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WPP GROUP PLC SIGNS AGREEMENT WITH BANKING SYNDICATE

 WPP GROUP PLC SIGNS AGREEMENT WITH BANKING SYNDICATE
 LONDON, July 1 /PRNewswire/ -- WPP Group plc (WPP)


(ADS-NASDAQ: WPPGY) is pleased to announce that it has signed agreements with its banking syndicate. Subject, inter alia, to shareholder approval, the banking syndicate has agreed to exchange some $271.6 million (approximately 143 million pounds sterling), being some 25 percent of the debt provided by the banking syndicate, for approximately 239.5 million new convertible preferred shares. The proceeds will be applied to reduce bank borrowings. Each new convertible preferred share will be allotted at a price in dollars equivalent to 60p and will be convertible into one ordinary share until December 2001. There will be appropriate clawback arrangements whereby WPP shareholders and warrant holders will be invited to subscribe for the equivalent number of ordinary shares.
 As part of the restructuring, WPP will present proposals to the holders of its existing 8.25p convertible preference shares, whereby all these shares will be converted as a class into ordinary shares. The final agreements with the banking syndicate provide for the conversion of each existing 8.25p convertible preference share into 0.75 ordinary shares, being approximately five times the existing conversion terms.
 Subject, inter alia, to shareholder approval to the conversion of the existing convertible preference shares, the banking syndicate will extend the maturity of its existing facilities provided to WPP to June 1997 and will provide new facilities of up to $150 million to the Group for a period of two years.
 It is intended that a circular setting out full details of the capital restructuring proposal and seeking shareholder approval thereto will be dispatched to shareholders by July 12, 1992.
 -0- 7/1/92
 /CONTACT: Martin Sorrell, Robert Lerwill or Feona McEwan of WPP Group plc, 071-408-2204; Rupert Faure Walker of Samuel Montagu & Co. Limited, 071-260-9290; or Barclays de Zoete Wedd Limited, Advisers to the banking syndicate, 071-623-2323/
 (WPPGY) CO: WPP Group plc ST: IN: ADV SU:


SH-OS -- NY029 -- 5576 07/01/92 10:21 EDT
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Publication:PR Newswire
Date:Jul 1, 1992
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