Eurazeo (RF.FR) said Thursday it launches an offering of bonds exchangeable for existing Danone shares for an initial amount of approximately EUR500 million.

The amount may be increased up to approximately EUR600 million in the event of the exercise in full by Eurazeo of a 20 % increase option and up to a maximum of approximately EUR690 million in the event of the exercise in full of the over-allotment option granted to BNP Paribas and Calyon, Joint Lead- Managers and Joint Bookrunners of the offering.

The issue of the Bonds, representing initially as of Thursday approximately 40% of the Danone shares currently held by Eurazeo (through its subsidiary Legendre Holding 22), is part of its announced monetization strategy of its holding of Danone shares, which Eurazeo considers as liquid assets. This transaction will allow Eurazeo to benefit from the upside potential in the Danone share price, up to the issue premium, over a 5-year period. Eurazeo reaffirms its confidence in Danone's future prospects.

The increase in its sources of financing will allow Eurazeo to take advantage of new investment opportunities that could arise in the current economic and financial environment and to continue to support the development of the Group companies.

The issue will also allow Eurazeo to partially refinance its existing indebtedness relating to its holding in Danone, and to extend, for the refinanced portion, the duration of such financing to 5 years (with its maturity being extended from 2011 to 2014).

Subject to the final terms to be announced, Eurazeo expects to subscribe to the capital increase announced by Danone on May.25, 2009.

Subject to the final terms to be announced, Eurazeo expects to subscribe to the capital increase announced by Danone on May.25.

Company Web site: www.eurazeo.com