Interpublic prices $325 million mandatory convertibles at 5.375%, up 22%

New York, Dec. 16 - Interpublic Group of Cos., Inc. priced $325 million of series A mandatory convertible preferred stock to yield 5.375% with a 22% initial conversion premium.

The issue, priced after the close Tuesday came more aggressively than talk which had put the yield at 5.5% to 6.0% with an 18% to 22% initial conversion premium.

Each share of the convertible preferreds will convert to between 3.0358 and 3.7037 shares of common stock.

Citigroup, JPMorgan Securities and UBS Investment Bank were joint bookrunners of the deal.

Interpublic also priced 22.4 million shares of common stock at $13.50 per share.

In total the offerings fetched $627.4 million. In both cases there is a 15% greenshoe.

Interpublic, a New York-based advertising agency, said it will use proceeds to redeem its 1.80% convertible subordinated notes due 2004. Any remaining funds will be used for general corporate purposes and to further strengthen the company's balance sheet and financial condition.

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