Eurazeo SA (RF.FR) launched Thursday an offering of bonds exchangeable for existing Groupe Danone SA (BN.FR) shares for an initial amount of approximately EUR500 million, increased to approximately EUR610 million through the exercise in full by Eurazeo of its increase option.

The offering size may be further increased to a maximum of approximately EUR700 million in the event of an exercise in full of the over-allotment option granted to BNP Paribas and Calyon, joint lead-managers and joint bookrunners of the offering.

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).