New Issue: Omnicom $550 million breakfast deal yields 0%, up 43.5%

By Ronda Fears

Nashville, June 3 - Omnicom Group Inc. sold $550 million of 30-year convertible senior notes at par to yield 0% with a 43.5% initial conversion premium in the Rule 144A market via lead manager JPMorgan.

The issue, priced as a breakfast deal before the market opened, sold at the cheaper end of guidance, which put the premium between 42% and 47%.

Omnicom said proceeds would be used to retire debt and general corporate purposes.

Terms of the deal are:

Issuer: Omnicom Group Inc.

Issue:	Convertible senior notes
Lead manager:	JPMorgan
Amount	$550 million
Greenshoe:	$50 million
Maturity:	June 15, 2033
Coupon:	0%
Price:	Par
Yield:	0%
Conversion premium:	43.5%
Conversion price:	$103
Conversion ratio:	9.7087
Call:	Non-callable for 7 years
Put:	In years 3, 5, 7, 10, 15, 20 and every year thereafter
Contingent conversion:	125% initially, rising to 220% by year 5
Contingent payment:	120%, plus a dividend passthrough
Expected ratings:	Moody's: Baa1
	S&P: A-
Settlement:	June 11

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