Paris-headquartered Havas Advertising, parent of Euro RSCG Worldwide, the Diversified Agencies Group, and the Arnold Worldwide networks, has completed a $700 million bond issue.
The deal will be used to refinance the debt incurred earlier this year with the purchase of US marketing services group Snyder Communications; it will also serve as a warchest for further targeted acquisitions to beef-up the three networks, as well as their sibling, the Media Planning Group based in Barcelona.
According to Havas, currently world number four in the agency rankings, the transaction will optimise its funding policy, allowing it to benefit from attractive bond terms while preserving shareholders' interests. The bonds can either be converted into new shares or exchanged for existing shares via a share buy-back programme.
News Source: CampaignLive (UK)