Successful bond buyback reduces E.ON’s gross debt by €1 billion

03.07.14

  • E.ON repurchases bonds ahead of maturity
  • Uses cash from asset sales

E.ON has reduced its gross debt by €1 billion. This is the result of an offer to bondholders to repurchase three bonds with maturities from 2015 until 2017 that have an aggregate nominal value of about €5 billion. The buyback offer was limited to a nominal value of about €1 billion. The eight-day offer period ended on 2 July 2014. Bonds with a total nominal value of about €1.5 billion were tendered for repurchase; of which E.ON has accepted the targeted €1.0 billion. Settlement will take place on 4 July 2014, marking the end of the buyback.

“By repurchasing €1 billion of bonds we continue to reduce outstanding debt early and thereby lessen our interest expenses in the years ahead,” CFO Klaus Schäfer said. “The liquidity used for the buyback resulted primarily from asset disposals.”

E.ON already conducted bond buybacks with a similar magnitude in order to reduce its gross debt in 2009 and 2011.

This press release may contain forward-looking statements based on current assumptions and forecasts made by E.ON Group management and other information currently available to E.ON. Various known and unknown risks, uncertainties and other factors could lead to material differences between the actual future results, financial situation, development or performance of the company and the estimates given here. E.ON SE does not intend, and does not assume any liability whatsoever, to update these forward-looking statements or to conform them to future events or developments.