Published on 6/10/2009 in the Prospect News High Yield Daily.
New Issue: Interpublic Group sells upsized $600 million 10% eight-year notes to yield 10 3/8%
By Paul A. Harris
St. Louis, June 10 - The Interpublic Group of Companies, Inc. priced an upsized $600 million issue of 10% eight-year senior unsecured notes (Ba3/B+/BB+) at 97.958 to yield 10 3/8% on Wednesday, according to an informed source.
The yield was printed at the tight end of the 10 3/8% to 10 5/8% yield talk, while the issue price came within the context of the approximately 2 points of original issue discount price talk.
Morgan Stanley & Co. Inc., Citigroup Global Markets Inc., J.P. Morgan Securities Inc. and UBS Investment Bank were joint bookrunners for the deal, which was upsized from $500 million.
HSBC Securities (USA) Inc., ING Wholesale and Lloyds TSB Corporate Markets were co-managers.
Proceeds will be used to fund the tender for the New York-based advertising and marketing services company's notes maturing in 2010 and 2011, as well as to repay other debt, for general corporate purposes and for working capital.
| Issuer: | The Interpublic Group of Companies, Inc.
|
| Face amount: | $600 million, increased from $500 million
|
| Proceeds: | $587.748 million
|
| Maturity: | July 15, 2017
|
| Security description: | Senior unsecured notes
|
| Bookrunners: | Morgan Stanley & Co. Inc., Citigroup Global Markets Inc., J.P. Morgan Securities Inc., UBS Investment Bank
|
| Co-managers: | HSBC Securities (USA) Inc., ING Wholesale, Lloyds TSB Corporate Markets
|
| Coupon: | 10%
|
| Price: | 97.958
|
| Yield: | 10 3/8%
|
| Spread: | 663 bps
|
| Call features: | Make-whole call at Treasuries plus 50 bps until July 15, 2013, then callable at 105.0, 102.5, par on and after July 15, 2015
|
| Trade date: | June 10
|
| Settlement date: | June 15
|
| Ratings: | Moody's: Ba3
|
| Standard & Poor's: B+
|
| Fitch: BB+
|
| Distribution: | Rule 144A with registration rights/Regulation S
|
| Price talk: | 10 3/8% to 10 5/8% all-in yield with approximately 2 points of OID
|
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