S&P rates MoneyGram loan CCC+

S&P said it assigned a CCC+ debt rating on MoneyGram International's proposed $245 million senior secured second-lien term facility.

The recovery rating of 6 indicates an expected of no recovery in a default.

This transaction is leverage neutral and does not affect the issuer credit rating on MoneyGram and senior secured first-lien term loan rating of B, S&P noted.

The proceeds, together with available working capital, will be used to prepay $245 million of debt outstanding under the first-lien term facility, S&P said.

The second-lien facility will bear interest of 13% per year, a portion of which would be payable in kind at the company's option, the agency said.

Of the $245 million second-lien facility, BPC Lending I LLC, an affiliate of Beach Point Capital Management, will provide $200 million.

The Carlyle Group, or an affiliate, will be participating in a portion of the second-lien facility, S&P said.

The closing of the second-lien facility is contingent on MoneyGram refinancing or extending the maturity date of its existing senior secured revolving credit facility and senior secured first-lien term loan facility due 2020, the agency said.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.