Publicis to redeem remaining 1% convertible bonds on Jan. 25

By Marisa Wong

Madison, Wis., Dec. 20 - Publicis Groupe SA said it has decided to proceed with the early redemption of all of its outstanding 1% bonds due Jan. 18, 2018 that are convertible into new shares or exchangeable into existing shares.

According to a news release, holders put a total of 2,387,223 bonds in November and December, leaving 237,315 bonds outstanding as of Dec. 19. The remaining amount is less than 10% of the number of bonds originally issued.

The outstanding bonds will be redeemed on Jan. 25 at a price of €48.76 euros, corresponding to the early redemption price plus accrued interest. This sum ensures that bondholders receive, taking into account interest payments, an effective actuarial rate of return of 2.75% per year, calculated from the issue date of Jan. 18, 2002, the release said.

Bondholders still have until Jan. 14 to exercise their conversion/exchange rights at a rate of 1.015 Publicis shares per bond. Holders who exercise their conversion/exchange right will receive existing Publicis shares on Jan. 25.

Publicis is a communications group based in Paris.

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