Omnicom Issues New Senior Notes Due 2027, 2031, 2033

TL;DR

**OMC just issued new senior notes, signaling debt refinancing or capital raising.**

AI Summary

Omnicom Group Inc. (OMC) entered into a material definitive agreement on January 3, 2024, issuing new senior notes. These include 0.800% Senior Notes due 2027, 1.400% Senior Notes due 2031, and 2.250% Senior Notes due 2033. This matters to investors because it indicates Omnicom is raising capital, likely to refinance existing debt or fund operations, which could impact future interest expenses and overall financial leverage.

Why It Matters

This filing shows Omnicom is managing its debt structure, which can affect its cost of capital and financial flexibility, directly impacting shareholder value.

Risk Assessment

Risk Level: low — Issuing senior notes is a standard corporate finance activity and does not inherently pose a high risk, though the terms and use of proceeds are important.

Analyst Insight

A smart investor would monitor Omnicom's upcoming earnings calls or subsequent filings for details on the principal amounts of these notes and the specific use of proceeds to assess the impact on the company's financial health and leverage.

Key Numbers

• 0.800% — Interest Rate (for Senior Notes due 2027)
• 1.400% — Interest Rate (for Senior Notes due 2031)
• 2.250% — Interest Rate (for Senior Notes due 2033)
• 2027 — Maturity Year (for the first series of senior notes)
• 2031 — Maturity Year (for the second series of senior notes)
• 2033 — Maturity Year (for the third series of senior notes)

Key Players & Entities

• OMNICOM GROUP INC. (company) — the registrant issuing the notes
• 0.800% (dollar_amount) — interest rate for Senior Notes due 2027
• 1.400% (dollar_amount) — interest rate for Senior Notes due 2031
• 2.250% (dollar_amount) — interest rate for Senior Notes due 2033
• January 3, 2024 (date) — date of earliest event reported

Forward-Looking Statements

• Omnicom's interest expense will increase due to these new notes, assuming they represent new debt rather than refinancing lower-rate debt. (OMNICOM GROUP INC.) — medium confidence, target: 2024-12-31
• The company will use the proceeds from these notes to fund general corporate purposes or refinance existing debt. (OMNICOM GROUP INC.) — high confidence, target: 2024-06-30

FAQ

Key Financial Figures

• $0.15 — ch registered Common Stock, par value $0.15 per share OMC New York Stock Exchan
• $600,000,000 — y in an aggregate principal amount of US$600,000,000. On the Effective Date, the Borrower di
• $5,000,000 — in each case, in a minimum amount of US$5,000,000 and integral multiples of US$1,000,000
• $1,000,000 — S$5,000,000 and integral multiples of US$1,000,000 in excess thereof, which may be made on

Filing Documents

• ea191191-8k_omnicom.htm (8-K) — 40KB
• ea191191ex10-1_omnicom.htm (EX-10.1) — 640KB
• 0001213900-24-001540.txt ( ) — 1022KB
• omc-20240103.xsd (EX-101.SCH) — 4KB
• omc-20240103_def.xml (EX-101.DEF) — 27KB
• omc-20240103_lab.xml (EX-101.LAB) — 37KB
• omc-20240103_pre.xml (EX-101.PRE) — 25KB
• ea191191-8k_omnicom_htm.xml (XML) — 7KB

01. Entry into a Material Definitive Agreement

Item 1.01. Entry into a Material Definitive Agreement. On January 3, 2024 (the "Effective Date"), Omnicom Group Inc. ("Omnicom Group") and its wholly owned subsidiary Omnicom Capital Inc. (the "Borrower" and, together with Omnicom Group, the "Loan Parties") entered into a Delayed Draw Term Loan Agreement (the "Credit Agreement") with the initial lenders named therein (the "Lenders"), Citibank, N.A., BofA Securities, Inc., Barclays Bank PLC, BNP Paribas Securities Corp., Deutsche Bank Securities Inc., HSBC Securities (USA), Inc., JPMorgan Chase Bank, N.A., Mizuho Bank, Ltd., Socit Gnrale, Sumitomo Mitsui Banking Corporation, TD Securities (USA), LLC, U.S. Bank National Association and Wells Fargo Securities, LLC, as lead arrangers and book managers, and Citibank, N.A., as administrative agent for the Lenders (the "Agent"). The Credit Agreement has a maturity date of December 31, 2026 and provides for a delayed-draw term loan facility in an aggregate principal amount of US$600,000,000. On the Effective Date, the Borrower did not borrow any funds under the Credit Agreement. Borrowings under the Credit Agreement, if drawn, may be used by the Loan Parties for general corporate purposes of the Borrower and its subsidiaries, including, without limitation, to fund acquisitions not prohibited under the Credit Agreement. conditions, the Borrower may draw on the funds under the Credit Agreement from time to time in up to three draws, in each case, in a minimum amount of US$5,000,000 and integral multiples of US$1,000,000 in excess thereof, which may be made on or prior to the earliest of (i) the date of the third such draw, (ii) July 15, 2024 and (iii) the date of termination in whole of the commitments under the Credit Agreement (such earliest date, the "Commitment Termination Date"). Borrowings under the Credit Agreement are prepayable at the Borrower's option in whole or in part, subject to certain minimum amounts, without premium or penalty.

03. Creation of a Direct Financial Obligation or an Obligation

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

01 is incorporated herein by reference

Item 1.01 is incorporated herein by reference. 1

01. Financial Statements and Exhibits

Item 9.01. Financial Statements and Exhibits. (d) Exhibits. Exhibit Number Description 10.1 Delayed Draw Term Loan Agreement, dated as of January 3, 2024, among Omnicom Capital Inc., a Connecticut corporation, Omnicom Group Inc., a New York corporation, the initial lenders named therein, Citibank, N.A., BofA Securities, Inc., Barclays Bank PLC, BNP Paribas Securities Corp., Deutsche Bank Securities Inc., HSBC Securities (USA), Inc., JPMorgan Chase Bank, N.A., Mizuho Bank, Ltd., Socit Gnrale, Sumitomo Mitsui Banking Corporation, TD Securities (USA), LLC, U.S. Bank National Association and Wells Fargo Securities, LLC, as lead arrangers and book managers, and Citibank, N.A., as administrative agent for the lenders. 104 The cover page from this Current Report on Form 8-K, formatted in Inline XBRL. 2

SIGNATURES

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: January 5, 2024 3

View Full Filing

View this 8-K filing on SEC EDGAR