S&P assigns B to MoneyGram notes

S&P said it assigned B issue and 3 recovery ratings to MoneyGram International's (MGI) planned $400 million of senior secured notes due 2030. The 3 recovery rating indicates meaningful (50%-70%; rounded estimate: 55%) recovery in a hypothetical default.

The rating is consistent with S&P’s other senior secured ratings for MGI.

The company intends to use the proceeds to partially finance Madison Dearborn Partners' acquisition of MGI. To complete the acquisition and refinance its debt, MGI plans to raise a $500 million term loan, $100 million in holdco senior notes due 2028, $300 million in holdco preferred equity and $740 million common equity.

The outlook is stable.

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