Omnicom Issues $550 Mil. in Convertible Bonds

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Omnicom sold $550 million worth of 30-year, zero-coupon, zero-yield convertible bonds in the private-placement market last week.

The bonds are unregistered and not meant for sale to the public but, rather, to institutions. However, they can be registered in the future for sale to individual investors.

Omnicom said in a statement that the proceeds will be used to repay debt and for corporate purposes.

Convertible bonds can be converted into stock under certain conditions. Alexia Quadrani, a Bear Stearns analyst, said the conversion could be profitable for bond holders if Omnicom’s stock trades above $103, a 43.6





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