MoneyGram reduces revolver commitments, amends financial covenants

By Sarah Lizee

Olympia, Wash., Feb. 1 – MoneyGram International, Inc. amended and restated its credit agreement on Thursday with Bank of America, NA as administrative agent to decrease the total revolving credit commitments to $45 million from $85.8 million, according to an 8-K filing with the Securities and Exchange Commission.

The amendment also increases the maximum secured leverage ratio for the fourth quarter of 2018 to 4 to 1 from 3.75 to 1, for the first quarter of 2019 to 4.25 to 1 from 3.5 to 1 and for the second quarter of 2019 to 4.5 to 1 from 3.5 to 1.

Additionally, the amendment tightens some negative covenant baskets for the benefit of the revolving lenders only when the pro forma secured leverage ratio of the company is greater than 3.75 to 1.

The amendment also provides that in the event the company’s cash balance exceeds $140 million at the end of any month, the company would be required to use such excess cash to pay any outstanding obligations to the revolving lenders, and that the company may not draw on the revolver provided for under the agreement to the extent that the company would have a cash balance in excess of $140 million after giving effect to that borrowing.

As of Thursday, the revolver remains undrawn.

MoneyGram is a Dallas-based money transfer company.

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