Vivendi Universal, the French media and entertainment group, will ease the cost of its debt by completing the repurchase of up to €1bn ($1.2bn) worth of expensive junk bonds that were issued in 2003 when the company lost its investment grade credit rating.

Vivendi launched a buyback offer for the bonds, which were issued in April and June last year through two dual tranche deals including bonds in euros and dollars, on Tuesday. The offer, which is being managed by Bank of America and JP Morgan, will last until June 24, with an early tender deadline of June 8.