Tuesday, November 24, 2009 6:20 AM
TD Ameritrade raises $1.25-billion
Andrew Willis
We try not to be cynical, or simple-minded, in this space, so we’ll give TD Ameritrade the benefit of the doubt on its recent $1.25-billion (U.S.) bond financing.
It is surely a coincidence that the discount brokerage is out raising a truck load of debt just a few days after its CEO confessed that yes, he would consider buying troubled rival E*Trade Financial if the terms were right.
Don’t forget, just a few words on the possibility of an acquisition from TD Ameritrade brass lit a fire under E*Trade’s stock price. But there’s nothing to see here, just move along.
TD Ameritrade, which features Toronto-Dominion Bank TD-T as a minority shareholder, sold bonds on Friday in both the U.S. and Canadian markets.
The company raised $250-million selling three-year notes, $500-million with a five-year issue, and $500-million of 10-year debt. That is a whole lot of locked-in capital.
The underwriting was led by Bank of America/Merrill Lynch, Citigroup and TD Securities.