S&P rates MoneyGram loan B

S&P said it assigned its B issue rating on MoneyGram International's (B/stable/--) new first-lien credit agreement. The recovery rating of 3 indicates an expectation of a meaningful recovery (60%) recovery in the event of default.

The company has refinanced about $900 million of a senior secured credit facility due 2020 with its new first-lien credit agreement and a new second-lien credit agreement, each with Bank of America NA acting as an administrative agent.

The new agreements provide for a $35 million first-lien revolving credit facility due September 2022, $645 million first-lien term loan due June 2023 and $245 million second-lien term loan (rated CCC+) due June 2024.

“In our view, this transaction is leverage neutral and does not affect our issuer credit rating on MoneyGram,” S&P said in a news release.

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