MoneyGram launches $150 million term loan B-1 at discount of 98

By Sara Rosenberg

New York, Nov. 17 - MoneyGram International Inc. launched its $150 million incremental term loan B-1 on Thursday to existing lenders at an original issue discount of 98, according to a market source.

Pricing on the B-1 loan is Libor plus 325 basis points with a 1.25% Libor floor, in line with existing term loan pricing. And, like the existing loan, there is a step-down to Libor plus 300 bps based on leverage.

Also, the term loan B-1 will mature on Nov. 18, 2017, as does the existing term loan.

There is 101 soft call protection for one year.

Bank of America Merrill Lynch, Morgan Stanley & Co. LLC, J.P. Morgan Securities LLC and Wells Fargo Securities LLC are the leads on the new debt, with Bank of America the administrative agent.

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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