The Interpublic Group of Companies, Inc. Enters into an Amendment and Restatement of the Credit Agreement
November 04, 2021 at 05:12 pm EDT
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The Interpublic Group of Companies, Inc. entered into an amendment and restatement (the ?Amendment?) of the Company?s credit agreement originally dated as of July 18, 2008 (as amended and restated as of November 1, 2019, as further amended prior to November 1, 2021, and as amended and restated pursuant to the Amendment, the ?Credit Agreement?), by and among the Company, the initial lenders named therein, Citibank, N.A. (?Citibank?), as administrative agent; Bank of America, N.A. and JPMorgan Chase Bank, N.A. (?JPMorgan?), as co-syndication agents; Morgan Stanley MUFG Loan Partners, LLC, acting through Morgan Stanley Senior Funding, Inc. (?Morgan Stanley?) and MUFG Bank Ltd. (?MUFG?), as documentation agent; and Citibank, JPMorgan, BofA Securities, Inc. and Morgan Stanley MUFG Loan Partners, LLC, acting through Morgan Stanley and MUFG, as joint lead arrangers and joint book managers. Under the Amendment, among other things, the maturity date of the Credit Agreement was extended to November 1, 2026. The revolving commitments under the Credit Agreement remain unchanged at $1.5 billion, and the Company continues to have the ability to increase the commitments under the Credit Agreement from time to time by an additional amount of up to $250 million, provided the Company receives commitments for such increases and satisfies certain other conditions. Pursuant to the Amendment, the cost structure has changed. Based on the Company?s current credit ratings, the applicable margin for Base Rate borrowings is 0.125%, for EURIBOR and SONIA borrowings is 1.125%, and for Term SOFR borrowing is 1.225% (each of Base Rate, EURIBOR, SONIA and Term SOFR as defined in the Credit Agreement), and the facility fee payable on a lender?s revolving commitment is 0.125%.
The Interpublic Group of Companies, Inc. is a world leader in publicity and marketing services. The group designs and executes publicity campaigns and supplies consulting, media space purchasing, strategic planning, direct marketing, public relations, institutional communication, and other services. Net sales break down by activity network as follows:
- integrated agency network (85.8%): Draftfcb, Lowe, McCann, Campbell-Ewald, Hill Holliday, etc.;
- specialized agency network (14.2%): primarily Weber Shandwick, FutureBrand, DeVries, GolinHarris, Jack Morton and Octagon Worldwide.
Net sales break down geographically as follows: the United States (64.6%), the United Kingdom (8.2%), Europe (8.5%), Asia-Pacific (8.8%), Latin America (4%) and other (5.9%).
THE INTERPUBLIC GROUP OF COMPANIES, INC. 
