redbeard20000

E*Trade: A Solid, Deep Value Stock

I know you love links so heres one:

www.investopedia.com/t...

Read up on what a convertible bond actually is, cause its clear you have no clue. Citadel exchanges their bonds for stock, not their bonds and cash for stock. Just the bond for the stock.

Heres another link:

www.stchas.edu/coursed...

Check out BUS220, its a class that teaches you about such things, and it shouldn't be too hard to get accepted, even for you! I hope I'm not assuming too much by thinking you've graduated high school!

In the mean time, please feel free to stop posting stuff you know next to nothing about.


On Oct 22 02:56 PM User 488509 wrote:

> I don't believe I'm double counting anything , you and redbeard need
> to explain the June 22, 2009 PR that stated the terms of the exchange:
>
>
> "E*TRADE FINANCIAL Announces Debt Exchange Offer and Consent Solicitation
>
>
> NEW YORK, Jun 22, 2009 (BUSINESS WIRE) -- E*TRADE FINANCIAL Corporation
> (NASDAQ: seekingalpha.com/symbo...) today announced the
> launch of its debt exchange offer for certain of its outstanding
> high-yield notes (the "Exchange Offer"), on the terms and subject
> to the conditions set forth in the Offering Memorandum and Consent
> Solicitation dated June 22, 2009 (the "Offering Memorandum") and
> the related letter of transmittal (the "Letter of Transmittal").
> The consummation of the Exchange Offer will be subject to certain
> conditions, including the closing of the Company's previously announced
> registered public offering which priced on June 18, 2009, shareholder
> approval and regulatory approval. Affiliates of Citadel Investment
> Group L.L.C. ("Citadel"), the Company's largest stock and bond holder,
> have agreed to participate in the Exchange Offer.
>
> The Company is offering to exchange more than $1 billion of newly-issued
> zero coupon Convertible Debentures due 2019 (the "Debentures") for
> all of its 8% Senior Notes due 2011 (the "2011 Notes") and a portion
> of its 12.5% Springing Lien Notes due 2017 (the "2017 Notes", and
> together with the 2011 Notes, the "Notes"). The Company is offering
> to exchange $1,000 principal amount of Debentures for every $1,000
> principal amount of the Notes tendered in the Exchange Offer. The
> Exchange Offer is designed to significantly reduce the Company's
> debt service burden by eliminating interest costs relating to those
> debt securities that are exchanged and lengthening the weighted-average
> maturity of its debt securities. The Debentures will have a maturity
> of 10 years and will be convertible into shares of common stock at
> an initial conversion price of $1.0340 per share for Class A Debentures
> and $1.5510 per share for Class B Debentures, which is 150% of the
> initial conversion price of the Class A Debentures. The terms of
> the Class A Debentures and the Class B Debentures will be identical
> except for the initial conversion price. "
>
>
> To me it's quite clear , $1000 in notes will be Exchanged for $1000
> in debentures -that's even up.
> The debentures then give you the right at any time to buy shares
> at $1.034-very clear and simple.
> I'm not sure you two have ever understood this?
>
> There's a filing floating around somewhere in which ETFC announces
> it collected approx. $420m in proceeds from the conversion ,believe
> ETFC was aware of that incoming cash the Friday just before they
> announced the ATM offering. We'll see the item in Q4 report I believe
> but redbeard is correct that if all the debentures are converted
> ETFC will net approx. $1.7 Bill. at considerable dilution,of course.
>