MoneyGram plans $1.3 billion of debt financing for buyout

By Sara Rosenberg

New York, Feb. 16 – MoneyGram International Inc. plans on getting $800 million of senior secured credit facilities and a $500 million private placement of a junior financing to help fund its acquisition by Madison Dearborn Partners LLC, according to an 8-K filed with the Securities and Exchange Commission on Tuesday.

Goldman Sachs Bank USA, Deutsche Bank Securities Inc. and Barclays provided the debt commitment.

The credit facilities consist of a $100 million revolver and a $700 million first-lien term loan.

The junior financing is backed by a commitment for a $500 million unsecured senior bridge loan.

Other funds for the transaction will come from $810 million of equity.

Under the agreement, MoneyGram is being bought for $11.00 per share in an all-cash transaction valued at about $1.8 billion.

As of Dec. 31, the company had $799 million of outstanding debt, all of which will be refinanced in connection with the buyout.

Closing is expected in the fourth quarter, subject to customary closing conditions, including approval by MoneyGram shareholders and receipt of regulatory approvals.

There is a “go-shop” period expiring on March 16.

MoneyGram is a Dallas-based digital P2P payments company.

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