0001144204-11-021881.txt : 20110414 0001144204-11-021881.hdr.sgml : 20110414 20110414082113 ACCESSION NUMBER: 0001144204-11-021881 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 20110414 ITEM INFORMATION: Regulation FD Disclosure ITEM INFORMATION: Other Events ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20110414 DATE AS OF CHANGE: 20110414 FILER: COMPANY DATA: COMPANY CONFORMED NAME: MDC PARTNERS INC CENTRAL INDEX KEY: 0000876883 STANDARD INDUSTRIAL CLASSIFICATION: SERVICES-ADVERTISING AGENCIES [7311] IRS NUMBER: 980364441 STATE OF INCORPORATION: A6 FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-13718 FILM NUMBER: 11758519 BUSINESS ADDRESS: STREET 1: 45 HAZELTON AVE CITY: TORONTO STATE: A6 ZIP: M5R 2E3 BUSINESS PHONE: 646 429 1800 MAIL ADDRESS: STREET 1: MDC PARTNERS INC. - LEGAL DEPT. STREET 2: 950 THIRD AVENUE CITY: NEW YORK STATE: NY ZIP: 10022 FORMER COMPANY: FORMER CONFORMED NAME: MDC CORP INC DATE OF NAME CHANGE: 20001204 FORMER COMPANY: FORMER CONFORMED NAME: MDC COMMUNICATIONS CORP DATE OF NAME CHANGE: 19961028 FORMER COMPANY: FORMER CONFORMED NAME: MDC CORPORATION DATE OF NAME CHANGE: 19950419 8-K 1 v218530_8k.htm
 

 
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
 
FORM 8-K
 
Current Report Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
 
Date of Report (Date Earliest Event reported) — April 14, 2011 (April 14, 2011)
 
MDC PARTNERS INC.
(Exact name of registrant as specified in its charter)

Canada
001-13718
98-0364441
(Jurisdiction of Incorporation)
(Commission File Number)
(IRS Employer Identification No.)
 
45 Hazelton Ave., Toronto, Ontario, Canada M5R 2E3
(Address of principal executive offices and zip code)
 
(416) 960-9000
(Registrant’s Telephone Number)
 

 
Check the appropriate box below if the Form 8−K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
 
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
 
Soliciting material pursuant to Rule 14a−12 under the Exchange Act (17 CFR 240.14a−12)
 
Pre−commencement communications pursuant to Rule 14d−2(b) under the Exchange Act (17 CFR 240.14d−2(b))
 
Pre−commencement communications pursuant to Rule 13e−4(c) under the Exchange Act (17 CFR 240.13e− 4(c))
 
 
 

 
 
Item 7.01. Regulation FD Disclosure.
 
On April 14, 2011, MDC Partners Inc. (“MDC”) commenced a private offering of $50 million aggregate principal amount of senior unsecured notes due 2016 (the “Notes”).  MDC is updating its disclosure under Item 7.01 of this Current Report on Form 8-K.  This information, some of which has not previously been reported, is excerpted from a confidential offering circular that is being disseminated in connection with the private offering.
 
Debt Financing
 
On March 31, 2011, there was an outstanding balance under MDC’s senior secured revolving credit facility that matures on October 23, 2014 (the “Facility”) of approximately $59.7 million and on April 12, 2011, the amount drawn under the Facility was approximately $68.7 million. MDC intends to use the net proceeds from the potential Notes offering to repay the amount drawn under the Facility to the full extent of the net proceeds received.

Item 8.01. Other Events
 
On April 14, 2011, MDC issued a press release announcing its intention to offer, in a private placement, the Notes.  MDC intends to use the net proceeds of this offering to repay the amount drawn under the Facility to the full extent of the net proceeds received.  A copy of the press release is attached hereto as Exhibit 99.1 and is incorporated herein by reference.
 
Item 9.01. Financial Statements and Exhibits
 
(d) Exhibits.
 
99.1           Text of press release issued by MDC Partners Inc. on April 14, 2011, regarding the Notes.

 
2

 
 
Signatures

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed by the undersigned hereunto duly authorized.
 
 
Date:  April 14, 2011
MDC Partners Inc.
 
       
 
By:
/s/ David C. Ross        
   
David C. Ross
 
   
Associate General Counsel & Assistant Secretary
 
       

 
 
3

 
 
EX-99.1 2 v218530_ex99-1.htm
 
Exhibit 99.1

 
PRESS RELEASE
FOR IMMEDIATE RELEASE
 
FOR:
MDC Partners Inc.
 
