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ENDESA Places US$ 575 Million Of Long Term Debt In The US.

NEW YORK -- ENDESA:

--This is the largest operation carried out by a Spanish company on the US private market and the second largest by a European utility.

--Demand was US$ 727 million and the debt was issued at terms from 7 to 15 years.

--ENDESA takes up positions in the US market and diversifies its long term stable investor base.

--The funds obtained will enable the Company to refinance debt maturities and carry out its 2004-2008 Investment Plan which assigns Euro 9 billion to the Iberian market.

ENDESA (NYSE:ELE) has concluded its first private placement of long term debt in the US for an amount US$ 575 million. This is the largest operation carried out by a Spanish company on the US private market and the second largest by a European utility.

Demand was US$ 727 million and the debt was issued at terms from 7 to 15 years. This issue will enable ENDESA to refinance debt under more favourable terms and conditions than on the euromarket while also extending its average life. The funds in US$ of the transaction have been swapped into euros at a floating interest rate.

This issue of long term debt positions ENDESA in the US market with the aim of diversifying its stable, fixed income investor base and lengthening its debt maturity profile which was 5.2 years at 31 March 2004 vs 4.3 at the end of 2002.

To conclude the operation the Company held meetings and contacts with investors in twelve cities in the US between June 21 and 25. The funds obtained will enable the Company to refinance debt maturities and progress in its 2004-2008 Investment Plan which assigns Euro 9 billion to the Iberian market, making ENDESA the biggest investor in basic infrastructure on this market. Euro 5.5 billion will be spent on mainland and island and special regime generation while a little over Euro 3.3 billion will be used to improve electricity distribution infrastructure.

It is worth recalling that on 2 July Moody's upgraded its credit rating for ENDESA from neutral to positive.
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Publication:Business Wire
Date:Jul 9, 2004
Words:348
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