By Paul Deckelman
New York, March 28 - MDC Partners, Inc. priced a $75 million add-on to its existing 6¾% senior notes due April 1, 2020 (B3/B-/) on Friday, high-yield market sources said.
The quickly shopped add-on priced at 105.25 for a yield to worst of 5.276%.
The tap brings the total amount of the bonds now outstanding to $735 million.
J.P. Morgan Securities LLC and Goldman Sachs & Co. were the joint bookrunners on the deal.
The notes were sold under Rule 144A and Regulation S and will be guaranteed by all of MDC's existing and future restricted subsidiaries that guarantee, or are co-borrowers under or grant liens to secure, MDC's senior secured revolver.
The New York-based marketing communications services company plans to use the proceeds from the offering for general corporate purposes, including the funding of deferred acquisition consideration, working capital, acquisitions and the repayment of the amount outstanding, if any, under the company's senior secured revolver.
The original $550 million tranche of the notes priced on March 15, 2013. The notes priced at par after the offering was upsized from an original $500 million.
MDC sold a $110 million add-on to the 6¾% notes in a quick-to-market deal that priced on Nov. 12 at 103.75 to yield 5.766%, after upsizing the offering from $100 million, bringing the total amount outstanding at that time to $660 million.
The 2020 notes can be redeemed via a make-whole call at Treasuries plus 50 bps until April 1, 2016 and will then then be callable at 103.375, 101.688, and finally at par on and after April 1, 2018.
An equity clawback allowing the company to repurchase up to 35% of the notes at 106.75 using any equity-sale proceeds is in effect until April 1, 2016.
The notes' indenture also contains a provision for a change-of-control put at 101%.
Aleesia Forni contributed to this report
| Issuer: | MDC Partners, Inc.
|
| Amount: | $75 million
|
| Proceeds: | $78.9 million
|
| Maturity: | April 1, 2020
|
| Security description: | Add-on to 6¾% senior notes due April 1, 2020
|
| Bookrunners: | J.P. Morgan Securities LLC, Goldman Sachs & Co.
|
| Co-managers: | BMO Securities, RBC Capital Markets Corp., Wells Fargo Securities LLC
|
| Coupon: | 6¾%
|
| Price: | 105.25
|
| Yield to worst: | 5.276%
|
| Spread: | 387 bps
|
| Call features: | Make-whole call at Treasuries plus 50 bps until April 1, 2016, then callable at 103.375, 101.688, and finally at par on and after April 1, 2018
|
| Equity clawback: | Up to 35% at 106.75 until April 1, 2016
|
| Change-of-control put: | 101%
|
| Ratings: | Moody's: B3
|
| Standard & Poor's: B-
|
| Distribution: | Rule 144A and Regulation S
|
| Marketing: | Quick to market
|
| Original issue: | $550 million priced at par on March 15, 2013; $110 million previous add-on priced at 103.75 on Nov. 12, 2013
|
| Fungibility: | Add-on notes will be fungible with the original notes
|
| Total issue size: | $735 million
|
| Marketing: | Quick to market
|
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