Goldman Sachs is prepared to make an equity investment in holding company MDC Partners to the tune of around $95 million, Reuters reports.
According to the publication, the holding company “entered into a definitive agreement with an affiliate of merchant banking division of Goldman Sachs.”
MDC Partners, which counts 72andSunny, CP+B and Anomaly among its agencies, has been struggling of late. In November its stock dropped 60 percent, hitting a seven year low, after it failed to hit Q3 performance goals.
Retuers reports that Goldman Sachs’ $10 conversion price represents a “48% premium to 30-day average closing price of $6.75 per share.” Upon completion of the transaction, Goldman Sachs will own around 15 percent of the holding company’s outstanding equity. Bradley Gross, who serves as a managing director for the Goldman Sachs merchant banking division, will join the board of MDC Partners, expanding it to seven members. MDC Partners, in turn, is expected to use the net proceeds to pay down existing debts, as well as for “general corporate purposes.”