Moody's rates Interpublic Group notes Baa3

Moody's Investors Service said it assigned a Baa3 rating to The Interpublic Group of Cos. Inc.'s proposed $600 million in senior unsecured notes, to be issued in two tranches due 2009 and 2014. The outlook is stable.

The company intends to use proceeds from the offering to tender for up to $250 million of its 7 7/8% senior notes due 2005 and redeem in whole the company's 1.87% convertible subordinated notes due 2006.

The Baa3 rating is supported by Moody's belief that Interpublic Group's management team, as part of the company's 36-month turnaround plan, has significantly strengthened the company's balance sheet and has shown sequential progress improving operating performance.

Moody's said it believes the proposed note offering will also help strengthen the company's liquidity profile by addressing the majority of the company upcoming debt maturities in 2005 and 2006.

© 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.