Published on 3/2/2015 in the Prospect News High Yield Daily.
New Issue: E*Trade prices $460 million 8.5-year notes at par to yield 4 5/8%
By Paul A. Harris
Portland, Ore., March 2 – E*Trade Financial Corp. priced a $460 million issue of 8.5-year senior notes (Ba2/BB-) at par to yield 4 5/8% in a quick-to-market transaction on Monday, according to a syndicate source.
The yield printed at the tight end of yield talk in the 4¾% area.
Morgan Stanley & Co. LLC, J.P. Morgan Securities LLC and Goldman Sachs & Co. were the joint bookrunners.
The New York-based financial services company plans to use the proceeds, along with existing corporate cash, to redeem all of its outstanding 2019 notes.
| Issuer: | E*Trade Financial Corp.
|
| Amount: | $460 million
|
| Maturity: | Sept. 15, 2023
|
| Securities: | Senior notes
|
| Bookrunners: | Morgan Stanley & Co. LLC, J.P. Morgan Securities LLC, Goldman Sachs & Co.
|
| Co-managers: | Credit Suisse Securities (USA) LLC, Wells Fargo Securities LLC
|
| Coupon: | 4 5/8%
|
| Price: | Par
|
| Yield: | 4 5/8%
|
| Spread: | 265 bps
|
| First call: | March 15, 2019 at 102.313
|
| Equity clawback: | 35% at 104.625 until March 15, 2018
|
| Trade date: | March 2
|
| Settlement date: | March 5
|
| Ratings: | Moody's: Ba2
|
| Standard & Poor's: BB-
|
| Distribution: | SEC registered
|
| Price talk: | 4¾% area
|
| Marketing: | Quick to market
|
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