MoneyGram secures consents to lower threshold on U.S. investments

By Susanna Moon

Chicago, Aug. 17 - MoneyGram International, Inc. and its subsidiary MoneyGram Payment Systems Worldwide, Inc. entered into a consent agreement on Aug. 12 with holders of Worldwide's 13¼% senior secured second-lien notes due 2018, according to an 8-K filing with the Securities and Exchange Commission.

The holders are affiliates of Goldman, Sachs & Co.

Under the agreement, MoneyGram entered into a supplemental indenture to amend the definition of 'highly rated investments' to include securities issued by any U.S. agency or government-sponsored enterprise that are rated Aa3 or better by Moody's Investors Service, Inc. and AA- or better by Standard & Poor's.

The threshold previously stood at ratings of Aaa by Moody's and AAA by S&P.

This means that the amended definition confirms that securities issued by U.S. agencies or government-sponsored enterprises continue to qualify as highly rated investments despite S&P's recent downgrade of the United States government to AA+ from AAA.

Deutsche Bank Trust Co. Americas ,is trustee and collateral agent.

MoneyGram is a Dallas-based payment services company.

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