June 19, 2009 (FinancialWire) — E-Trade Financial Corp. (NASDAQ: ETFC) has priced a registered public offering of 435 million shares of its common stock at $1.10 per share, for gross proceeds of $478.5 million. J.P. Morgan Securities (NYSE: JPM) and Sandler O’Neill & Partners, L.P. are acting as joint book-running managers.

The company has also granted the underwriters an option to purchase up to an additional 65 million shares of common stock on the same terms and conditions to cover over-allotments.

Affiliates of Citadel Investment Group purchased 90.9 million additional shares of common stock in the offering, which, upon the closing of the offering, will bring Citadel’s total ownership to around 17% of E-Trade Financial’s common stock.

E-Trade Financial said the proceeds from the offering will provide additional equity capital, primarily for E-Trade Bank and secondarily for other corporate purposes. The offering is scheduled to close on June 24.

New York-based E-Trade Financial’s companies provides financial services including trading, investing and related banking products and services to retail investors.

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