The deal allows The Interpublic Group of Companies to amend certain terms of its $500m (拢308m), 364-day multicurrency revolving credit facility and a similar five-year $375m facility. The company had previously paid a 9.5 cent quarterly dividend and it will now not pay a dividend in March.
Interpublic also confirmed that it is offering its market-research business NFO WorldGroup for sale and has hired Goldman Sachs to assist with the sale. It has been reported that Interpublic will likely receive soon a second round of bids for NFO WorldGroup.
Aegis, owner of media-buying group Carat, is understood to be a frontrunner in the bidding war for NFO, with Taylor Nelson Sofres and French media firm Ipsos also said to be bidding. The bids are thought to range from $450m to $550m.
WPP Group has dropped out of the race, balking at the price. It is reported that WPP was prepared to pay between $350m and $400m. It is unclear if United Business Media, which owns research firm NOP, is still in the running.
The sale of NFO is designed to inject some much needed cash into Interpublic's coffers as it faces a formal investigation by the US financial watchdog the Securities & Exchange Commission.
The investigation is related to $181.3m in improperly booked revenues at McCann-Erickson WorldGroup, which cost Sal LaGreca, chief financial officer of the agency, his job. CEO John Dooner has come under considerably pressure and it is uncertain whether he will survive.
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