Published on 9/18/2018 in the Prospect News Investment Grade Daily.
New Issue: Interpublic sells $2 billion of fixed-rate notes in four tranches
By Devika Patel
Knoxville, Tenn., Sept. 18 – Interpublic Group of Cos., Inc. priced $2 billion of senior notes (Baa2/BBB/BBB+) in four tranches on Tuesday, according to an FWP filed with the Securities and Exchange Commission.
There was $500 million of 3.5% two-year notes priced with an 80 basis points spread over Treasuries. Pricing was at 99.807.
The company sold $500 million of 3.75% three-year notes with a 90 bps spread over Treasuries. Pricing was at 99.931.
Interpublic priced $500 million of 4.65% 10-year bonds with a 165 bps spread over Treasuries. Pricing was at 99.666.
The company also sold $500 million of 5.4% 30-year bonds with a 225 bps spread over Treasuries. Pricing was at 99.439.
Citigroup Global Markets Inc., J.P. Morgan Securities LLC, BofA Merrill Lynch and Morgan Stanley & Co. LLC were the bookrunners.
Proceeds will be used, along with proceeds from a term loan, to acquire Acxiom Corp.’s Marketing Solutions business for $2.3 billion in cash.
Interpublic is a New York-based provider of advertising and marketing services.
| Issuer: | Interpublic Group of Cos., Inc.
|
| Issue: | Senior notes
|
| Amount: | $2 billion
|
| Bookrunners: | Citigroup Global Markets Inc., J.P. Morgan Securities LLC, BofA Merrill Lynch and Morgan Stanley & Co. LLC
|
| Senior co-managers: | BBVA Securities Inc., BNP Paribas Securities Corp., HSBC Securities (USA) Inc., ING Financial Markets LLC, Lloyds Securities Inc., MUFG and Wells Fargo Securities LLC
|
| Co-managers: | Citizens Capital Markets, Inc., PNC Capital Markets LLC, U.S. Bancorp Investments Inc., Danske Markets Inc., Goldman Sachs & Co., Loop Capital Markets LLC and Telsey Advisory Group LLC
|
| Trade date: | Sept. 18
|
| Settlement date: | Sept. 21
|
| Ratings: | Moody’s: Baa2
|
| S&P: BBB
|
| Fitch: BBB+
|
| Distribution: | SEC registered
|
|
|
| Two-year notes
|
| Amount: | $500 million
|
| Maturity: | Oct. 1, 2020
|
| Coupon: | 3.5%
|
| Price: | 99.807
|
| Spread: | Treasuries plus 80 bps
|
| Call: | Make-whole call at Treasuries plus 15 bps
|
|
|
| Three-year notes
|
| Amount: | $500 million
|
| Maturity: | Oct. 1, 2021
|
| Coupon: | 3.75%
|
| Price: | 99.931
|
| Spread: | Treasuries plus 90 bps
|
| Call: | Make-whole call at Treasuries plus 15 bps
|
|
|
| 10-year notes
|
| Amount: | $500 million
|
| Maturity: | Oct. 1, 2028
|
| Coupon: | 4.65%
|
| Price: | 99.666
|
| Spread: | Treasuries plus 165 bps
|
| Call: | Make-whole call at Treasuries plus 25 bps until July 1, 2028 and then a par call
|
|
|
| 30-year notes
|
| Amount: | $500 million
|
| Maturity: | Oct. 1, 2048
|
| Coupon: | 5.4%
|
| Price: | 99.439
|
| Spread: | Treasuries plus 225 bps
|
| Call: | Make-whole call at Treasuries plus 35 bps until April 1, 2048 and then a par call
|
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