MoneyGram launches $390 million term loan at Libor plus 350 bps

By Sara Rosenberg

New York, April 1 - MoneyGram International Inc. launched on Friday a $390 million term loan with price talk of Libor plus 350 basis points with a 1.25% Libor floor and an original issue discount of 991/2, according to a market source.

The term loan includes 101 soft call protection for one year, the source said.

The company's $540 million senior secured credit facility (Ba1/BB-) also provides for a $150 million revolver.

Bank of America Merrill Lynch, J.P. Morgan Securities LLC, Citigroup Global Markets Inc., Deutsche Bank Securities Inc. and Wells Fargo Securities LLC are the lead banks on the deal.

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 preferreds into common stock, and Goldman Sachs will convert all of its series B-1 preferreds 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 preferreds 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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