Omnicom changes call provisions for LYONs, zero-coupon zero-yield convertibles

By Angela McDaniels

Tacoma, Wash., July 14 - Omnicom Group Inc. said it amended the provisions of its Liquid Yield Option Notes due 2031 and its zero-coupon zero-yield convertible notes due 2032 to limit when the company can exercise its call option.

Under the amendment, Omnicom can redeem the LYONs on Feb. 9, 2009, Feb. 1, 2010, Feb. 1, 2011, Feb. 1, 2012 and Feb. 1, 2013.

Previously, Omnicom had the right to redeem the LYONs from Feb. 7, 2009 onward.

On or after Feb. 7, 2014, Omnicom will revert back to its right to redeem the LYONs at any time, according to a company news release.

As for the zero-coupon zero-yield convertibles, the company can redeem them on July 31, 2009, Aug. 2, 2010, Aug. 1, 2011, July 31, 2012 and July 31, 2013.

Previously, Omnicom could redeem the convertibles from July 31, 2009 onward.

The company said that on or after July 31, 2014, it will once again be able to redeem the convertibles at any time.

Holders will receive at least 30 days' notice ahead of any call.

The company said the effect of the amendments during the five-year period from 2009 to 2014 will be to allow noteholders to know with certainty whether Omnicom plans to redeem the notes before deciding whether to exercise their put rights.

Omnicom is an advertising, marketing and corporate communications company based in New York.

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