MDC Partners announces early redemption of C$45 million convertible
debentures

NEW YORK, Oct. 27 /CNW/ - MDC announced today this it has delivered formal notice to redeem all of its 8.00% convertible unsecured subordinate debentures (the "Debentures"). Currently, there are C$45 million principal amount of Debentures outstanding, and the originally scheduled maturity date was June 30, 2010. The Debentures will be redeemed effective on November 26, 2009. The redemption amount will be equal to the current principal amount plus accrued interest as of the redemption date. Interest on the Debentures shall cease to be payable from and after the redemption date.

"The early redemption of our Debentures for cash marks the final step in our balance sheet refinancing, which began last week with the closing of a US$300 million debt refinancing including a US$225 million 7-year senior notes offering and a new US$75 million 5-year revolving credit facility," said Miles Nadal, Chairman and Chief Executive Officer. "The Debentures will be repaid fully in cash, fulfilling a commitment we made at the beginning of this year and eliminating potential dilution to our share base."

The redemption price will be payable upon presentation and surrender of the Debentures called for redemption at the following corporate trust office:

    
    Computershare Trust Company of Canada
    100 University Avenue
    9th Floor
    Toronto, Ontario
    M5J 2Y1
    Attention: Manager, Corporate Trust
    

Pursuant to the Indenture for the Debentures, a holder of a Debenture has the right, at such holder's option, at any time prior to 5 p.m. Toronto time on November 25, 2009, to convert the whole or, in the case of a Debenture of a denomination in excess of C$1,000, any part of which is C$1,000 or an integral multiple thereof, of the principal amount of such Debenture into shares at a conversion price equal to C$14.00, such that approximately 71.4286 Shares shall be issued for each C$1,000 principal amount of Debentures so converted. Holders converting their Debentures shall be entitled to receive, in addition to the applicable number of shares, accrued and unpaid interest in respect thereof for the period up to but excluding the date of conversion from the day immediately following the latest interest payment date, all in accordance with the Indenture.

About MDC Partners Inc.

MDC Partners is a progressive Marketing and Communications Network, championing the most innovative entrepreneurial talent. MDC Partners provides strategic solutions and services to multinational clients in North America, Europe and Latin America. Our philosophy emphasizes the utilization of Strategy and High Value Creativity to drive growth and measurable impact for our clients. "MDC Partners is The Place Where Great Talent Lives." The company's Class A shares are publicly traded on the NASDAQ under the symbol "MDCA" and on the Toronto Stock Exchange under the symbol "MDZ.A".

This press release contains forward-looking statements within the meaning of section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Such forward-looking statements involve risks and uncertainties which may cause the actual results or objectives to be materially different from those expressed or implied by such forward-looking statements. Such factors include, among other things, the Company's financial performance; changes in the competitive environment; adverse changes in the economy; ability to maintain long-term relationships with customers; financing requirements; and other factors set forth in the Company's Form 10-K for its fiscal year ended December 31, 2008 and subsequent SEC filings.

SOURCE MDC Partners Inc.

For further information: For further information: Donna Granato, VP, Finance & Corporate Development, (646) 429-1809, dgranato@mdc-partners.com


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