New credit facility reduces interest expense and extends maturities
DALLAS -- (Business Wire)
International, Inc. (NYSE:MGI), a leading global payment services
company, today announced that on March 28, 2013 it completed a private
placement of a new $975 million senior secured credit facility
consisting of a $125 million, multi-bank five-year revolving credit
facility and an $850 million, seven-year term loan. The new term loan
initially bears interest at LIBOR, subject to a floor of 1.0%, plus
3.25%, with a step down to LIBOR plus 3.00% upon achievement of a
specified leverage ratio. MoneyGram expects to realize annual cash
interest savings of approximately $28 million as a result of the
The net proceeds from the new term loan were used to repay in full the
company's existing first lien credit facility and second lien notes. The
company repaid its $485 million of existing first lien notes due in 2017
at par. The company also purchased and retired all $325 million of its
outstanding 13.25% Senior Secured Second Lien Notes due in 2018 held by
affiliates of Goldman, Sachs & Co. The purchase price for the second
lien notes was 106.625% of the outstanding principal, plus accrued and
“The completion of our debt refinancing represents a true milestone in
the turn-around of MoneyGram. Our new term loan expands our first lien
facility under favorable terms, extends maturities into 2020 and
substantially reduces our interest expense. The successful placement of
the new credit facility reflects the tremendous progress the company has
made since the re-capitalization in 2008," said Pamela H. Patsley,
MoneyGram's chairman and chief executive officer.
Bank of America Merrill Lynch and Wells Fargo Securities served as joint
lead arrangers and J.P. Morgan Securities, Deutsche Bank Securities and
Credit Agricole Corporate and Investment Bank served as joint
About MoneyGram International
MoneyGram International, a leading money transfer company, enables
consumers who are not fully served by traditional financial institutions
to meet their financial needs. MoneyGram offers bill payment services in
the United States and Canada and money transfer services worldwide
through a global network of more than 310,000 agent locations –
including retailers, international post offices and financial
institutions – in 197 countries and territories. To learn more about
money transfer or bill payment at an agent location or online, please
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MoneyGram International, Inc.
Source: MoneyGram International, Inc.
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