E*Trade seeks $1.4 billion through stock offering, debt exchange
E*Trade Financial Corp., looking to boost its bank’s capital, announced Wednesday a common stock offering and debt exchange worth about $1.4 billion.
The company said it would also launch a debt exchange transactions for a certain number of its outstanding notes. It will offer to exchange more than $1 billion of newly-issued debt for 8 percent of its senior notes due in 2011 and a portion of notes due in 2017.
Companies affiliated with Citadel Investment Group LLC, the company’s largest stock and bond holder, have agreed to participate in the transactions, E*Trade said.
Citadel will purchase between $50 million and $100 million of stock, depending on the public offering price.
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