E-Trade Financial closes debt exchange offer, issues new convertible debt
Associated Press
08/25/09 7:40 PM EDT
NEW YORK — Online broker E-Trade Financial Corp. said Tuesday that it closed its debt exchange offer for certain kinds of its outstanding interest-bearing notes.
In connection with the offer, E-Trade said it issued $1.74 billion of zero coupon Class A convertible debt and $2.3 million of zero coupon Class B convertible debt.
The Class A debt and Class B debt will be convertible into shares of the company's common stock at initial prices of $1.03 and $1.55 per share, respectively.
Based upon their initial conversion prices, the Class A debt will be convertible into 1.68 billion shares of common stock and the Class B debt will be convertible into 1.5 million shares of common stock, E-Trade said.
E-Trade shares fell 1 cent to $1.36 in morning trading.
