MoneyGram $400 million secured notes backing Madison Dearborn buyout whispered in 10½% area

By Paul A. Harris

Portland, Ore., May 11 – An expected $400 million tranche of first-lien secured notes backing the buyout of MoneyGram International Inc. by Madison Dearborn Partners was discussed in a yield context in the 10½% area on Thursday, according to a sellside source.

Timing of the bond deal and structural details had not yet been circulated heading into the close, the source said.

Goldman Sachs & Co. LLC will lead the deal.

Meanwhile a $500 million first-lien term loan B (B2/B/B+) launched on Thursday with a 550 basis points spread to SOFR at 92. Goldman Sachs, Barclays, Deutsche Bank and Wells Fargo are arranging the loan.

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.

MoneyGram disclosed in filings with the Securities and Exchange Commission that it had a commitment for a $150 million revolver and $900 million of secured financing for the transaction.

The buyout is set to close on or before June 1.

MoneyGram is a Dallas-based digital P2P payments company.

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