E TRADE Financial Corp (ETFC)

[arnie70]

E*TRADE FINANCIAL Corporation Announces It Will Retire All $450 Million of Its 6.125% Subordinated Notes Due 2018
Thursday November 13, 4:05 pm ET

NEW YORK--(BUSINESS WIRE)--E*TRADE FINANCIAL Corporation (NASDAQ: ETFC - News) today announced that it will retire all $450 million of its 6.125% subordinated notes due 2018. The notes will be retired in connection with the issuance of 25 million shares of E*TRADE common stock on November 18, 2008, at an effective issue price of $18 per share. These notes are a part of the mandatory convertible debt securities E*TRADE issued in November 2005.

As stipulated by the terms of the notes, E*TRADE was required to attempt a remarketing to purchasers willing to pay par for the remarketed notes. As expected, the current turmoil in the credit markets prevented a successful remarketing. There will be no net receipt or outlay of cash by E*TRADE in connection with the issuance of the common stock and retirement of the notes.