Interpublic gets tenders for $676.89 million of 5.4%, 7¼% notes so far

By Angela McDaniels

Tacoma, Wash., June 22 - Interpublic Group of Cos., Inc. said it received tenders for $213.19 million of its $250 million 5.4% notes due 2009 and for $463.7 million of its $500 million 7¼% notes due 2011 before the early tender date, which was 5 p.m. ET on June 19.

Tender offers for the notes began June 8 and will expire at midnight ET on July 6. Also included in the offers are the company's $250 million floating-rate notes due 2010.

The notes tendered through June 19 have been accepted for purchase, and the payment for these notes was expected to be made June 22.

The company is offering to purchase any and all of the 5.4% notes and up to $500 million in total of the 7¼% notes and floating-rate notes.

If the total principal amount of 7¼% notes and floating-rate notes tendered exceeds $500 million, Interpublic will accept all tendered 7¼% notes and will accept floating-rate notes on a pro rata basis.

For each $1,000 principal amount, the purchase price is $1,010 for the 5.4% notes, $1,040 for the 7¼% notes and par for the floating-rate notes. Noteholders will also receive accrued interest up to but excluding the settlement date.

In each case, the payment includes an early tender premium of $30 per $1,000 principal amount of notes paid only to holders who tendered by the early deadline.

The offers are subject to conditions that include the successful completion of a financing transaction for at least $500 million. They are not contingent on the tender of a minimum principal amount of notes.

Interpublic said it plans to fund the payment of the purchase price with the proceeds of the new financing transaction plus available cash.

Morgan Stanley & Co. Inc. (800 624-1808 or 212 761-5384) and Citigroup Global Markets Inc. (800 558-3745 or 212 723-6106) are the dealer managers.

Global Bondholder Services Corp. (866 540-1500 or 212 430-3774) is the information agent.

Interpublic is a New York-based advertising agency and marketing services company.

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