Stagwell Inc. (STGW) Announces Closing of Senior Notes Issuance to Refinance Existing Debt

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Stagwell Inc. (STGW) has successfully closed a $1.0 billion offering of 5.625% senior unsecured notes through its subsidiary, Midas OpCo Holdings LLC. Proceeds will be used to redeem $870.3 million of existing 7.50% senior notes due 2024 and to reduce credit facility borrowings. The offering was conducted under Rule 144A and Regulation S of the Securities Act. Stagwell focuses on transforming marketing through innovative approaches, employing over 12,000 specialists globally.

Positive

• Successfully raised $1 billion through the issuance of senior unsecured notes.
• Redeemed $870.3 million of existing higher-interest senior notes, lowering interest expenses.

Negative

• None.

NEW YORK, Aug. 20, 2021 /PRNewswire/ -- (NASDAQ:STGW) -- Stagwell Inc. ("Stagwell") today announced the closing of the previously announced offering (the "Offering") by its subsidiary Midas OpCo Holdings LLC (the "Issuer") of $1.0 billion aggregate principal amount of 5.625% senior unsecured notes (the "Notes") to qualified institutional buyers in the United States pursuant to Rule 144A under the Securities Act of 1933, as amended (the "Securities Act") and to certain non-United States persons in transactions outside the United States pursuant to Regulation S under the Securities Act.

A portion of the proceeds from the Offering was used to redeem all $870.3 million aggregate principal amount of the Issuer's outstanding 7.50% Senior Notes due 2024 (the "Existing Notes"), including accrued interest, related premiums, fees and expenses. The Issuer intends to use the remaining proceeds of the Offering to reduce credit facility borrowings and for general corporate purposes.

The Notes and the related note guarantees may not be offered or sold in the United States or to, or for the benefit of, U.S. persons absent registration under, or an applicable exemption from, the registration requirements of the Securities Act and applicable state securities laws.

This press release does not constitute an offer to sell or the solicitation of an offer to buy the Notes or any other security and shall not constitute an offer, solicitation or sale in any jurisdiction in which, or to any persons to whom, such offering, solicitation or sale would be unlawful. Any offers of the Notes are being made only by means of a private offering circular. This press release is being issued pursuant to and in accordance with Rule 135c under the Securities Act.

About Stagwell Inc.

Stagwell is the challenger holding company built to transform marketing. Stagwell delivers scaled creative performance for the world's most ambitious brands, connecting culture-moving creativity with leading-edge technology to harmonize the art and science of marketing.  Led by entrepreneurs, Stagwell's 12,000+ specialists in 30+ countries are unified under a single purpose: to drive effectiveness and improve business results for their clients.

Forward-Looking Statements

This communication may contain certain forward-looking statements (collectively, "forward-looking statements") within the meaning of Section 27A of the U.S. Securities Act of 1933, as amended and Section 21E of the U.S. Exchange Act and the United States Private Securities Litigation Reform Act of 1995, as amended. Statements in this document that are not historical facts, including statements about Stagwell's beliefs and expectations and recent business and economic trends, constitute forward-looking statements. Words such as "estimate," "project," "target," "predict," "believe," "expect," "anticipate," "potential," "create," "intend," "could," "should," "would," "may," "foresee," "plan," "will," "guidance," "look," "outlook," "future," "assume," "forecast," "focus," "continue," or the negative of such terms or other variations thereof and terms of similar substance used in connection with any discussion of current plans, estimates and projections are subject to change based on a number of factors. Such forward-looking statements may include, but are not limited to, statements related to future financial performance and the future prospects of the business and operations of Stagwell. A number of important factors could cause actual results to differ materially from those contained in any forward-looking statement, including the risks identified in our filings with the Securities Exchange Commission (the "SEC").

These forward-looking statements are subject to various risks and uncertainties, many of which are outside Stagwell's control. Important factors that could cause actual results and expectations to differ materially from those indicated by such forward-looking statements include, without limitation, the risks and uncertainties set forth under the caption "Risk Factors" in Stagwell's Annual Report on Form 10-K for the year-ended December 31, 2020 under Item 1A and under the caption "Risk Factors" in Stagwell's Quarterly Report on Form 10-Q for the quarter-ended June 30, 2021 under Item 1A. Unless required by law, Stagwell undertakes no obligation to publicly update or revise any forward-looking statements to reflect circumstances or events after the date they are made.

 

 

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SOURCE Stagwell Inc.

FAQ

What is the amount Stagwell Inc. raised in their recent senior notes issuance?

Stagwell Inc. raised $1.0 billion in their recent senior notes issuance.

What percentage are the senior unsecured notes issued by Stagwell Inc.?

The senior unsecured notes issued by Stagwell Inc. have a fixed interest rate of 5.625%.

What will Stagwell Inc. do with the proceeds from the senior notes offering?

Proceeds from the senior notes offering will be used to redeem existing higher-interest notes and reduce credit facility borrowings.

When were the senior notes issued by Stagwell Inc.?

The senior notes were issued on August 20, 2021.

Which company is behind the recent senior notes offering?

The senior notes offering was conducted by Stagwell Inc.'s subsidiary, Midas OpCo Holdings LLC.