New York, March 11 - WPP Group plc priced £400 million of five-year senior unsecured convertible bonds Wednesday at a yield of 3% and an initial conversion premium of 45%.
The deal priced at the aggressive end of talk which put the conversion premium at 40% to 45% and the yield at 3% to 3.5%.
The communications services company will use proceeds to refinance bank debt incurred to acquire Tempus Group plc and for general corporate purposes.
The bonds were offered outside the U.S. under Regulation S by Merrill Lynch International as sole financial adviser and Merrill Lynch International and Schroder Salomon Smith Barney as joint bookrunners.
WPP already has a convertible outstanding, the $270 million of 3% convertibles due 2005 it assumed when it acquired Young & Rubicam.
Issuer: WPP Group plc
| Type: | Senior unsecured convertible bonds
|
| Amount: | £400 million
|
| Greenshoe: | £50 million
|
| Maturity: | 2007
|
| Coupon: | 2%
|
| Price: | Par
|
| Redemption price: | 105.35
|
| Yield to maturity: | 3%
|
| Conversion premium: | 45%
|
| Conversion price: | 1075p
|
| Settlement: | April 11
|
| Ratings: | Moody's: Baa1
|
| Standard & Poor's: A-
|
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