Interpublic to issue new floaters in exchange for $250 million floaters due 2008

By Jennifer Chiou

New York, Nov.22 - Interpublic Group of Cos. Inc. announced the start of an exchange offer in which it will issue up to $250 million of new floating-rate notes due November 2010 in exchange for up to $250 million of its old floating-rate notes due July 2008.

The new notes will differ from the old notes in that the new notes will have a later maturity, bear interest at three-month Libor plus 200 basis points - instead of three-month Libor plus 325 basis points - and will benefit from the terms of a registration rights agreement between Interpublic and the dealer manager.

The New York-based advertising and marketing group said the offer ends at midnight ET on Dec. 21.

For each $1,000 principal amount of old notes, investors will receive an equal amount of new notes, plus an early participation payment of $41.25 in cash for those who exchange by 5 p.m. ET on Dec. 7.

Noteholders will also receive accrued interest to the initial settlement date.

Interest on the new notes will be payable quarterly beginning Feb. 15.

Interpublic added that about 45% of noteholders have agreed to tender their notes in the exchange offer.

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