E.ON Successfully Completes Bond Buyback (Germany)

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;