MoneyGram plans $150 million term loan for second-lien notes buyback

By Sara Rosenberg

New York, Nov. 14 - MoneyGram International Inc. intends to get an up to $150 million incremental term loan under its existing credit facility, according to a 424B3 filed with the Securities and Exchange Commission on Monday.

The filing listed Bank of America Merrill Lynch, Morgan Stanley & Co. LLC, J.P. Morgan Securities LLC and Wells Fargo Securities LLC as the leads on the new debt.

Proceeds, along with cash on hand, will be used to fund the partial redemption of the company's 13¼% senior secured second-lien notes due 2018 held by affiliates of Goldman Sachs & Co.

The redemption will be made for a total principal amount of $175 million of notes and will be at a redemption price equal to 113.25%.

Closing of the new term loan is conditioned on the closing of a proposed recapitalization.

MoneyGram is a Dallas-based payment services company.

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