E-Trade Financial Corp. said Thursday it will exchange about $1.74 billion in outstanding bonds for new convertible debt as part of an exchange offer that expired Wednesday.
The retail brokerage firm and bank is swapping out senior notes due in 2011 and other notes due in 2017 for new debt that can eventually be converted into common stock.
E-Trade has been trying to reduce its debt burden and bolster its capital position as it continues to face losses from real estate-related investments. Exchanging the debt allows it to cut interest payments and fortify its ownership base.
The New York-based financial firm lost $143.2 million, or 22 cents per share, during the second quarter. It also increased its provision for loan losses to $404.5 million from $319 million during the same quarter last year.
For the roughly $2.3 million in debt that was exchanged after the early period closed, investors will receive new notes that are exchangeable for common stock at a price of $1.551 per share.
Shares of E-Trade rose 6 cents, or 4.4 percent, to $1.44 in morning trading. Shares have traded between 59 cents and $3.91 during the past year.
About Stock Einstein
StockEinstein uses proprietary technologies coupled with years of experience to uncover stocks we feel have the greatest potential for breakout performance. We utilize not only software, but time tested criteria to uncover these potential winners. When these benchmarks are reached or exceeded, our subscribers are immediately notified.
This service is free and available only to subscribers. Scroll to the bottom of this page to signup for free stock alerts and visit our site.
Disclaimer: Full disclaimer at http://StockEinsteain.com/disclaimer.php
IMPORTANT: Never invest in any stock featured in any press release, email or website unless you can afford the loss of your entire investment. Stocks and particularly penny stocks have the possibility for dramatic gains, and also losses. Neither StockEinsteain, nor any of its affiliates are registered investment advisors or broker dealers.
