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MoneyGram, investment group complete recapitalization
By Lisa Kerner
Charlotte, N.C., March 25 - MoneyGram International, Inc. completed its comprehensive recapitalization with an investment group led by Thomas H. Lee Partners, LP and Goldman, Sachs & Co., according to a company news release.
On Feb. 12, MoneyGram announced a debt financing package for its recapitalization by the investment group that included a new $200 million term loan B and up to $500 million of senior second-lien notes.
It was previously reported that under the terms of the agreement, amended on March 17, the investors will purchase $760 million of series B and series B-1 preferred stock, which will initially be convertible into approximately 79% of the common equity of MoneyGram.
MoneyGram obtained an additional $250 million in senior debt financing from Goldman Sachs.
The company has $100 million of revolving credit available under its previously existing $350 million credit agreement, modified for an extended term, the company said.
"With the completion of this important transaction, MoneyGram now has the financial resources to support our customers and their growth plans," president and chief executive officer Philip W. Milne said in the release.
The investors have appointed Thomas H. Lee Partners principals Scott L. Jaeckel and Seth W. Lawry as members of MoneyGram's board of directors. Milne, Jess Hay, Albert M. Teplin and Othon Ruiz-Montemayor will continue as members of the board.
It was previously reported that under the recapitalization, Thomas H. Lee Partners and Goldman Sachs will make an equity investment of about $710 million, with a maximum amount of $775 million.
MoneyGram is a Minneapolis-based provider of payment services.
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