E*Trade obtains $400 million 364-day revolver at Libor plus 175 bps

By Marisa Wong

Morgantown, W.Va., June 27 – E*Trade Financial Corp.’s indirect subsidiary, E*Trade Clearing LLC, entered into a $400 million senior unsecured revolving credit facility on June 24 with JPMorgan Chase Bank, NA as administrative agent, according to an 8-K filing with the Securities and Exchange Commission.

The 364-day credit facility replaces the company’s 364-day senior unsecured revolving credit facility entered into on June 26, 2015.

Loans will accrue interest at Libor plus a fixed margin of 175 basis points. The company will also pay a 37.5 bps commitment fee on the average daily unused portion of the facility.

The company may request increases in the aggregate amount of commitments totaling up to $200 million.

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

As of Friday, no amounts were outstanding under the new facility.

E*Trade is an online brokerage firm with headquarters in New York.

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