Published on 6/2/2004 in the Prospect News High Yield Daily.
New Issue: E*Trade sells $400 million seven-year notes to yield 8%
By Paul A. Harris
St. Louis, June 2 - E*Trade Financial Corp. sold $400 million of seven-year senior notes (B1/B+) at par on Wednesday to yield 8%, according to a syndicate source.
Price talk was 7½% to 7¾%.
Morgan Stanley ran the books on the Rule 144A/Regulation S issue, which included registration rights. The co-managers were Credit Suisse First Boston, Deutsche Bank Securities and Sandler O'Neill.
Proceeds will be used to fund the redemption of $162.5 million of convertible subordinated notes, including either or both the 6% notes due 2007 and the 6¾% notes due 2008, and for general corporate purposes.
The issuer is a New York City-based online brokerage company.
Issuer: | E*Trade Financial Corp.
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Amount: | $400 million
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Maturity: | June 15, 2011
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Security description: | Senior notes
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Bookrunner: | Morgan Stanley
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Co-managers: | Credit Suisse First Boston, Deutsche Bank Securities, Sandler O'Neill
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Coupon: | 8%
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Price: | Par
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Yield: | 8%
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Spread: | 359 basis points
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Call features: | Callable after June 15, 2008 at 104, 102, par on or after June 15, 2010
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Equity clawback: | Until June 15, 2007 for 35% at 108
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Pricing date: | June 2
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Settlement date: | June 8
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Ratings: | Moody's: B1
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| Standard & Poor's: B+
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Distribution: | Rule 144A and Regulation S with registration rights
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Price talk: | 7½% to 7¾%
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