E.ON has successfully extended the 364-day tranche (Tranche A) its syndicated credit facility at a volume of €7.5 billion. The facility matures on November 26, 2009. Despite current market conditions, the facility was significantly oversubscribed, with banks offering a total of about €9 billion, well over the €7.5 billion E.ON had sought to extend. The company's roughly €5 billion long-term tranche (Tranche B) remains in place through December 2, 2011, giving E.ON a total of €12.5 billion in credit fa-cilities as a backup for its commercial paper programs.
The bookrunners and mandated lead arrangers for the transaction were the Bank of Tokyo-Mitsubishi UFJ Ltd., Barclays Capital, Bayerische Hypo- und Vereinsbank AG, BNP Paribas, CALYON, Citigroup Global Markets Limited, Deutsche Bank AG, Dresdner Kleinwort, Dresdner Bank AG’s Investment Banking Division, HSBC Bank plc, J.P. Morgan plc, and the Royal Bank of Scotland.
E.ON yesterday also issued two bonds through E.ON International Finance B.V.: a €1 billion bond and a CHF 250 million bond. E.ON issued the bonds in €1,000 and CHF 5,000 increments in order to attract retail investors and thus further diversify its inves-tor base.
The two-year euro-denominated bond, which carries an annual coupon rate of 4.75 percent, was issued at 99.853 percent of par. BNP Paribas, DZ Bank, and Unicredit (HVB) acted as joint bookrunners. Strong demand saw the bond more than doubly oversubscribed within a few hours.
The four-year Swiss-frank bond has an annual coupon rate of 3.875 percent and was issued through UBS.
E.ON CFO Marcus Schenck said, "In view of the difficult situation on financial mar-kets -- particularly for banks --the extension of our credit facility is a noteworthy suc-cess. We’d like to thank our bank partners for continuing to support us in this difficult environment. By issuing two bonds in different currencies on the same day, E.ON has demonstrated its flexibility and its determination to implement its financial strategy."