | Oct. 27
|
| Settlement date: | Nov. 10 with accrued interest
|
| Existing ratings: | Moody's: B1
|
| Standard & Poor's: B
|
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