New York-based E Trade Financial has launched debt exchange offer for some of its outstanding high-yield notes, subject to the conditions set forth in the offering memorandum and consent solicitation.
Affiliates of Citadel Investment Group, the company’s largest stock and bond holder, have agreed to participate in the exchange offer.
The company is offering to exchange more than $1 billion of newly-issued zero coupon Convertible Debentures due 2019, for all of its 8% Senior Notes due 2011 and a portion of its 12.5% Springing Lien Notes due 2017, together with the 2011 Notes. The company is offering to exchange $1,000 principal amount of debentures for every $1,000 principal amount of the notes tendered in the exchange offer.
JP Morgan Securities has been retained as its exclusive financial advisor in connection with the Exchange Offer.
E Trade Financial group of companies provides trading, investing and related banking products and services to retail investors.
