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E*Trade completes $1.305B, 2-part offering; terms

E*Trade Financial today completed a $1.305 billion, two-part issue of SEC-registered senior notes via joint bookrunners Bank of America, Goldman Sachs, and Morgan Stanley. Pricing came at the midpoint of guidance for the five-year notes and at the wide end of talk for the longer-dated tranche. The online bank-and-brokerage firm will use proceeds from the deal to redeem the $930 million outstanding of its springing-lien 12.5% notes due 2017 as well as the $243 million left of the 7.875% notes due 2015. Terms:

 

Issuer E*Trade Financial
Ratings B-/B2
Amount $505 million
Issue senior notes (SEC Reg.)
Coupon 6.00%
Price 100
Yield 6.00%
Spread T+525
Maturity Nov. 15, 2017
Call nc2
Trade Nov. 6, 2012
Settle Nov. 14, 2012 (T+5)
Books BAML/GS/MS
Jt Leads
Co’s.
Px talk 6% area
Notes w/ two-year equity clawback for 35% @ 106; carries T+50 make-whole call.
Issuer E*Trade Financial
Ratings B-/B2
Amount $800 million
Issue senior notes (SEC Reg.)
Coupon 6.375%
Price 100
Yield 6.375%
Spread T+520
Maturity Nov. 15, 2019
Call nc3
Trade Nov. 6, 2012
Settle Nov. 14, 2012 (T+5)
Books BAML/GS/MS
Jt Leads
Co’s.
Px talk +25-37.5 bps
Notes w/ three-year equity clawback for 35% @ 106.375; carries T+50 make-whole call.

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