MoneyGram to commence buyout financing marketing period in 2023

By Sara Rosenberg

New York, Dec. 21 – MoneyGram International Inc. plans to commence the marketing period for financing for its acquisition by Madison Dearborn Partners LLC no sooner than Jan. 3, and it may last for as long as 15 consecutive business days, according to a news release.

The financing marketing period is expected to begin once the company receives the final international money transmission regulatory approval for the buyout.

In filings with the Securities and Exchange Commission, the company disclosed that it plans to get up to $850 million of senior secured credit facilities, split between an up to $150 million revolver and a $700 million first-lien term loan, and a $500 million private placement of a junior financing for its purchase by Madison Dearborn.

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

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

Based on a February filing, other funds for the transaction are expected to 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.

Closing on the buyout is expected early in the first quarter of 2023.

MoneyGram is a Dallas-based digital P2P payments company.

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