S&P rates Omnicom notes BBB+

S&P said it assigned its BBB+ issue-level rating to Omnicom Finance Holdings plc’s proposed €1 billion senior unsecured notes, which the company expects to issue in two tranches (one maturing in 2027 and other maturing in 2031).

S&P expects the company to use the proceeds from these notes to repay approximately $500 million of its outstanding debt maturing in 2019 and for general corporate purposes.

Omnicom Finance Holdings plc’s parent, Omnicom Group Inc., provides an unconditional guarantee for the notes as it does for the company's other public debt.

“Our ratings on Omnicom reflect its position as one of the dominant global advertising agencies with significant capabilities across disciplines and geographies,” S&P said in a news release.

“The rating also incorporates our expectation that Omnicom will maintain its prudent financial policy with respect to acquisitions and shareholder returns and leverage of less than 2x on a sustained basis,” the agency said.

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