MoneyGram proposed credit facility to be sized at $540 million

By Sara Rosenberg

New York, March 17 - MoneyGram International Inc.'s proposed senior secured credit facility is expected to be sized at $540 million, comprised of a $150 million revolver and a $390 million term loan, according to a PRE 14A filed with the Securities and Exchange Commission on Thursday.

Bank of America Merrill Lynch is the lead bank on the deal, which is being done on a best-efforts basis, and J.P. Morgan has committed to provide a portion of the revolver.

Proceeds will be used to help fund a recapitalization, including the repayment of roughly $140 million of outstanding bank debt and a $218 million payment inducement payment to Thomas H. Lee Partners and Goldman Sachs.

Under the recapitalization agreement, Thomas H. Lee will convert all of its series B preferred into common stock, and Goldman Sachs will convert all of its series B-1 preferred into shares of series D participating convertible preferred stock.

Thomas H. Lee will receive about 28.2 million additional shares of common stock and $140.8 million in cash, and Goldman Sachs will receive about 15,504 additional shares of Series D preferred and $77.5 million in cash as consideration for completing the recapitalization.

Closing is expected mid-year, subject to shareholder approval and completion of financing.

MoneyGram is a Dallas-based payment services company.

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