S&P rates Omnicom notes A-

Standard & Poor's said it assigned Omnicom Group Inc.'s (A-/negative/A-2) proposed drawdown of $500 million senior unsecured notes due 2019 a rating of A-.

Proceeds will be used to repay bank debt, which will alleviate pressure on revolving credit capacity and the company's maturity structure resulting from the put in February of nearly all of its $847 million of senior convertible notes due 2031.

S&P said the rating reflects the company's strong position among the top global advertising agency holding companies, good geographic and business diversity, and flexible cost structure.

These factors are tempered by adverse revenue and earnings trends, leverage that is high for the rating, cash and debt usage for acquisitions and share repurchases, and a financial structure that consists of a large proportion of putable debt obligations, the agency noted.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.