MoneyGram Announces Pricing of Private Offering of $415 Million of Senior Secured Notes

Rhea-AI Summary

MoneyGram International, Inc. (NASDAQ: MGI) announced the pricing of a private offering of $415 million in 5.375% senior secured notes due 2026. The offering is set to close on July 21, 2021, subject to customary conditions. These notes will be secured by all assets of the company and certain subsidiaries. Interest will accrue at a rate of 5.375% per annum, payable semi-annually starting February 1, 2022. The offering is targeted at qualified institutional buyers under Rule 144A and will not be registered under the Securities Act.

Positive

• Offering size of $415 million could strengthen the company's financial position.
• Interest rate of 5.375% is competitive for secured debt.

Negative

• Potential dilution risk for existing shareholders due to the nature of the offering.
• There is no assurance that the notes offering or new credit agreement will close as planned.

DALLAS, July 14, 2021 /PRNewswire/ -- MoneyGram International, Inc. (NASDAQ: MGI) ("MoneyGram" or the "Company") today announced the pricing of its previously announced private offering of $415 million aggregate principal amount of 5.375% senior secured notes due 2026 (the "notes") and related guarantees. The offering is expected to close on July 21, 2021, subject to customary closing conditions.

The notes will be unconditionally guaranteed, jointly and severally, on a senior secured basis (collectively, the "guarantees"), initially by the Company's subsidiaries that guarantee borrowings under the its contemplated new $400 million secured credit facility (the "New Credit Agreement"), which it expects to enter into substantially concurrently with the closing of the notes offering, and by certain future wholly owned domestic subsidiaries (the "guarantors"). The notes will be secured, on an equal and ratable, first-priority basis with obligations under our New Credit Agreement by liens on substantially all of the assets of the Company and the guarantors, subject to certain exceptions and intercreditor arrangements. There is no assurance that the Company will be able to consummate the notes offering or enter into the New Credit Agreement simultaneously with the issuance of the notes or at all.

The notes will mature on August 1, 2026. Interest on the notes will accrue at a rate of 5.375% per annum and will be payable semi-annually in arrears on February 1 and August 1 of each year, commencing on February 1, 2022, unless earlier redeemed or repurchased in accordance with their terms.

The notes and related guarantees are being offered only to persons reasonably believed to be qualified institutional buyers in accordance with Rule 144A under the Securities Act of 1933, as amended (the "Securities Act"), and outside the United States to certain non-U.S. persons in compliance with Regulation S under the Securities Act. The issuance and sale of the notes and related guarantees have not been, and will not be, registered under the Securities Act or the securities laws of any state or other jurisdiction, and the notes and related guarantees may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of the Securities Act and other applicable securities laws.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy the notes and related guarantees. Offers of the notes and related guarantees may only be made by means of a private offering memorandum, and may not be made to any person in any jurisdiction in which such offer, sale or solicitation is unlawful.

About MoneyGram International, Inc.

MoneyGram is leading the evolution of digital P2P payments. With a purpose-driven strategy to mobilize the movement of money, a strong culture of fintech innovation, and leading customer-centric capabilities, MoneyGram has grown to serve nearly 150 million people across the globe over the last five years.

The Company leverages its modern, mobile, and API-driven platform and collaborates with the world's leading brands to serve consumers through MGO, its direct-to-consumer digital business, its global retail network and its emerging embedded finance business for enterprise customers, MoneyGram as a Service.

For more information, please visit ir.moneygram.com and follow @MoneyGram.

Forward Looking Statements

This communication contains forward-looking statements which are protected as forward-looking statements under the Private Securities Litigation Reform Act of 1995 that are not limited to historical facts, but reflect the Company's current beliefs, expectations or intentions regarding future events and speak only as of the date they are made. Words such as "may," "might," "will," "could," "should," "would," "expect," "plan," "project," "intend," "anticipate," "believe," "estimate," "predict," "potential," "pursuant," "target," "forecast," "outlook," "continue," "currently," and similar expressions are intended to identify such forward-looking statements. The statements in this communication that are not historical statements are forward-looking statements within the meaning of the federal securities laws. Specific forward-looking statements include, among others, statements regarding the expected use of proceeds from the offering, the anticipated closing of the notes offering and the anticipated entry into the New Credit Agreement. Forward-looking statements are subject to numerous risks and uncertainties that are difficult to predict and many of which are beyond the Company's control, which could cause actual results to differ materially from the results expressed or implied by the statements.

Additional information concerning factors that could cause actual results to differ materially from those in the forward-looking statements is contained from time to time in the Company's filings with the Securities and Exchange Commission (the "SEC"). The Company's SEC filings may be obtained by contacting the Company, through the Company's web site at ir.moneygram.com or through the SEC's Electronic Data Gathering and Analysis Retrieval System at www.sec.gov. The Company undertakes no obligation to publicly update or revise any forward-looking statement.

Media Contact
Stephen Reiff
media@moneygram.com

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SOURCE MoneyGram

FAQ

What is the size of MoneyGram's recent offering?

MoneyGram's recent offering is sized at $415 million.

What is the interest rate on MoneyGram's senior secured notes?

The interest rate on MoneyGram's senior secured notes is 5.375% per annum.

When is the closing date for MoneyGram's notes offering?

The closing date for MoneyGram's notes offering is expected on July 21, 2021.

Who can purchase the notes from MoneyGram's offering?

The notes are being offered only to qualified institutional buyers under Rule 144A.

What risks are associated with MoneyGram's notes offering?

There is a risk of potential dilution for existing shareholders and no assurance that the offering will complete as planned.