Essen, 01 July 2004
RWE Makes Bond Tender and Exchange Offer and Optimizes Financial Structure
- Swap and buyback of bonds with transaction volume total of up to €2 billion
- €2.5 bn 5.500% RWE Finance BV notes (due October 26, 2007)
- €2.0 bn 5.375% RWE Finance BV notes (due April 18, 2008)
- Two separate tranches including
- Exchange into new bond maturing 2014
- Tender offer against cash
- RWE Group reduces gross debt even further
RWE Finance B.V., a wholly owned subsidiary of RWE AG, Essen, today announced the simultaneous launch of a tender offer to buy back or exchange against a new 10 year bond. The transaction volume amounts to up to €2 billion and refers to:
- €2.5 billion 5.500% notes due October 26, 2007
- €2.0 billion 5.375% notes due April 18, 2008.
Investors are invited to submit bids for both offers. The new bond will mature in July 2014 and have a benchmark size of no less than €500 million. Dr. Klaus Sturany, CFO of RWE AG, commented: “By making this attractive offer to investors, we are taking advantage of the favorable market environment while optimizing our financial structure by further reducing gross debt and stretching the maturity profile of our outstanding bonds.”
Cash buyback offer
RWE Finance B.V. will accept offers of up to €1 billion, the minimum amount being €0.5 billion.
The new bond which will mature in 2014, will be issued under the existing Debt Issuance Programme, guaranteed by RWE AG and listed on the Luxembourg Stock Exchange. RWE Finance B.V. will accept a maximum of €1.5 billion, the minimum being €0.5 billion.
Both offers will run simultaneously on an identical timetable. The final spreads for the two offers will be announced on July 8, 2004. Offers will be accepted until 17:00 CEST on July 14, 2004. Pricing for both tranches (cash buyback and new bond) will be on July 15, 2004.
Due to legal constraints these offers explicitly exclude investors in the US, Italy, and Spain. Further restrictions are laid out in the offer memorandum.
RWE Finance B.V. reserves the right to waive, amend, terminate r withdraw the aforementioned offers at any time.
Barclays Capital, Deutsche Bank and HSBC are acting as joint dealer managers for the two offers.
ABN AMRO and Merrill Lynch were appointed Co-Dealer Managers. Details of the offers are set out in the offer memorandum dated July 1, 2004.
Please contact our Investor Relations Team with any questions that you may have:
Altenessener Straße 27
T +49 (0) 201-5179-3112
c/o RWE Supply & Trading
60 Threadneedle Street
London EC2R 8HP
T +44 (0) 20 7015 5459
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