October 19, 2009 11:36 AM
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MDC Partners Adds Debt Following Revenue Decline
(MoneyWatch) MDC Partners is taking on $275 million in new debt at a time when its revenues are in decline, according to an SEC filing.
It's selling $200 million in debt due in 2016 in order to pay off a $45 million Canadian loan due in 2010. It's also adding "a new 5-year US$75 million revolving credit facility" to replace its $12 million revolver.
In addition to paying off old debts, the parent company of Crispin Porter + Bogusky and Kirshenbaum Bond Senecal + Partners will use the new cash for "for general corporate purposes."
On its Q2 2009 balance sheet, MDC recorded $233 million in short-term debt and $391 million in long-term debt. The company's revenues declined 14 percent to $135 million.
It's selling $200 million in debt due in 2016 in order to pay off a $45 million Canadian loan due in 2010. It's also adding "a new 5-year US$75 million revolving credit facility" to replace its $12 million revolver.
In addition to paying off old debts, the parent company of Crispin Porter + Bogusky and Kirshenbaum Bond Senecal + Partners will use the new cash for "for general corporate purposes."
On its Q2 2009 balance sheet, MDC recorded $233 million in short-term debt and $391 million in long-term debt. The company's revenues declined 14 percent to $135 million.
- See BNET's previous coverage of MDC:
- MDC Partners to Continue Axing Jobs; 1,300 Gone So Far
- How Big Is MDC's Deal With Attention Partners? Not Very.
- Could Crispin Steal Xbox From McCann? One Wall Street Analyst Thinks Maybe
- MDC's Crispin and Kirshenbaum Lose Accounts as Obligations to Partners Increase
- MDC Partners Q2: Nadal's Stated Goal of Growth Recedes Ever Faster
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