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E*Trade Financial Swaps Shares for Debt

E*Trade Financial, the online broker, Thursday disclosed that it swapped 3.53 mln shares earlier this month for $16 million of outstanding debt.

E*Trade in a Securities and Exchange Commission filing said that between May 1 and May 16 it exchanged the stock for $11 million of 7-3/8 percent notes maturing in 2013 and $5 million of 7-7/8 percent notes due 2015.

Based on Wednesday's closing price, the shares swapped are worth about $13.9 million.

The broker also said it amended its bylaws so that directors running in uncontested elections must receive a majority of shares cast, not merely a plurality.

Directors failing to win a majority of the votes are now required to resign.