As announced last November, E.ON intends to use part of the proceeds from the sale of operations to reduce its group debt. In this regard, E.ON made a two-step offer to bondholders on 24 January to repurchase several bonds with a total nominal value of approx. € 7billion. The two-week term for the offer expired last Friday.
In a first step, € 1.15billion of three bonds have been bought back. In the second week, E.ON then made another limited buyback offer of €650 million for three further bonds through an auction procedure. In this second step, E.ON bonds with a total nominal value of €777 million were tendered and E.ON accepted €656 million thereof. Only those bonds tendered at the minimum price offered by E.ON have been repurchased.
As a result, bonds with a total nominal value of €1.81 billion have been bought back and E.ON’s gross debt is reduced accordingly.
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Source: E.ON, February 9, 2011;