Interpublic completes tender for 5.4% notes, 7¼% notes, floaters

By Jennifer Chiou

New York, July 8 - Interpublic Group of Cos., Inc. said it received tenders for 85.6% of its $250 million of 5.4% notes due 2009 and for 92.8% of its $500 million of 7¼% notes due 2011 in its offers that expired at midnight ET on July 6.

Interpublic said it also accepted for purchase $36.3 million of its $250 million of floating-rate notes due 2010.

The company had offered to purchase any and all of the 5.4% notes and up to $500 million total of the 7¼% notes and floating-rate notes.

Tenders for notes prior to the 5 p.m. ET on June 19 early tender deadline were settled on June 22. Those included tenders for $213.9 million of the 5.4% notes and $463.7 million of the 7¼% notes.

Between the early tender date and the expiration date, Interpublic received tenders for $25,000 of the 5.4% notes and $45,000 of the 7¼% notes.

For each $1,000 principal amount, the purchase price was $1,010 for the 5.4% notes, $1,040 for the 7¼% notes and par for the floating-rate notes. Noteholders also received accrued interest up to but excluding the settlement date.

In each case, the payment included an early tender premium of $30 per $1,000 principal amount of notes paid only to holders who tendered by the early deadline.

The cash payment due upon final settlement of the accepted notes, including accrued interest, was $36.5 million.

The offers were subject to conditions that include the successful completion of a financing transaction for at least $500 million. They were not contingent on the tender of a minimum principal amount of notes.

Interpublic said it planned to fund the payment of the purchase price with the proceeds of the new financing transaction plus available cash.

Morgan Stanley & Co. Inc. (800 624-1808 or 212 761-5384) and Citigroup Global Markets Inc. (800 558-3745 or 212 723-6106) were the dealer managers. Global Bondholder Services Corp. (866 540-1500 or 212 430-3774) was the information agent.

Interpublic is a New York-based advertising agency and marketing services company.

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