MoneyGram 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 refinancing.
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 unpaid interest.
“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 bookrunners.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 visit moneygram.com or connect with us on Facebook.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV