Gan020 wrote:Thanks for this and no I was not aware of the put option and I'm pleased to learn something new as it slightly alters my views on buying bonds above par
It was interesting to me too, I hadn't noticed it in the terms of the EI bonds I held. The option is in the terms under the title "Change of Control" I think. Annual reports also refer to this feature.
My impression is that the enlarged, leveraged acquiring business is viewed as more risky than the original issuer, which would explain why the put option was taken, as well as the higher yield on the newly issued bonds.