Omnicom advances IPG merger with bondholder approval
Omnicom has received majority bondholder consent in its exchange offer for outstanding Interpublic Group (IPG) notes, marking a key step in its pending acquisition of IPG. The company confirmed that as of August 22, holders of a majority of each series of IPG’s outstanding notes had tendered into the offer.
The exchange allows Omnicom to replace up to $2.95 billion of existing IPG debt with new Omnicom senior notes and cash. It also amends covenants in IPG’s bond indentures, reducing restrictions ahead of the planned merger.
Exchange terms and timeline
Investors who tendered notes by the early deadline are eligible for $1,000 in new Omnicom notes plus a $1 cash consent fee for every $1,000 of IPG notes exchanged, along with an additional early tender premium. Those who exchange after the early deadline but before the final expiration on September 9 will receive $1,000 of new Omnicom notes per $1,000 of IPG notes, but without the consent payment.
Settlement is expected within two business days of the expiration date, though Omnicom may extend the deadline if the merger is not finalized by then.
Path to merger completion
The debt exchange is tied to Omnicom’s $11 billion acquisition of IPG, first announced in December 2024. Once completed, the deal will create one of the largest advertising groups in the world.
Lead managers for the offer include BofA Securities, J.P. Morgan Securities and Wells Fargo Securities, with several other global banks acting as co-managers.
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