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MoneyGram enters agreement to allow optional redemptions of notes
By Jennifer Chiou
New York, Oct. 25 - MoneyGram International, Inc. entered into a consent agreement with holders of subsidiary MoneyGram Payment Systems Worldwide, Inc.'s 13¼% senior secured second-lien notes due 2018, giving the issuer the opportunity to make one or more optional redemptions of up to a total of 35% of the notes, according to an 8-K filing with the Securities and Exchange Commission.
The holders are affiliates of Goldman Sachs & Co.
The amendments also include a change to the definition of "qualified equity offering" in the indenture to refer to a primary or secondary public offering of equity in which Goldman or any of its affiliates participates as a selling stockholder and any subsequent primary or secondary public offerings, in each case for cash proceeds of at least $50 million, the filing stated.
The optional redemptions will be at a redemption price equal to 113.25% of the then-outstanding principal amount, plus accrued interest, at any time prior to March 25 and after a qualified equity offering.
The changes also allow MoneyGram and its subsidiaries increased flexibility in intercompany transactions, including intercompany loans, asset transfers and investments, while also increasing the size of the general basket for investments to $50 million from $25 million.
The amendments increase as well the aggregate amount of debt defaults or final judgments that will constitute an event of default under the indenture to $25 million from $15 million.
Deutsche Bank Trust Co. Americas is the trustee and collateral agent.
MoneyGram is a Dallas-based payment services company.
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