MoneyGram announces completion of $945 million refinancing

By Wendy Van Sickle

Columbus, Ohio, June 26 – MoneyGram International Inc. said it entered into new first-lien credit agreement and a new second-lien credit agreement, each with Bank of America, NA as administrative agent, for a total of $945 million, according to a news release.

In addition to the previously reported four-year $645 million first lien term loan, the refinancing included a three-year $35 million first-lien revolver and a five-year $245 million second-lien term loan.

The revolver, which may be used for revolving credit, swingline loans and letters of credit, bears interest at Libor plus 575 basis points or 600 bps, depending on the leverage ratio.

It matures on Sept. 30, 2022.

Pricing on the first-lien term loan is Libor plus 600 bps with a 1% Libor floor and an original issue discount of 98.5, as previously reported.

The second-lien term loan has an annual interest rate of 13%, a portion of which would be payable in kind at the company’s option, as well as provide for customary fees and an original issue discount.

The company issued warrants to the second-lien term lenders exercisable under certain conditions for a total of 5,423,470 shares of MoneyGram's common stock representing about 8% of the fully diluted then-outstanding common stock of the company.

MoneyGram is a Dallas-based money transfer company.

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