New Issue: MDC Partners sells upsized $225 million 11% seven-year notes at 95.336 to yield 12%

By Paul A. Harris

St. Louis, Oct. 20 - MDC Partners Inc. priced an upsized $225 million issue of 11% seven-year senior unsecured notes (B2/B+) at 95.336 to yield 12% on Tuesday, according to an informed source.

The deal, which was upsized from $200 million, priced on top of both coupon talk and yield talk.

Goldman Sachs & Co. ran the books.

Co-managers were J.P. Morgan Securities Inc., Jefferies & Co., William Blair, BMO Nesbitt Burns, RBC Capital Markets Corp., UBS Investment Bank and Scotia Capital.

Proceeds will be used to repay the company's senior secured credit facility maturing on June 17, 2012, to redeem its C$45 million of 8% convertible debentures due June 2010 and for general corporate purposes.

The issuer is a Toronto-based marketing and communications networking company.

Issuer:	MDC Partners Inc.
Face amount:	$225 million, increased from $200 million
Proceeds:	$214,506,000
Maturity:	Nov. 1, 2016
Securities:	Senior unsecured notes
Bookrunner:	Goldman Sachs & Co.
Co-managers:	J.P. Morgan Securities Inc., Jefferies & Co., William Blair, BMO Nesbitt Burns, RBC Capital Markets Corp., UBS Investment Bank, Scotia Capital
Coupon:	11%
Price:	95.336
Yield:	12%
Spread:	902 bps
Call features:	Make-whole call at Treasuries plus 50 bps until Nov. 1, 2013, then callable at 105.50, 102.75, par on and after Nov. 1, 2015
Equity clawback:	Until Nov. 1, 2012 for 35% at 111.0
Trade date:	Oct. 20
Settlement date:	Oct. 23
Ratings:	Moody's: B2
	Standard & Poor's B+
Distribution:	Rule 144A with registration rights
Price talk:	11% coupon to yield 12% area

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