Daily News: February 5, 2019

BofA Agents $40.5MM Reduction to MoneyGram Revolver

Bank of America acted as the administrative agent on an amendment to money transfer and payment services provider MoneyGram International’s revolving credit facility, which is undrawn. The amendment reduced the total commitments to $45 million from $85.5 million.

The amendment also, among other things:

Increased the maximum under the secured leverage covenant for the fourth quarter of 2018 from 3.75:1 to 4.00:1, for the first quarter of 2019 from 3.50:1 to 4.25:1 and for the second quarter of 2019 from 3.50:1 to 4.50:1

Created a limitation on drawing under the revolver for the purpose of increasing the company’s cash position above $140 million

Tightened certain negative covenant baskets only when the company’s secured leverage covenant increases to greater than 3.75:1

Larry Angelilli, MoneyGram chief financial officer, commented, “We are extremely pleased with the flexibility and support from our bank group of Bank of America, Wells Fargo, Barclays and Credit Agricole. This amendment provides the company with sufficient borrowing capacity and flexibility as we execute on our strategy to improve our capital structure and return to growth.”

MoneyGram’s term loan remained unchanged by the amendment.