E-Trade sees $1.8B tendered in debt exchange offer

Online brokerage E-Trade Financial Corp. said Thursday it has received tender offers worth $1.8 billion for a previously announced debt exchange offering.

The company said about $429.6 million of 2011 notes and approximately $1.4 billion of 2017 notes were tendered by the July 1 deadline. That includes $230.2 million of 2011 notes and $1 billion of 2017 notes tendered by affiliates of Citadel Investment Group.

The 2011 notes tendered represent Citadel's total holdings and about 97 percent of non-Citadel holdings, and the 2017 notes tendered represent the maximum of Citadel's commitment to participate in the exchange offer and about 99 percent of non-Citadel holdings.

The company had previously announced the exchange of more than $1 billion of newly issued zero coupon convertible debentures due 2019 for all of its 8 percent senior notes due 2011 and a portion of its 12.5 percent lien notes due 2017.

Assuming the exchange offer is completed, the debentures issued in exchange for any notes tendered by July 1 will have a conversion price of $1.0340 per share.

Shares of E-Trade were down 4 cents, or about 3 percent, to $1.31. They've traded between 59 cents and $4.05 in the past 52 weeks.