Grey Global Group announced Tuesday it is to borrow up to $125 million (€106.9m; £74.31m) to be used for working capital "and other general corporate purposes which may include, without limitation, possible acquisitions".
But the New York-headquartered holding company, ranked world number seven in AdAge's global league table, insists it "has no specific agreements or commitments, and is not currently engaged in any negotiations, regarding any material acquisition."
Grey's fiscal mechanic is to issue $100 million in convertible subordinated debentures, transferable on demand into Grey common stock. The debt issue will be via a private placement with investors, becoming due thirty years hence. Grey may issue an additional $25 million in convertibles, raising the total borrowing as high as $125 million.
The agency declined further comment on the issue or its purpose.
Data sourced from: AdAge.com; additional content by WARC staff