E*Trade Financial Makes Exchange Offer Progress
July 2, 2009
Financial services company E*Trade Financial has met with early success following the launch of an exchange offer, the New York-based company said today. The company will exchange approximately $1.7 billion in convertible debentures for about $1.83 billion in senior notes.
As of E*Trade's early tender deadline of July 1, bondholders have agreed to tender approximately $430 million of 8% senior notes due 2011 and $1.4 billion of 12.5% springing lien notes due 2017 in exchange for $1.7 billion in zero-coupon convertible debentures due 2019.
The final deadline for the offer will be determined by shareholders, who must approve the exchange. The company expects this to happen by mid-August.
E*Trade also won approval to amend indenture provisions governing the notes, and it will pay almost $25,000 in consent fees in the third quarter to bondholders who consented to the amendments without tendering. If the exchange offer does not go through, the company will pay about $9 million to holders who agreed to tender.
A company representative was not immediately available for comment.
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