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WPP subsidiary to issue new notes for $281.37 million 5.875% notes
By Jennifer Chiou
New York, Dec. 2 - WPP plc announced that it has accepted tenders for $281,369,000 of WPP Finance (UK)'s $650 million of 5.875% senior unsecured notes due June 15, 2014. It issued $312,387,000 of WPP Group Finance 2010's new 4.75% senior notes due 2021 in exchange for those notes.
The private exchange offer for up to $450 million of the notes ended at midnight ET on Dec. 1.
For each $1,000 principal amount of old notes tendered by the early deadline, it issued $1,110.46 of new notes. The total exchange ratio was 1.110462.
The early participation deadline and withdrawal deadline fell on Nov. 16, and those who tendered by the end of business on that date received the $30.00 early participation payment made in new notes included in the above payout.
As reported, 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. 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.
Those who participated in the offer also received 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 in the previously announced private cash offering that was 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. was 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.
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