E*TRADE Financial Corporation Announces Pricing of Senior Notes
August 15 2017 - 03:53PM
Business Wire
E*TRADE Financial Corporation (NASDAQ:ETFC) today announced the
pricing of $1 billion in aggregate principal amount of Senior Notes
in two tranches. The first tranche of $600 million aggregate
principal amount of Senior Notes due 2022 will bear interest at an
annual rate of 2.95% and will mature on August 24, 2022. The second
tranche of $400 million aggregate principal amount of Senior Notes
due 2027 will bear interest at an annual rate of 3.80% and will
mature on August 24, 2027 (collectively, the “Senior Notes”).
E*TRADE expects to close the sale of the notes on August 24, 2017
subject to the satisfaction of customary closing conditions.
Both tranches will pay interest semi-annually and will be
E*TRADE’s general unsecured senior obligations. The notes will
effectively rank junior to the Company’s secured indebtedness, if
any, to the extent of the collateral securing such indebtedness and
structurally subordinated to all liabilities of the Company’s
subsidiaries. The notes will not be guaranteed by E*TRADE’s
subsidiaries.
E*TRADE will use the net proceeds from this offering, along with
existing corporate cash, to redeem all of the outstanding $540
million aggregate principal amount of its 5.375% Senior Notes due
2022 and all of the outstanding $460 million aggregate principal
amount of its 4.625% Senior Notes due 2023 (collectively, the
“Existing Notes”) and to pay the associated redemption premiums,
accrued and unpaid interest, and related fees and expenses. This
press release does not constitute a notice of redemption with
respect to the Existing Notes.
Credit Suisse, J.P. Morgan, BofA Merrill Lynch and Wells Fargo
Securities are serving as joint book-running managers for the
offering.
E*TRADE has filed an effective registration statement (including
a preliminary prospectus supplement and accompanying base
prospectus) with the Securities and Exchange Commission (SEC) for
the offering to which this communication relates. Before you
invest, you should read the effective registration statement
(including the preliminary prospectus supplement and accompanying
base prospectus) for more complete information about E*TRADE and
this offering. You may obtain these documents for free by visiting
EDGAR on the SEC website at www.sec.gov. Alternatively, copies may
be obtained from Credit Suisse Securities (USA) LLC at One Madison
Avenue, New York, NY 10010, Attention: Prospectus Department, by
telephone at 1-800-221-1037 or by emailing
newyork.prospectus@credit-suisse.com; J.P. Morgan Securities LLC at
383 Madison Avenue, New York, New York, 10179, Attention:
Investment Grade Syndicate Desk, 3rd Floor, by telephone at
1-212-834-4533; Merrill Lynch, Pierce, Fenner & Smith
Incorporated at NC1-004-03-43, 200 North College Street, 3rd Floor,
Charlotte, North Carolina 28255, Attention: Prospectus Department,
by telephone at 1-800-294-1322 or by emailing
dg.prospectus_requests@baml.com; Wells Fargo Securities, LLC 608
2nd Avenue South, Suite 1000, Minneapolis, Minnesota 55402,
Attention: WFS Customer Service, by telephone at 1-800-645-3751 or
by emailing wfscustomerservice@wellsfargo.com.
This press release does not constitute an offer to sell or a
solicitation of an offer to buy any of the Existing Notes or the
Senior Notes or any other securities, nor will there be any sale of
the Existing Notes or the Senior Notes or any other securities in
any state or jurisdiction in which such an offer, solicitation or
sale is not permitted.
About E*TRADE Financial
E*TRADE Financial and its subsidiaries provide financial
services including online brokerage and related banking products
and services to retail customers. Securities products and services
are offered by E*TRADE Securities LLC (Member FINRA/SIPC/NFA) and
OptionsHouse (Member FINRA/SIPC/NFA). Bank products and services
are offered by E*TRADE Bank, a Federal savings bank, Member FDIC,
or its subsidiaries. More information is available at
www.etrade.com.
ETFC-G
Important Notices
E*TRADE Financial, E*TRADE, the E*TRADE logo, and OptionsHouse
are trademarks or registered trademarks of E*TRADE Financial
Corporation.
Forward looking statements
The statements contained in this news release that are forward
looking, including statements regarding the completion, timing, and
size of the proposed public offering and the related planned
redemption are “forward-looking statements” within the meaning of
the safe harbor provisions of the U.S. Private Securities
Litigation Reform Act of 1995 and are subject to a number of
uncertainties and risks. Actual results may differ materially from
those indicated in the forward-looking statements. The
uncertainties and risks include, but are not limited to,
uncertainties and risks related to market volatility and other
market conditions, the satisfaction of customary closing conditions
related to the public offering. There can be no assurance that the
public offering will be completed on the anticipated terms, or at
all. Further information about these risks and uncertainties can be
found in the preliminary prospectus supplement as well as the
annual, quarterly, and current reports on Form 10-K, Form 10-Q, and
Form 8-K previously filed by E*TRADE Financial Corporation with the
Securities and Exchange Commission (including information in these
reports under the caption “Risk Factors”). Any forward-looking
statement included in this release speaks only as of the date of
this communication; the Company disclaims any obligation to update
any information.
© 2017 E*TRADE Financial Corporation. All rights reserved.
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