MoneyGram International closed its previously announced private offering of $415 million aggregate principal amount of 5.375% senior secured notes due 2026 and related guarantees. Concurrent with the closing of the offering, MoneyGram closed a new $400 million senior secured term loan and a new undrawn revolving facility of $32.5 million, both pursuant to a new credit agreement, dated as of July 21, 2021, with Bank of America as administrative agent.
MoneyGram used the net proceeds from the offering and the closing of the term loan to prepay the full amount of first lien and second lien indebtedness under its existing senior secured credit facilities and to pay related accrued interest, fees and expenses.
The notes are unconditionally guaranteed, jointly and severally, on a senior secured basis initially by the company’s subsidiaries that guarantee borrowings under the new credit agreement, and by certain future wholly-owned domestic subsidiaries. The notes are secured on an equal and ratable first-priority basis with obligations under the new credit agreement by liens on substantially all of the assets of MoneyGram and the guarantors, subject to certain exceptions and intercreditor arrangements.
