Published on 8/2/2010 in the Prospect News Investment Grade Daily.
New Issue: Omnicom, units sell upsized $1 billion 4.45% 10-year notes at Treasuries plus 155 bps
By Andrea Heisinger
New York, Aug. 2 - Omnicom Group Inc., along with subsidiaries Omnicom Capital Inc. and Omnicom Finance Inc., sold an upsized $1 billion of 4.45% 10-year senior unsecured notes on Monday to yield Treasuries plus 155 basis points, an informed source said.
The deal was announced at $750 million and talk was in the 160 bps area with a margin of plus or minus 5 bps.
The notes (Baa1/BBB+/A-) priced at 99.654 to yield 4.493%. The notes have a make-whole call at Treasuries plus 25 bps.
J.P. Morgan Securities Inc. was the active bookrunner, with Bank of America Merrill Lynch, Citigroup Global Markets Inc., Deutsche Bank Securities Inc. and HSBC Securities as the passive bookrunners.
Co-managers were Barclays Capital Inc., Wells Fargo Securities, LLC, BNP Paribas Securities Corp., Morgan Stanley & Co. Inc., SG Americas Securities, LLC, UBS Investment Bank, ANZ Securities, Inc., Banca IMI SpA, BBVA Securities Inc. and RBS Securities Inc.
Proceeds are going to general corporate purposes.
The obligations of the two subsidiaries are guaranteed by Omnicom Group.
The marketing and corporate communications company is based in Greenwich, Conn., and New York City.
| Issuers: | Omnicom Group Inc., Omnicom Capital Inc., Omnicom Finance Inc.
|
| Guarantor: | Omnicom Group Inc.
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| Issue: | Senior unsecured notes
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| Amount: | $1 billion, increased from $750 million
|
| Maturity: | Aug. 15, 2020
|
| Bookrunners: | J.P. Morgan Securities Inc. (active), Bank of America Merrill Lynch, Citigroup Global Markets Inc., Deutsche Bank Securities Inc., HSBC Securities (passive)
|
| Co-managers: | Barclays Capital Inc., Wells Fargo Securities, LLC, BNP Paribas Securities Corp., Morgan Stanley & Co. Inc., SG Americas Securities, LLC, UBS Investment Bank, ANZ Securities, Inc., Banca IMI SpA, BBVA Securities Inc., RBS Securities Inc.
|
| Coupon: | 4.45%
|
| Price: | 99.654
|
| Yield: | 4.493%
|
| Spread: | Treasuries plus 155 bps
|
| Call: | Make-whole at Treasuries plus 25 bps
|
| Trade date: | Aug. 2
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| Settlement date: | Aug. 5
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| Ratings: | Moody's: Baa1
|
| Standard & Poor's: BBB+
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| Fitch: A-
|
| Price talk: | 160 bps area
|
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