Omnicom to redeem zero-coupon convertibles due 2033, 2038 next month

By Susanna Moon

Chicago, May 16 - Omnicom Group Inc. and wholly owned direct finance subsidiary Omnicom Capital Inc. issued a notice of redemption for any and all of their $84,000 principal amount of outstanding zero-coupon convertible notes due 2033 and $406,622,000 principal amount of outstanding zero-coupon convertible notes due 2038.

The issuers will redeem the notes at par on June 17.

In addition, holders of notes trading under Cusip Nos. 681919AR7 and 681919AT3 may receive one day of contingent cash interest, or another $0.033 per $1,000 principal amount of notes, if the notes trade above certain thresholds, according to a press release.

Holders of notes trading under Cusip No. 681919AA9 previously waived their right to the contingent cash interest by consenting to an amendment to the note indenture, which became effective on June 21, the release noted.

The notes are convertible at any time before the close of business on June 13 at a conversion rate of 19.4174 shares per $1,000 of notes, which is equivalent to a conversion price of $51.50.

The company's shares closed at $63.70 (NYSE: OMC) on May 15.

The company will pay the principal amount due upon conversion in cash and any premium due with stock.

The marketing and corporate communications company is based in New York.

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