S&P rates Interpublic Group convertibles B

Standard & Poor's said it assigned a B rating to the proposed $400 million 4.25% convertible senior notes due 2023 of Interpublic Group of Cos. Inc. (B/Watch negative/B-3), which are being issued on a private basis in exchange for the same principal amount of its old, 4.5% convertible senior notes due 2023.

At the same time, the rating on these notes was placed on CreditWatch with negative implications, the agency said, adding that the new notes differ from the old notes principally in the lower interest rate, an extension of the date upon which they will be callable and an extension of the dates upon which they will be subject to repurchase at the investor's option.

The ratings on the outstanding debt of Interpublic remain on CreditWatch with negative implications, where they were placed on March 22, 2006, as a result of declines in Interpublic's core business and S&P's reduced confidence in the company's prospects for cash flow generation.

"We expect to evaluate Interpublic's operating outlook and business strategies within the next several weeks in order to complete our CreditWatch review," said S&P credit analyst Deborah Kinzer.

"Rating downside is currently limited to one notch."

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.