Omnicom enters $600 million delayed-draw term loan agreement

By William Gullotti

Buffalo, N.Y., Jan. 5 – Omnicom Group Inc. and its wholly owned subsidiary Omnicom Capital Inc. signed a $600 million delayed-draw term loan agreement with Citibank, NA as administrative agent on Jan. 3, according to an 8-K filing with the Securities and Exchange Commission.

Borrowings bear interest at SOFR plus a margin ranging from 75 basis points to 150 bps. There is a ticking fee on the unused commitments that ranges from 6 bps to 17.5 bps.

The margin and ticking fee are determined by the company’s long-term debt rating.

Subject to certain customary conditions, the borrowers may draw on the funds in up to three draws prior to July 15, 2024. Each drawdown must be in a minimum amount of $5 million and integral multiples of $1 million.

Borrowings may be prepaid at the borrower’s option without premium or penalty but may not be reborrowed once repaid.

The agreement, which matures Dec. 31, 2026, was undrawn at closing.

In addition to acting as administrative agent, Citibank is also a joint lead arranger and joint bookrunner with BofA Securities, Inc., Barclays Bank plc, BNP Paribas Securities Corp., Deutsche Bank Securities Inc., HSBC Securities (USA), Inc., JPMorgan Chase Bank, NA, Mizuho Bank, Ltd., Societe Generale, Sumitomo Mitsui Banking Corp., TD Securities (USA), LLC, U.S. Bank NA and Wells Fargo Securities, LLC.

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