WPP subsidiary sets pricing, exchange ratio in offer for 5.875% notes

By E. Janene Geiss

Philadelphia, Nov. 14 - WPP plc announced the total exchange ratio of WPP Group Finance 2010's new 4.75% senior notes due 2021, which will be issued in the private exchange offer for a portion of WPP Finance (UK)'s existing $650 million of 5.875% senior unsecured notes due June 15, 2014.

The total exchange ratio will be 1.110462.

The company also set the total consideration for the offer. For each $1,000 principal amount of old notes tendered by the early deadline, it will issue $1,110.46 of new notes.

The early participation deadline and withdrawal deadline fall on Nov. 16, and those who tender by the end of business on that date will receive the $30.00 early participation payment made in new notes included in the payout.

As already stated, the WPP subsidiary is conducting the exchange offer for up to $450 million more of the new notes in an offer that will end at midnight ET on Dec. 1.

The existing note yield came in at 1.673% for an existing note price of $1,103.91, and the new note yield is 4.825% for a new note price of $994.10, according to a company press release. The rates were calculated using a fixed spread of 130 basis points over the 0.5% Treasury due Oct. 15, 2014 for the existing notes and 280 bps over the 2.125% Treasury due Aug. 15, 2021 for the new notes.

As reported, those who participate in the offer will also receive accrued interest.

Any new notes issued in the exchange offer will comprise part of the same series as the $500 million of new notes already issued the previously announced private cash offering.

The offering of notes is set to close on Nov. 21. The new notes are guaranteed by WPP and its subsidiaries WPP Air 1 Ltd., WPP 2008 Ltd. and WPP 2005 Ltd.

MacKenzie Partners, Inc. is the information agent (800 322-2885 or 212 929-5500).

WPP Group Finance 2010 is the financing arm of WPP plc, which is a Dublin-based advertising firm.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.