Eurazeo to redeem Danone exchangeable bonds ahead of maturity

By Marisa Wong

Madison, Wis., April 25 - Eurazeo SA announced the early redemption of its 6.25% bonds due 2014 exchangeable into Danone SA common stock.

Eurazeo said in a Thursday press release that over the past few days it has received early conversion requests from bondholders due to a higher Danone share price.

The company said that given the recent share price trend, it will exercise its early redemption option for those bonds whose conversion has not been requested.

The redemption is expected to eliminate €43.8 million of annual interest expense, the release noted.

Eurazeo chief financial officer and executive board member Philippe Audouin commented in the release, "The exchangeable bond issue made it possible for Eurazeo, a responsible Danone shareholder for over 25 years, to make an orderly and optimized exit from this company at conditions that were attractive in the sagging markets of early 2009.

"Following the redemption of these bonds, the Eurazeo group, no longer has any company debt, its net cash position exceeds €600 million and its pro forma net consolidated debt stands at €3.3 billion as at Dec. 31."

Eurazeo issued €700 million of the exchangeable bonds in June 2009.

Eurazeo is a Paris-based investment company. Danone is a Paris-based food processing company.

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