E*Trade calls $162.5 million 6.75% convertibles

New York, April 29 - E*Trade Financial Corp. said it will redeem half or $162.5 million principal amount of its 6.75% convertible subordinated notes due 2008 on May 28.

The New York-based financial services company will pay $1,033.75 per $1,000 principal amount for the securities plus accrued interest to May 27.

Up to the close of business on May 27, holders can convert the notes into stock at a price of $10.925. E*Trade stock closed at $11.92 on Wednesday.

E*Trade also said its board of directors authorized a new $200 million repurchase program covering its common stock, its 6.75% convertibles and debt.

The company completed the previous $100 million repurchase program authorized on Dec. 17, 2003. It bought back 7.85 million shares at an average price of $12.73.

"The strength of the E*Trade Financial model has created this opportunity for us to generate long-term value for our bondholders and shareholders," said Mitchell H. Caplan, chief executive officer, in a news release. "We are pleased to have deployed a portion of our excess liquidity through an accretive stock repurchase program and we intend to continue to reduce our overall debt level and leverage over time."

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