By Andrea Heisinger
New York, June 3 - WPP Finance (UK) priced an upsized $600 million 8% five-year senior notes Wednesday to yield 8.25%, an informed source said.
The size was originally $500 million, and the issue was priced at the yield, the source said.
The notes (Baa2/BBB/) priced at 98.969 with a spread of Treasuries plus 579.3 bps. The notes feature a make-whole call of 50 bps over Treasuries.
There is a change-of-control put of 101%.
Bookrunners were Banc of America Securities LLC, Citigroup Global Markets Inc. and HSBC Securities (USA) Inc.
Co-managers were Barclays Capital, BNP Paribas Securities Corp., RBS Securities Inc. and Santander Investment Securities Inc.
Proceeds will be used to repay $311 million outstanding under a term facility used to fund the acquisition of TNS Global. The balance will go to pay down overdrafts.
The notes are guaranteed by WPP plc, WPP Air 1 Ltd., WPP 2008 Ltd. and WPP 2005 Ltd.
WPP Finance (UK) is a subsidiary of WPP plc, a communications services company is based in Dublin, Ireland.
| Issuer: | WPP Finance (UK)
|
| Guarantors: | WPP plc, WPP Air 1 Ltd., WPP 2008 Ltd. and WPP 2005 Ltd.
|
| Issue: | Senior notes
|
| Amount: | $600 million, increased from $500 million
|
| Maturity: | Sept. 15, 2014
|
| Bookrunners: | Banc of America Securities LLC, Citigroup Global Markets Inc., HSBC Securities (USA) Inc.
|
| Co-managers: | Barclays Capital, BNP Paribas Securities Corp., RBS Securities Inc., Santander Investment Securities Inc.
|
| Coupon: | 8%
|
| Price: | 98.969
|
| Yield: | 8.25%
|
| Spread: | Treasuries plus 579.3 bps
|
| Call: | Make-whole at Treasuries plus 50 bps
|
| Change-of-control put: | 101%
|
| Trade date: | June 3
|
| Settlement date: | June 10
|
| Ratings: | Moody's: Baa2
|
| Standard & Poor's: BBB
|
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