eTrade 2005 Annual Report Download - page 74

million recorded in equity and $435 million in debt, respectively. Each purchase contract obligates the holder to purchase, and the
Company to sell, at a purchase price of $25.00 in cash, a variable number of shares of the Company’s common stock. The stock
conversion ratio varies depending on the average closing price of our common stock over a 20-day trading period ending on the third
trading day immediately preceding November18, 2008 (“Reference Price”.) If the Reference Price is equal to or greater than $21.816 per
share, the settlement rate will be 1.1459 shares of common stock. If the Reference Price is less than $21.816 per share but greater than
$18.00 per share, the settlement rate is equal to $25.00 divided by the Reference Price. If the Reference Price is less than or equal to
$18.00 per share, the settlement rate will be 1.3889 shares of common stock. The Company is obligated under the purchase contract to
sell shares of its common stock under the agreement in November 2008. In November 2008, the aggregate principal amount of the
senior notes will be remarketed, which may result in a change in the interest rate and maturity date of the senior notes.
Additionally, in 2005, we entered into a $250 million, three-year senior secured revolving credit facility, secured by certain of our
assets. The facility will be used for general corporate purposes, including regulatory capital needs arising from acquisitions. This
facility was unused in 2005 and requires us to maintain certain
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2006. EDGAR Online, Inc.