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Interpublic will pay interest on 4.75% notes converted after March 1
By Susanna Moon
Chicago, Feb. 14 - Interpublic Group of Cos., Inc. said it has now decided to pay accrued interest to holders who convert its $200 million outstanding 4.75% convertible notes due 2023 during a specified period.
The company will pay accrued interest on the next interest payment date of March 15 to those who convert their notes from the interest record date, March 1, to the interest payment date, according to a press release.
Holders who convert their notes before the interest record date will not receive accrued interest.
The company continues to believe the note "provisions support its reading of the indenture concerning the payment of accrued interest" but chose to pay interest during the specified period "in the interest of maintaining continued good relations with its noteholders," the release said.
Redemption details
The company said on Feb. 13 that it planned to redeem the convertibles on March 15 at par of $1,000 plus accrued interest of $23.75 per note.
Interpublic said that holders may convert their notes at any time at a conversion rate of 84.3402 shares per $1,000 of notes until the close of business on March 14.
The company also notified holders that they may exercise a put option. Put bonds will be redeemed at the same price as called bonds.
Holders may exercise their put option until 5 p.m. ET on March 8 and withdraw put notices at any time prior to 5 p.m. ET on March 14.
The company noted that a holder exercising the put option will lose conversion rights, unless the put option exercise is withdrawn, and will not receive more consideration than what holders would receive from having their notes redeemed.
Interpublic is a global advertising and marketing company based in New York.
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