The Stagwell Group’s $100 Million Investment In MDC Partners


Simpson Thacher represented MDC Partners Inc. (NASDAQ: MDCA) (“MDC”) in connection with a $100 million investment by The Stagwell Group through the sale by MDC of common shares and non-voting convertible preference shares.

The transaction represents the conclusion of a strategic review process and CEO search initiated in September 2018. MDC expects to use the net proceeds from the investment to pay down existing debt under the Company’s credit facility and for general corporate purposes. In connection with the transaction, Mark Penn will join MDC as CEO and a member of the board of directors.

MDC is a leading provider of global marketing, advertising, activation, communications and strategic consulting solutions, and is one of the most influential marketing and communications networks in the world.

The Simpson Thacher team included Caroline Gottschalk (Picture), Michael Wolfson, Daniel Webb, Eric Swedenburg, Jonathan Stradling, Robert Maloney Derham, Ngozi Nezianya and Lillian Morgenstern (Corporate); Andrew Blau and Monisha Bhayana (Employee Benefits); Christopher Brown, James Doyle and Mark Haddox (Credit); Rob Holo and Sarah Katz (Tax); Risë Norman (Capital Markets); and Karen Hsu Kelley and Amanda Weiss (PCAP).

Involved fees earner: Monisha Bhayana – Simpson Thacher & Bartlett; Andrew Blau – Simpson Thacher & Bartlett; Christopher Brown – Simpson Thacher & Bartlett; James Doyle – Simpson Thacher & Bartlett; Caroline Gottschalk – Simpson Thacher & Bartlett; Mark Haddox – Simpson Thacher & Bartlett; Robert Holo – Simpson Thacher & Bartlett; Karen Hsu Kelley – Simpson Thacher & Bartlett; Sarah Katz – Simpson Thacher & Bartlett; Robert Maloney Derham – Simpson Thacher & Bartlett; Lillian Morgenstern – Simpson Thacher & Bartlett; Ngozi Nezianya – Simpson Thacher & Bartlett; Risë Norman – Simpson Thacher & Bartlett; Jonathan Stradling – Simpson Thacher & Bartlett; Eric Swedenburg – Simpson Thacher & Bartlett; Daniel Webb – Simpson Thacher & Bartlett; Amanda Weiss – Simpson Thacher & Bartlett; Michael Wolfson – Simpson Thacher & Bartlett;

Law Firms: Simpson Thacher & Bartlett;

Clients: MDC Partners Inc.;

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Author: Ambrogio Visconti