New Issue: E*Trade upsized $300 million 10-year notes yield 7 7/8%

By Paul A. Harris

St. Louis, Nov. 16 - E*Trade Financial Corp. priced an upsized $300 million issue of 10-year senior notes (B1/B+) at par to yield 7 7/8%, according to a syndicate source.

The yield came on top of the price talk.

Morgan Stanley and JP Morgan were joint bookrunners for the off-the-shelf issue. Harris Nesbitt, BNY Capital Markets, Piper Jaffray and Wells Fargo Securities are co-managers.

The New York-based online brokerage will use proceeds along with $700 million of common stock and $450 million of three-year mandatory convertible securities to help fund the $1.6 billion purchase of BrownCo from JPMorgan Chase & Co.

The issue was upsized from $250 million.

Issuer:	E*Trade Financial Corp.
Amount:	$300 million (increased from $250 million)
Maturity:	Dec. 1, 2015
Security description:	Senior notes
Bookrunners:	Morgan Stanley, JP Morgan
Co-managers:	Harris Nesbitt, BNY Capital Markets, Piper Jaffray, Wells Fargo Securities
Coupon:	7 7/8%
Price:	Par
Yield:	7 7/8%
Spread:	335 basis points
Call features:	Callable after Dec. 1, 2010 at 103.938, 102.625, 101.313 par on and after Dec. 1, 2013
Equity clawback:	Up to 35% for three years at 107.875
Trade date:	Nov. 16
Settlement date:	Nov. 22
Ratings:	Moody's: B1
	Standard & Poor's: B+
Price talk:	7 7/8% area

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