Omnicom amends redemption provisions for zero-coupon convertibles

By Angela McDaniels

Tacoma, Wash., June 7 - Omnicom Group Inc. is amending the provisions of its zero-coupon zero-yield convertible notes due 2033 and zero-coupon zero-yield convertible notes due 2038 to limit when it can exercise its redemption option, according to a company news release.

Before the amendment, Omnicom had the right to redeem the convertibles at any time from June 15 onward.

Now it can redeem the convertibles only on the following dates between 2010 and 2018: June 15, June 17, 2013 and June 15, 2018. Beginning June 15, 2018, Omnicom will be able to redeem the convertibles at any time.

Omnicom must notify holders at least 30 days prior to any redemption.

The company said the effect of the amendment in 2010 through 2018 will be to permit noteholders to know with certainty whether Omnicom intends to redeem the convertibles before deciding whether to exercise their put options.

Omnicom is a marketing and corporate communications company based in New York.

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