Published on 2/19/2020 in the Prospect News Investment Grade Daily.
New Issue: Omnicom sells $600 million 2.45% 10-year notes to yield Treasuries plus 92 bps
By Cristal Cody
Tupelo, Miss., Feb. 19 – Omnicom Group Inc. priced an upsized $600 million of 2.45% 10-year senior notes (Baa1/BBB+) on Wednesday at 99.656 to yield 2.488% and a spread of Treasuries plus 92 basis points, according to a market source and an FWP filing with the Securities and Exchange Commission.
Initial price guidance on the notes was in the Treasuries plus 110 bps to 115 bps area.
The deal was upsized from $500 million.
Citigroup Global Markets Inc., J.P. Morgan Securities LLC, Wells Fargo Securities LLC, BofA Securities, Inc. and HSBC Securities (USA) Inc. were the bookrunners.
Proceeds will be used to redeem the company’s $600 million of 4.45% senior notes due Aug. 15, 2020. The global marketing and corporate communications company is based in New York.
| Issuer: | Omnicom Group Inc.
|
| Amount: | $600 million
|
| Description: | Senior notes
|
| Maturity: | April 30, 2030
|
| Bookrunners: | Citigroup Global Markets Inc., J.P. Morgan Securities LLC, Wells Fargo Securities LLC, BofA Securities, Inc. and HSBC Securities (USA) Inc.
|
| Co-managers: | Barclays, BNP Paribas Securities Corp., Deutsche Bank Securities Inc., Mizuho Securities USA LLC, MUFG, SMBC Nikko Securities America, Inc., TD Securities (USA) LLC, U.S. Bancorp Investments, Inc., RBC Capital Markets, LLC, Scotia Capital (USA) Inc. and Siebert Williams Shank & Co., LLC
|
| Coupon: | 2.45%
|
| Price: | 99.656
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| Yield: | 2.488%
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| Spread: | Treasuries plus 92 bps
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| Call features: | Make-whole call before Jan. 30, 2030 at Treasuries plus 15 bps; thereafter at par
|
| Trade date: | Feb. 19
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| Settlement date: | Feb. 21
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| Ratings: | Moody’s: Baa1
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| S&P: BBB+
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| Distribution: | SEC registered
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| Price guidance: | Treasuries plus 95 bps area, plus or minus 3 bps; initial talk at Treasuries plus 110 bps-115 bps area
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