September 23, 2009 / 11:30 AM / 8 years ago

UPDATE 1-E*Trade raises $147 mln in stock offering

* E*Trade sells almost 80.23 million shares

* Company needs to shore up capital after losses

NEW YORK, Sept 23 (Reuters) - E*Trade Financial Corp (ETFC.O), the online broker that was humbled by the mortgage market crisis, raised $147 million of net proceeds through a common stock offering to shore up its capital base.

The company, which has reported eight straight quarterly losses as delinquencies and charge-offs mounted, said it sold almost 80.23 million shares of common stock.

The transaction resulted in gross proceeds of $150 million and net proceeds of approximately $147 million after deducting commissions and offering expenses.

Sandler O'Neill + Partners L.P. acted as sole distribution agent for the program.

Under pressure from regulators, the company completed a $586 million stock offer and a $1.76 billion debt swap to strengthen its balance sheet.

The moves were supported in large part by Citadel Investment Group, E*Trade's biggest shareholder.

E*Trade's troubles stem from loans its bank made earlier this decade in the real estate market. (Reporting by Juan Lagorio, editing by Maureen Bavdek)

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