The Illinois Power Co. earlier this month, successfully completed the market's second bond repurchase and refinancing deal to use a modified dutch auction tender technique, according to the manager of the deal, Bear, Stearns & Co.

Under the dutch auction technique, holders of the utility's outstanding bonds -- which cannot be advance refunded because of tax law restrictions -- were asked to submit bids reflecting a price at which they would be willing to sell the security back to the company.

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