E*Trade to price $450 million of mandatory convertibles; price talk seen during week of Nov. 7

By Rebecca Melvin

Princeton, N.J., Nov. 4 - E*Trade Financial Corp. plans to price $450 million of three-year mandatory convertibles together with concurrent offerings of common stock and senior notes during the week of Nov. 14, according to a syndicate source.

Price talk on the convertibles was seen coming during the week of Nov. 7.

The three offerings, also including $700 million of common stock and $250 million of senior notes, will finance the previously announced acquisition of BrownCo., the online brokerage service of JP Morgan, for $1.6 billion.

When E*Trade, a New-York based online brokerage, announced the deal Sept. 29, chief executive Mitchell Caplan said financing might fall along the lines of $700 million in equity, $450 million in convertibles and $450 million in senior notes, with draw down by $150 million of a $250 million bank revolver.

Morgan Stanley & Co. and J.P. Morgan Securities are acting as joint bookrunners for the off-the-shelf offerings.

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