CONTACT:
David Doft
 
950 Third Avenue, 5th Floor
   
Chief Financial Officer
 
New York, NY 10022
   
646-429-1818
 
ddoft@mdc-partners.com
     
 
MDC PARTNERS INC. ANNOUNCES US$50 MILLION OFFERING OF NOTES
 
NEW YORK, NY (April 14, 2011) – MDC Partners Inc. (“MDC Partners” or the “Company”) today announced that it intends to offer, in a private placement, US$50 million aggregate principal amount of senior unsecured notes due 2016 (the “Notes”). MDC Partners intends to use the net proceeds of this offering to repay borrowings under its senior secured revolving credit facility maturing on October 23, 2014, to the full extent of the net proceeds received.
 
The Notes will be offered only to qualified institutional buyers under Rule 144A of the Securities Act of 1933, as amended (the “Securities Act”), and to non-U.S. persons in transactions outside the United States under Regulation S of the Securities Act. The Notes have not been registered under the Securities Act, and, unless so registered, may not be offered or sold in the United States absent registration or an applicable exemption from, or in a transaction not subject to, the registration requirements of the Securities Act and other applicable securities laws. MDC Partners has agreed, to the extent the Notes do not become freely transferable without restriction under the Securities Act following the one-year anniversary of their issuance, to file a Registration Statement with the U.S. Securities and Exchange Commission.
 
This press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of the Notes in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction. This notice is being issued pursuant to and in accordance with Rule 135(c) under the Securities Act.
 
About MDC Partners Inc.
 
MDC is a Business Transformation Organization that utilizes technology, marketing communications, data analytics and insights and strategic consulting solutions to drive meaningful returns on Marketing and Communications Investments for multinational clients in the United States, Canada, Europe, and the Carribean.
 
MDC’s durable competitive advantage is to Empower the Most Talented Entrepreneurial Thought Leaders to Drive Business Success to new levels of Achievement, for both our Clients and our Shareholders, reinforcing MDC’s reputation as “The Place Where Great Talent Lives.”
 
MDC Partners’ Class A shares are publicly traded on NASDAQ under the symbol “MDCA” and on the Toronto Stock Exchange under the symbol “MDZ.A”.
 
FORWARD LOOKING STATEMENTS
 
This press release contains forward-looking statements. MDC’s representatives may also make forward-looking statements orally from time to time. Statements in this release that are not historical facts, including statements about MDC’s beliefs and expectations, recent business and economic trends, potential acquisitions, estimates of amounts for deferred acquisition consideration and “put” option rights, constitute forward-looking statements. These statements are based on current plans, estimates and projections, and are subject to change based on a number of factors, including those outlined in this section. Forward-looking statements speak only as of the date they are made, and MDC undertakes no obligation to update publicly any of them in light of new information or future events, if any.
 
 
 

 
 
Forward-looking statements involve inherent risks and uncertainties. A number of important factors could cause actual results to differ materially from those contained in any forward-looking statements. Such risk factors include, but are not limited to the following:
 
 
·
risks associated with severe effects of national and regional economic downturn;
 
·
MDC’s ability to attract new clients and retain existing clients;
 
·
the financial success of MDC’s clients;
 
·
MDC’s ability to retain and attract key employees;
 
· 
MDC’s ability to remain in compliance with its debt agreements and MDC’s ability to finance its contingent payment obligations when due and payable, including but not limited to those relating to “put” options rights and deferred acquisition consideration;
 
· 
the successful completion and integration of acquisitions which complement and expand MDC’s business capabilities; and
 
· 
foreign currency fluctuations.
 
MDC’s business strategy includes ongoing efforts to engage in material acquisitions of ownership interests in entities in the marketing communications services industry. MDC intends to finance these acquisitions by using available cash from operations, from borrowings under a senior secured revolving credit facility entered into on October 23, 2009, as the same may be amended or replaced from time to time, and through incurrence of bridge or other debt financing, any of which may increase MDC’s leverage ratios, or by issuing equity, which may have a dilutive impact on existing shareholders proportionate ownership. At any given time MDC may be engaged in a number of discussions that may result in one or more material acquisitions. These opportunities require confidentiality and may involve negotiations that require quick responses by MDC. Although there is uncertainty that any of these discussions will result in definitive agreements or the completion of any transactions, the announcement of any such transaction may lead to increased volatility in the trading price of MDC’s securities.
 
Investors should carefully consider these risk factors and the additional risk factors outlined in more detail in the Annual Report on Form 10-K under the caption “Risk Factors” and in MDC’s other SEC filings.
 
 
 

 
 
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