Omnicom extends exchange offers deadline ahead of IPG merger

NEW YORK - Omnicom Group Inc. (NYSE:OMC) has extended the expiration date of its exchange offers for Interpublic Group’s (NYSE:IPG) outstanding notes from October 31 to November 28, 2025, the companies announced Thursday. IPG, currently trading at $25.71 and with a market capitalization of $9.41 billion, has maintained dividend payments for 15 consecutive years, reflecting its consistent financial discipline.

The extension aligns with the expected completion of the merger between the two advertising giants, which is anticipated by the end of November. Under the exchange offers, Omnicom will issue new notes in exchange for IPG’s outstanding notes, conditional upon the merger closing. According to InvestingPro data, IPG currently operates with a moderate debt level of $4.18 billion and offers a substantial 5.12% dividend yield, factors that may have influenced the deal structure.

As of October 29, holders of approximately $2.76 billion, or 93.60%, of IPG’s notes had already tendered their securities. The exchange offers cover six series of IPG notes with maturities ranging from 2028 to 2048.

Omnicom received sufficient consents on August 22 to amend the indentures governing IPG’s notes, eliminating certain covenants and restrictive provisions. These amendments will become operative only upon settlement of the exchange offers, which is expected within two business days after the November 28 deadline.

The companies noted that if the merger completion is not anticipated by the expiration date, Omnicom may further extend the deadline until the transaction has been completed. Investors tracking this merger should note that IPG is currently trading below its InvestingPro Fair Value, with earnings results expected on November 10, just weeks before the new exchange offer deadline.

The exchange offers are limited to qualified institutional buyers under Rule 144A of the Securities Act and non-U.S. persons outside the United States under Regulation S.

Omnicom has engaged BofA Securities, J.P. Morgan Securities, and Wells Fargo Securities as lead dealer managers for the exchange offers, along with several co-dealer managers.

The information is based on a press release statement from the companies.

In other recent news, Omnicom Group reported third-quarter earnings that exceeded analyst expectations. The company achieved an adjusted earnings per share of $2.24, surpassing the consensus estimate of $2.16. Omnicom’s revenue for the quarter was $4.04 billion, slightly ahead of the anticipated $4.02 billion. This represents a 4.0% revenue growth compared to the same period last year, with organic growth accounting for 2.6% and favorable currency translation contributing an additional 1.4%. These results were driven by strong performance in the Media & Advertising sector. Despite the positive financial results, the company’s stock showed no significant movement. These developments highlight Omnicom’s ability to exceed market expectations in the current economic climate.

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