Interpublic tenders for up to $370 million of 5.25% convertibles

By Angela McDaniels

Tacoma, Wash., April 29 - Interpublic Group of Cos., Inc. is offering to purchase up to 370,000 shares of its outstanding 5.25% series B cumulative convertible perpetual preferred stock, according to a company news release.

For each $1,000 principal amount, the purchase price will be $438.95 plus the product of 54.893 multiplied by the weighted average price of the company's shares, subject to a minimum purchase price of $768.31 and a maximum purchase price of $1,070.22.

The weighted average price will be the average of the daily volume-weighted average prices of Interpublic's common stock beginning on May 18 and ending on the May 24.

The company expects to announce the purchase price on May 25.

Holders will also receive accrued dividends up to but excluding the payment date.

The tender offer will expire at midnight ET on May 26.

Assuming Interpublic accepts the full 370,000 shares for which it is tendering and that it pays the maximum purchase price, it will spend $400 million on the offer, including accrued dividends.

The completion of the offer is not conditioned on a minimum number of preferreds being tendered.

Morgan Stanley & Co. Inc. (800 624-1808 or 212 761-8663) and Citigroup Global Markets Inc. (800 558-3745, 212 723-6106 or 212 723-7367) are the dealer managers, and Global Bondholder Services Corp. (866 807-2200 or, for banks and brokers, 212 430-3774) is the information agent and the depositary.

Interpublic provides advertising and marketing services.

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