Omnicom completes $2.95 billion exchange offer for Interpublic Group notes

Omnicom Group Inc. (NYSE:OMC) has completed its previously announced exchange offers and consent solicitations related to outstanding notes issued by The Interpublic Group of Companies, Inc. (NYSE:IPG), according to a press release statement included in a Securities and Exchange Commission filing on Tuesday.

The transaction, which followed the completion of Omnicom’s merger with Interpublic Group on November 26, involved the exchange of up to $2.95 billion aggregate principal amount of certain outstanding IPG notes for new Omnicom notes and cash. As part of the process, Omnicom also solicited consents from eligible holders of the existing IPG notes to amend the governing indentures, eliminating certain covenants, restrictive provisions, and events of default.

Upon completion of the exchange offers, Omnicom issued approximately $2.76 billion in new notes in exchange for the tendered and accepted IPG notes. The accepted IPG notes have been retired and cancelled. After the transaction, approximately $185 million in aggregate principal amount of the original IPG notes remain outstanding as obligations of IPG, now a wholly owned subsidiary of Omnicom.

The remaining outstanding IPG notes include $48.57 million of 4.650% notes due 2028, $58.14 million of 4.750% notes due 2030, $42.64 million of 2.400% notes due 2031, $21.66 million of 5.375% notes due 2033, $5.67 million of 3.375% notes due 2041, and $8.34 million of 5.400% notes due 2048.

Additionally, the Thirteenth Supplemental Indenture, which amends the terms of the existing IPG indentures to reflect the proposed changes, became operative Tuesday upon settlement of the exchange offers and consent solicitations.

All information is based on a statement released in conjunction with the company’s filing with the Securities and Exchange Commission.

In other recent news, Omnicom Group reported third-quarter earnings that exceeded analyst expectations, with adjusted earnings per share reaching $2.24, surpassing the consensus estimate of $2.16. The company’s revenue also slightly exceeded forecasts, coming in at $4.04 billion compared to the anticipated $4.02 billion. In a significant development, the European Commission has approved Omnicom’s $13.25 billion all-stock acquisition of Interpublic Group, clearing the final regulatory hurdle for the merger. The merger is expected to create the world’s leading marketing and sales company.

Additionally, Omnicom has extended the expiration date of its exchange offers for Interpublic Group’s outstanding notes to November 28, 2025, aligning with the expected completion of the merger. Meanwhile, BofA Securities has lowered its price target on Interpublic Group to $87.00 from $90.00, maintaining a Neutral rating as the acquisition by Omnicom is anticipated to close soon. The merger, initially announced in December 2024, combines two of the largest advertising buyers globally. These developments highlight a period of strategic growth and consolidation for Omnicom.

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