WPP Sells Euro Bonds in Expanded Sale to Pay Debt Due Next Yearby
WPP Plc, the advertising and marketing services company that’s made a string of acquisitions this year, sold 600 million euros ($643 million) of bonds to refinance securities maturing next year.
The four-year notes will pay off debt due in May, a company spokesman said today by e-mail. The offer was increased from 500 million euros because of “strong demand,” he said.
WPP, which said it was taking advantage of market conditions, sold the bonds as borrowing costs on similar-maturity investment-grade debt decline from a 16-month high. The bonds priced to yield 0.772 percent, according to data compiled by Bloomberg. That compares with an average yield of 1.02 percent for euro-denominated notes due in three-to-five years, Bank of America Merrill Lynch index data show, down from 1.23 percent on Sept. 29.
London-based WPP has 498 million euros of 6.625 percent bonds due in May, data compiled by Bloomberg show. It’s rated BBB by Standard & Poor’s, the second-lowest investment grade.
WPP has snapped up stakes in businesses from Australia to Brazil and this month agreed to buy a majority share in agency Essence Digital Ltd. As Chief Executive Officer Martin Sorrell invests in fast-growth markets, new media and digital, according to statements on its website.