Omnicom sets payout in solicitation to amend 0% convertibles due 2033

By Jennifer Chiou

New York, June 13 - Omnicom Group Inc. announced its payout in a consent solicitation to extend the maturity and to make other changes to its zero-coupon zero-yield convertible notes due 2033.

Holders who consent by 5 p.m. ET on June 27 and do not exercise the upcoming put on June 16 will receive a cash payment of $27.50 per $1,000 of convertibles.

The New York-based marketing and corporate communications company is looking to extend the maturity to July 1, 2038 from June 15, 2033, similarly extend the contingent cash interest payment dates through June 15, 2038, add puts in June 15, 2033, 2034, 2035, 2036 and 2037, extend the conversion rights for the notes to July 1, 2038 and amend the comparable yield for accrued original issue discount, currently 4.60%.

The new yield will be determined on the effective date of the consent solicitation and is estimated to be 7%.

The company announced the solicitation on May 30.

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