(Updates share price and to add detail)
NEW YORK (Thomson Financial) - Shares of E-Trade Financial fell Monday after
the online broker filed with the Securities and Exchange Commission for the sale
of certain stock and senior notes holdings by certain selling shareholders.
The company said it wouldn't receive any of the proceeds from the offerings,
which include 94.87 million common shares, $229.2 million in 8% senior notes due
2011, $256.6 million in 7.375% senior notes due 2013, $124.6 million in 7.875%
senior notes due 2015 and $1.67 billion worth of 12.5% springing lien notes due
2017.
Shareholders involved in the offerings include Citadel Investment Group,
currently the company's biggest stakeholder, Wingate Capital and BlackRock.
E-Trade received a $2.5 billion cash infusion from a group led by affiliates of
Citadel Investment in late November.
The stock was off 3% to $4.19 on volume of 15.2 million shares in midday
trading.
Michael Baron
mb/tk1
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