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|Interpublic Announces Pricing of 2.25% Senior Notes Due 2017 and 3.75% Senior Notes Due 2023|
New York, NY - November 5, 2012 - Interpublic Group (NYSE: IPG) today announced that it has launched and priced an offering of $300 million principal amount of its 2.25% Senior Notes due 2017 and $500 million principal amount of its 3.75% Senior Notes due 2023. The expected net proceeds will be approximately $791.2 million after deducting discounts, commissions and estimated offering expenses.
Interpublic intends to use the net proceeds from the offering towards the redemption of its $200 million aggregate principal amount of 4.75% Convertible Senior Notes due 2023 and its $600 million aggregate principal amount of 10.00% Senior Notes due 2017. Interpublic has the right to redeem the 4.75% Notes at par plus accrued interest on or after March 15, 2013, and it has the right to redeem the 10.00% Notes at 105% of their principal amount plus accrued interest on or after July 15, 2013. If holders convert the 4.75% Notes to shares, Interpublic may apply part of the proceeds of this offering toward share repurchases under its share repurchase program. Any proceeds that are not applied as described above will be used for general corporate purposes.
This statement shall not constitute a notice of redemption under the indentures governing the 4.75% Notes and 10.00% Notes. Any such notice, if made, will only be made in accordance with the provisions of the applicable indenture.
"We are pleased with the strong reception from the credit market," commented Michael I. Roth, Chairman and CEO of Interpublic Group. "The combination of these new notes and our planned retirement of both the 4.75% convertible notes and the 10% senior notes will help to further improve our debt maturity profile and continue to reduce interest expense for our company. We will also eliminate share dilution due to the convertible feature of the 4.75% notes. All of these actions are consistent with our continued objective of enhancing shareholder value."
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This release contains forward-looking statements. Statements in this release that are not historical facts, including statements about management's beliefs and expectations, constitute forward-looking statements. These statements are based on current plans, estimates and projections, and are subject to change based on a number of factors, including those outlined under Item 1A, Risk Factors, in our most recent Annual Report on Form 10-K. Forward-looking statements speak only as of the date they are made, and we undertake no obligation to update publicly any of them in light of new information or future events.
Forward-looking statements involve inherent risks and uncertainties. A number of important factors could cause actual results to differ materially from those contained in any forward-looking statement. Such factors include, but are not limited to, the following:
Investors should carefully consider these factors and the additional risk factors outlined in more detail under Item 1A, Risk Factors, in our most recent Annual Report on Form 10-K and other SEC filings.