By Aleesia Forni
New York, March 28 – Omnicom Group Inc. and Omnicom Capital Inc. sold $1.4 billion of 3.6% 10-year senior notes (Baa1/BBB) at Treasuries plus 175 basis points on Monday, according to a market source.
Pricing was at 99.907 to yield 3.611%.
The notes sold at the tight side of guidance set in the 180 bps area over Treasuries. Initially, talk was in the 200 bps area over Treasuries.
Citigroup Global Markets Inc., Deutsche Bank Securities Inc., J.P. Morgan Securities LLC and Wells Fargo Securities LLC were the active bookrunners, and BNP Paribas Securities Corp. HSBC Securities (USA) Inc. and U.S. Bancorp Investments Inc. were the passive bookrunners.
The portion of notes issued by Omnicom Capital is guaranteed by Omnicom Group.
Proceeds will be used to retire $1 billion of 5.9% notes due April 15, 2016 and for general corporate purposes, which may include working capital, fixed asset expenditures, acquisitions, debt refinancing, repurchases of common stock or other capital transactions.
The global marketing and corporate communications company is based in New York City.
| Issuers: | Omnicom Group Inc. and Omnicom Capital Inc.
|
| Amount: | $1.4 billion
|
| Description: | Senior notes
|
| Maturity: | April 15, 2026
|
| Bookrunners: | Citigroup Global Markets Inc., Deutsche Bank Securities Inc., J.P. Morgan Securities LLC, Wells Fargo Securities LLC, BNP Paribas Securities Corp. HSBC Securities (USA) Inc., U.S. Bancorp Investments Inc.
|
| Coupon: | 3.6%
|
| Price: | 99.907
|
| Yield: | 3.611%
|
| Spread: | Treasuries plus 175 bps
|
| Trade date: | March 28
|
| Ratings: | Moody’s: Baa1
|
| Standard & Poor’s: BBB
|
| Distribution: | SEC registered
|
| Price guidance: | Treasuries plus 180 bps area, tightened from Treasuries plus 200 bps area
|
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