E*Trade gets $345 million 364-day senior revolver at Libor plus 225 bps

By Marisa Wong

Madison, Wis., June 26 – E*Trade Financial Corp.’s indirect subsidiary, E*Trade Clearing LLC, entered into a $345 million 364-day senior unsecured revolving credit facility on Friday, according to an 8-K filing with the Securities and Exchange Commission.

JPMorgan Chase Bank, NA is the administrative agent.

The company may request increases in the aggregate amount of commitments, up to a total of $155 million.

Loans will bear interest at Libor plus a fixed margin of 225 basis points.

The company will also pay a 75 bps commitment fee on the average daily unused portion of the facility.

The subsidiary will use the credit facility for short-term operational needs, including funding clearing agency margin deposits.

At closing, no amounts were outstanding under the facility.

The facility contains some financial maintenance covenants relating to E*Trade Clearing’s minimum consolidated tangible net worth and regulatory net capital ratio.

E*Trade is a New York-based financial services company.

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