| FORM 3 | UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 INITIAL STATEMENT OF BENEFICIAL OWNERSHIP OF SECURITIES Filed pursuant to Section 16(a) of the Securities Exchange Act of 1934 or Section 30(h) of the Investment Company Act of 1940 |
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1. Name and Address of Reporting Person*
(Street)
| 2. Date of Event Requiring Statement (Month/Day/Year) 03/13/2017 | 3. Issuer Name and Ticker or Trading Symbol MDC PARTNERS INC [ MDCA ] | |||||||||||||
| 4. Relationship of Reporting Person(s) to Issuer (Check all applicable)
| 5. If Amendment, Date of Original Filed (Month/Day/Year) | ||||||||||||||
6. Individual or Joint/Group Filing (Check Applicable Line)
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| Table I - Non-Derivative Securities Beneficially Owned | |||
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| 1. Title of Security (Instr. 4) | 2. Amount of Securities Beneficially Owned (Instr. 4) | 3. Ownership Form: Direct (D) or Indirect (I) (Instr. 5) | 4. Nature of Indirect Beneficial Ownership (Instr. 5) |
| Class A Subordinate Voting Shares | 9,500,000 | I | See footnotes(1)(2)(3)(5) |
| Table II - Derivative Securities Beneficially Owned (e.g., puts, calls, warrants, options, convertible securities) | |||||||
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| 1. Title of Derivative Security (Instr. 4) | 2. Date Exercisable and Expiration Date (Month/Day/Year) | 3. Title and Amount of Securities Underlying Derivative Security (Instr. 4) | 4. Conversion or Exercise Price of Derivative Security | 5. Ownership Form: Direct (D) or Indirect (I) (Instr. 5) | 6. Nature of Indirect Beneficial Ownership (Instr. 5) | ||
| Date Exercisable | Expiration Date | Title | Amount or Number of Shares | ||||
| Series 4 Preference Shares | (4) | (4) | Class A Subordinate Voting Shares | 9,500,000 | (4) | I | See footnoes(1)(2)(3)(5) |
| Explanation of Responses: |
| 1. The Reporting Person is a managing director of Goldman, Sachs & Co. ("Goldman Sachs"). Goldman Sachs is a subsidiary of by The Goldman Sachs Group, Inc. ("GS Group"). The Reporting Person disclaims beneficial ownership of the securities reported herein except to the extent of his pecuniary interest therein, if any. |
| 2. On February 14, 2017 the Issuer and Broad Street Principal Investments, L.L.C. ("BSPI") entered into a Securities Purchase Agreement (as amended from time to time, the "Purchase Agreement"), pursuant to which the Issuer agreed to issue and BSPI agreed to purchase (the "Private Placement") 95,000 Series 4 Convertible Preference Shares of the Issuer (the "Preference Shares") for a cash purchase price of $1,000.00 per share, with an aggregate purchase price of $95,000,000 (the "Purchase Price"). |
| 3. On March 6, 2017 BSPI assigned its right to purchase 11,813 and 4,187 Preference Shares of the Issuer to StoneBridge 2017, L.P., a Delaware limited partnership ("SB Employee Fund") and StoneBridge 2017 Offshore, L.P., a Cayman Islands exempted limited partnership ("SB Employee Fund Offshore," and together with SB Employee Fund, the "Employee Funds"), respectively, pursuant to two Assignment and Assumption Agreements. GS Group is the direct owner of BSPI and Bridge Street Opportunity Advisors, L.L.C. ("Bridge Street"). Bridge Street is the general partner of each Employee Fund. |
| 4. In connection with the closing of the Private Placement, on March 13, 2017 GS Group filed a notification and report form and related materials under the Hart-Scott Rodino Antitrust Improvements Act of 1976, as amended (the "HSR Act") with the United States Federal Trade Commission and the Antitrust Division of the United States Department of Justice. Upon the earlier of (i) the receipt of early termination under the HSR Act or (ii) the expiration of all waiting periods under the HSR Act (such date the "Precedent Date"), which is expected to occur within thirty days after such filing, BSPI and the Employee Funds shall have the right to convert the Preference Shares into Class A Subordinate Voting Shares of the Issuer (the "Class A Shares") in whole at any time and from time to time, and in part at any time and from time to time after the ninetieth day following the original issuance date of the Preference Shares, subject to certain ownership limitations. |
| 5. Following the Precedent Date, because of the relationship by and between GS Group, Goldman Sachs, BSPI and the Employee Funds, GS Group and Goldman Sachs may be deemed (for purposes of Rule 13d-3(a) and Rule 16a-1(a) only and not for any other applicable purpose) to beneficially own an aggregate of 134,471 Class A Shares, consisting of (i) 79,000 Class A Shares (deliverable to BSPI upon conversion of the Preference Shares directly held by BSPI), (ii) 16,000 Class A Shares (deliverable to the Employee Funds upon conversion of the Preference Shares directly held by the Employee Funds) and (iii) Goldman Sachs beneficially owns directly and GS Group may be deemed to beneficially own indirectly 39,471 shares of Class A Common Stock and Goldman Sachs also had open short positions of 127,396 shares of Class A Common Stock. |
| /s/ Yvette Kosic, Attorney-in-fact | 03/15/2017 | |
| ** Signature of Reporting Person | Date | |
| Reminder: Report on a separate line for each class of securities beneficially owned directly or indirectly. | ||
| * If the form is filed by more than one reporting person, see Instruction 5 (b)(v). | ||
| ** Intentional misstatements or omissions of facts constitute Federal Criminal Violations See 18 U.S.C. 1001 and 15 U.S.C. 78ff(a). | ||
| Note: File three copies of this Form, one of which must be manually signed. If space is insufficient, see Instruction 6 for procedure. | ||
| Persons who respond to the collection of information contained in this form are not required to respond unless the form displays a currently valid OMB Number. | ||
