Omnicom Group Inc. and The Interpublic Group of Companies, Inc. have announced exchange offers and consent solicitations in connection with Omnicom's pending transaction to acquire IPG. The exchange offers are for any and all outstanding 4.650% notes due 2028, 4.750% notes due 2030, 2.400% notes due 2031, 5.375% notes due 2033, 3.375% notes due 2041, and 5.400% notes due 2048.
The following table outlines the exchange consideration, consent payment, early tender payment, and total exchange consideration for existing IPG notes for which the new Omnicom notes are being offered:
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For the 4.650% notes due 2028, the aggregate principal amount outstanding is $500,000,000, with a consent payment of $1.00 and an exchange consideration of $970 plus an early tender payment of $30, resulting in a total exchange consideration of $1,000.
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For the 4.750% notes due 2030, the aggregate principal amount outstanding is $650,000,000, with a consent payment of $1.00 and an exchange consideration of $970 plus an early tender payment of $30, resulting in a total exchange consideration of $1,000.
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For the 2.400% notes due 2031, the aggregate principal amount outstanding is $500,000,000, with a consent payment of $1.00 and an exchange consideration of $970 plus an early tender payment of $30, resulting in a total exchange consideration of $1,000.
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For the 5.375% notes due 2033, the aggregate principal amount outstanding is $300,000,000, with a consent payment of $1.00 and an exchange consideration of $970 plus an early tender payment of $30, resulting in a total exchange consideration of $1,000.
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For the 3.375% notes due 2041, the aggregate principal amount outstanding is $500,000,000, with a consent payment of $1.00 and an exchange consideration of $970 plus an early tender payment of $30, resulting in a total exchange consideration of $1,000.
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For the 5.400% notes due 2048, the aggregate principal amount outstanding is $500,000,000, with a consent payment of $1.00 and an exchange consideration of $970 plus an early tender payment of $30, resulting in a total exchange consideration of $1,000.
The settlement date is expected to be within two business days after the expiration date, with the new Omnicom notes accruing interest from the most recent date on which interest has been paid on the corresponding series of existing IPG notes accepted in the exchange offers.
It is important to note that the terms of the new Omnicom notes will be materially different than the covenants, related exceptions, and events of default to which the existing IPG notes are subject.
This announcement marks a significant development in the ongoing merger process between Omnicom and IPG, with detailed terms and considerations outlined for eligible holders participating in the exchange offers and consent solicitations. Today the company's shares have moved 0.12% to a price of $24.94. If you want to know more, read the company's complete 8-K report here.
