EXHIBIT 99.2
FOR IMMEDIATE RELEASE
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E*TRADE Media Contacts: Investor Contacts:
Heather Fondo Len Purkis
(650) 331-5248 (650) 331-6076
hfondo@etrade.com lpurkis@etrade.com
Bronwyn Wormell Susan Wolfrom
(650) 331-5978 (650) 331-5303
bwormell@blancandotus.com swolfrom@etrade.com
E*TRADE GROUP, INC. ANNOUNCES OFFERING OF
CONVERTIBLE SUBORDINATED NOTES
MENLO PARK, Calif., February 2, 2000 - E*TRADE Group, Inc. (Nasdaq: EGRP) today
announced that it is raising approximately $500 million through a private
offering of 6% convertible subordinated notes due 2007. The offering is
expected to close on February 7, 2000. The notes are convertible, at the option
of the holder, into shares of E*TRADE's common stock at a conversion price of
$23.60 per share, representing a conversion premium of 18% over the February 1,
2000 closing price, and will be non-callable for three years. E*TRADE has
granted the initial purchasers an option to purchase up to an additional $150
million of notes.
E*TRADE expects to use $150,000,000 of the net proceeds to refinance
outstanding senior secured indebtedness and the remaining net proceeds for
general corporate purposes, including financing the future growth of the
business.
The notes have been sold to qualified institutional buyers in a private
placement under Rule 144A under the Securities Act of 1933. This announcement
is neither an offer to sell nor a solicitation of an offer to buy any of these
securities.
The notes and the common stock issuable upon conversion have not been
registered under the Securities Act of 1933 and may not be offered or sold in
the United States absent registration or an applicable exemption from the
registration requirements under such Act.
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Important Notice
E*TRADE is a registered trademark of the company. All other trademarks are
properties of their respective owners. The statements contained in this news
release that are forward-looking are based on current expectations that are
subject to a number of uncertainties and risks, and actual results may differ
materially. The uncertainties and risks include, but are not limited to,
changes in market activity, market acceptance of the Destination E*TRADE web
site, anticipated increases in the rate of new customer acquisition, the
conversion of new visitors to the site to customers, seasonality, the
development of new products and services, the enhancement of existing products
and services, competitive pressures (including price competition), system
failures, economic and political conditions, changes in consumer behavior and
the introduction of competing products having technological and/or other
advantages. Further information about these risks and uncertainties can be
found in the information included in the annual report filed by the company with
the SEC on Form 10-K (including information under the caption "Risk Factors")
and quarterly reports on Form 10-Q.
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