E*Trade sets talk, to price $1.31 billion notes in two parts Tuesday

By Paul A. Harris and Aleesia Forni

Columbus, Ohio, Nov. 6 - E*Trade Financial Corp. has set talk for its proposed two-part offering of $1,305,000,000 senior notes (existing ratings B2/B-), a market source said.

Books close at 3 p.m. ET on Tuesday, and pricing is expected thereafter.

The notes due 2017 are being talked in the 6% area. The notes are non-callable.

The notes due 2019, which will be non-callable for three years, are being talked 25 bps to 37.5 bps behind the five-year notes.

Bank of America Merrill Lynch is the left bookrunner. Goldman Sachs & Co. and Morgan Stanley & Co. LLC are the joint bookrunners.

Both tranches of the Securities and Exchange Commission-registered notes carry a 101% poison put.

The New York-based provider of financial services will use the proceeds to fully redeem the company's 7 7/8% senior notes due 2015 and the 12½% springing-lien notes due 2017.

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