WPP prices tender offer for £200 million 6.375% bonds due 2020

By Sarah Lizee

Olympia, Wash., March 25 – WPP Finance SA announced pricing of the tender offer for its £200 million of 6.375% guaranteed bonds due Nov. 6, 2020 that expired 11 a.m. ET on March 21.

The notes are guaranteed by WPP plc, WPP 2005 Ltd. and WPP Jubilee Ltd.

The early purchase price will be 108.629, based on an early purchase yield of 0.956%, the late purchase price will be 107.629, and the mandatory redemption price will be 107.629, according to a press release.

WPP will also pay an accrued interest payment of £24.63 per £1,000 note.

Pricing was set at 7 a.m. ET on March 25 using a tender spread of 30 basis points over the 3.75% U.K. Treasury due Sept. 7, 2020.

The early purchase price equals the value of all remaining payments of principal and interest on the bonds up to and including the maturity date of Nov. 6, 2020, discounted to the settlement date at a discount rate equal to the early purchase yield minus accrued interest.

As previously reported, the company offered an early voting fee of 1%. The early deadline was 11 a.m. ET on March 14.

WPP also solicited consents for modifications to the terms of the bonds to facilitate the redemption of the bonds as proposed for approval by extraordinary resolution at a meeting held on March 25 in London. The company said in its Monday update that the extraordinary resolution was passed and the third supplemental trust deed for the bonds has been executed and the amendments are now effective.

Settlement will occur on March 27.

The company said the purpose of the tender offer was to provide liquidity to bondholders and to proactively manage the balance sheet of WPP plc and its subsidiaries.

WPP is also looking to redeem any notes that remain outstanding after the tender offer.

The dealer managers are Barclays Bank plc (+44 20 3134 8515 or eu.lm@barclays.com) or NatWest Markets plc (+44 20 7678 5222 or liabilitymanagement@natwestmarkets.com).

The tender and tabulation agent is Lucid Issuer Services Ltd. (+44 20 7704 0880 or wpp@lucid-is.com).

The communication services company is based in Dublin.

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