UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
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Item 1.01 Entry into a Material Definitive Agreement.
On April 1, 2020, Omnicom Group Inc. (the “Company”) closed its public offering of $600 million aggregate principal amount of 4.200% Senior Notes due 2030 (the “Notes”), pursuant to the Underwriting Agreement, dated March 27, 2020 (the “Underwriting Agreement”), with Citigroup Global Markets Inc., BofA Securities, Inc. and J.P. Morgan Securities LLC, as representatives of the several underwriters. The Notes have been registered under the Securities Act of 1933, as amended, pursuant to the Company’s shelf registration statement on Form S-3 (File No. 333-236502) (the “Registration Statement”), which became effective upon filing with the Securities and Exchange Commission on February 19, 2020.
The net proceeds received by the Company, after deducting the underwriting discounts and estimated offering expenses payable by the Company, were approximately $592.5 million. The Company intends to use such net proceeds for general corporate purposes, which could include working capital expenditures, fixed asset expenditures, acquisitions, repayment of commercial paper and short-term debt, refinancing of other debt or other capital transactions.
The Notes were issued pursuant to an Indenture, dated as of February 21, 2020 (the “Base Indenture”), between the Company and Deutsche Bank Trust Company Americas, as trustee (the “Trustee”), as amended by the Second Supplemental Indenture, dated as of April 1, 2020, between the Issuer and the Trustee (the “Second Supplemental Indenture”). The Notes will bear interest from April 1, 2020, at a rate equal to 4.200% per year, payable semi-annually in arrears on June 1 and December 1 of each year, commencing on June 1, 2020. The Notes will mature on June 1, 2030.
Subject to certain exceptions, the Base Indenture, together with the Second Supplemental Indenture (collectively, the “Indenture”), contains covenants limiting (i) the Company’s and its subsidiaries’ ability to create certain liens; and (ii) the Company’s ability to consolidate or merge with, or convey, transfer or lease substantially all its assets to, another person. The Indenture does not contain any provision that would limit the Company’s ability to incur indebtedness or that would afford holders of the Notes protection in the event of a sudden and significant decline in the credit quality or rating of the Company or a takeover, recapitalization or highly leveraged or similar transactions involving the Company.
The Notes are the unsecured and unsubordinated obligations of the Company and rank equal in right of payment with all existing and any future unsecured senior and unsubordinated indebtedness of the Company. The Indenture contains customary event of default provisions.
Prior to March 1, 2030 (the date that is three months prior to the maturity date of the Notes), the Notes will be redeemable, as a whole or in part, at the Company’s option, at any time or from time to time at a redemption price equal to 100% of the principal amount of the Notes to be redeemed plus a make-whole premium, together with accrued and unpaid interest thereon to, but excluding, the redemption date. On or after such date, the Notes will be redeemable, as a whole or in part, at the Company’s option, at any time or from time to time at a redemption price equal to 100% of the principal amount of the Notes to be redeemed, together with accrued and unpaid interest thereon, if any, to, but excluding, the redemption date.
Upon the occurrence of a “change of control triggering event,” as defined in the Indenture, unless the Company has exercised its option to redeem the Notes, the Company will be required to make an offer to repurchase the Notes at a purchase price equal to 101% of their principal amount, plus accrued and unpaid interest, if any, to the date of repurchase.
The foregoing description of the terms of the Notes, the Base Indenture and the Second Supplemental Indenture does not purport to be complete and is qualified in its entirety by reference to the full text of the Notes, the Base Indenture and the Second Supplemental Indenture. The Second Supplemental Indenture is attached hereto as Exhibit 4.1 and is incorporated herein by reference.
Item 2.03. Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant.
The information contained in Item 1.01 is incorporated herein by reference.
Item 8.01. Other Events.
In connection with the offering of the Notes, the Company is filing herewith the Underwriting Agreement and certain other items listed below as exhibits to this Current Report on Form 8-K, which are incorporated by reference into the Registration Statement. The Underwriting Agreement includes the terms and conditions of the offer and sale of the Notes, indemnification and contribution obligations and other terms and conditions customary in agreements of this type. The foregoing disclosure is qualified in its entirety by reference to the Underwriting Agreement, which is attached hereto as Exhibit 1.1 and is incorporated herein by reference.
Item 9.01. Financial Statements and Exhibits.
(d) Exhibits.
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Exhibit |
Description |
| 1.1 | Underwriting Agreement, dated March 27, 2020, among Omnicom Group Inc., Citigroup Global Markets Inc., BofA Securities, Inc. and J.P. Morgan Securities LLC, as representatives of the several underwriters named therein |
| 4.1 | Second Supplemental Indenture, dated as of April 1, 2020, among Omnicom Group Inc., as issuer, and Deutsche Bank Trust Company Americas, as trustee |
| 4.2 | Form of 4.200% Notes due 2030 (included in Exhibit 4.1) |
| 5.1 | Opinion of Jones Day |
| 23.1 | Consent of Jones Day (included in Exhibit 5.1 hereof) |
| 104 | The cover page from this Current Report on Form 8-K, formatted in Inline XBRL |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| Omnicom Group Inc. | |||
| By: | /s/ Philip J. Angelastro | ||
| Name: | Philip J. Angelastro | ||
| Title: | Executive Vice President and | ||
| Chief Financial Officer | |||
Date: April 1, 2020