Interpublic exchanges all floaters due 2008 for new floaters due 2010

By Laura Lutz

Washington, Dec. 8 -Interpublic Group of Co., Inc. has received tenders for the all $250 million outstanding principal amount of its floating-rate notes due July 2008 in response to its offer to exchange the notes for new floating-rate notes due November 2010.

The early tender deadline in the offer was 5 p.m. on Dec. 7. As of the company's release on Dec. 8, settlement of the exchange was expected later in the day.

The new notes will differ from the old notes in that the new notes will have a later maturity, bear interest at three-month Libor plus 200 basis points - instead of three-month Libor plus 325 basis points - and will benefit from the terms of a registration rights agreement between Interpublic and the dealer manager.

For each $1,000 principal amount of old notes, investors will receive an equal amount of new notes, plus an early participation payment of $41.25 in cash for those who exchange by 5 p.m. ET on Dec. 7.

Noteholders will also receive accrued interest to the initial settlement date.

Interest on the new notes will be payable quarterly beginning Feb. 15.

The offer, which was announced on Nov. 22, was originally set to expire on Dec. 21. As of Dec. 22, about 45% of noteholders have agreed to tender their notes in the offer.

Interpublic is a New York-based advertising and marketing group.

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