IPG to Issue New Shares to Cover Debt, Finances

NEW YORK Interpublic Group said on Tuesday that it plans to issue an additional 28.9 million shares of stock in two offerings to raise an estimated $975 million. The money will be used to pay off debt and strengthen the company’s balance sheet.

About three-quarters of the shares (22.4 million) will take the form of common stock, while the remaining 6.5 million shares will be Series A mandatory convertible preferred stock, IPG said. The common stock offering is expected to raise $650 million and the convertible offering, about $325 million, according to IPG.

IPG’s move to issue additional stock was signaled in an SEC filing last month. The lead underwriters for the offerings are Citigroup, JPMorgan and UBS.