Davis Polk Advises E*TRADE on Its $400 Million Preferred Stock Offering

Davis Polk advised E*TRADE Financial Corporation (“E*TRADE”) in connection with its $400 million SEC-registered offering of 400,000 shares of its fixed-to-floating-rate non-cumulative perpetual preferred stock, Series A. E*TRADE intends to use all of the net proceeds from the offering, along with existing cash, to finance its previously announced acquisition of Aperture New Holdings, Inc., the ultimate parent company of OptionsHouse, Inc. The transaction is E*TRADE’s inaugural preferred stock offering.  

E*TRADE and its subsidiaries provide financial services including online brokerage and related banking products and services to retail investors.

The Davis Polk corporate team included partner Sarah K. Solum, counsel Jeffrey Gould and associate Donald K. Lang. The tax team included partner Rachel D. Kleinberg and associates Sarah Joy and Mahalia S. Burford. Counsel Daniel E. Newman and associates Polly Klyce Pennoyer and Hallie T. Damon provided financial institutions advice. Counsel Sarah E. Kim provided 1940 Act advice. Members of the Davis Polk team are based in the Northern California and New York offices.