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So BGE issue a press release stating that they are about to restructure their debt. This is a normal part of any commercial enterprise. They hope to tap into the same investor demand seen last week when the ESB issued a similar bond. This is part of how large companies (in particular utilities like BGE) are financed.Tender offer for Bord Gais debt
Last Updated: Wednesday, November 21, 2012, 09:56
BNP Paribas has announced a tender offer for €550 million of Bord Gais Eireann's notes as part of a refinancing of the utility's debt.
"The purpose of the offer is to take advantage of currently favourable market conditions to lengthen and smooth the debt maturity profile of the company," a statement said.
The 5.75 per cent notes are due June 16th, 2014.
The company has also announced its intention to issue a series of new euro-denominated fixed rate notes under its Euro medium term note programme.
"Bord Gais is hoping to tap into some of the same investor demand seen last week when the ESB issued an earlier bond, '' said Ryan McGrath, an analyst at Dolmen Securities in Dublin, in a note today before the statement was released.
So they are selling IOU's assuming future earnings? Is that it? If you buy IOU notes for cash now you will get back the cash and interest?
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