MoneyGram buyout financing to include $400 million of secured debt

By Paul A. Harris

Portland, Ore., May 10 – Debt financing for the buyout of MoneyGram International Inc. by Madison Dearborn Partners is set to include $400 million of first-lien secured debt, according to a market source.

The debt financing also includes a $500 million first-lien term loan B, set to launch on a Thursday lender call via left arranger Goldman Sachs and joint arrangers Barclays, Deutsche Bank and Wells Fargo.

Proceeds will be used to help fund the buyout for $11.00 per share in an all-cash transaction valued at about $1.8 billion.

The company has previously disclosed in filings with the Securities and Exchange Commission that it had a commitment for a $150 million revolving credit facility and $900 million of secured financing for the transaction.

Closing on the buyout is expected on or before June 1.

MoneyGram is a Dallas-based digital P2P payments company.

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