MoneyGram launches $500 million term loan B at SOFR plus 550 bps

By Sara Rosenberg

New York, May 11 – MoneyGram International Inc. launched on Thursday its $500 million seven-year first-lien term loan B (B2/B/B+) with price talk of SOFR plus 550 basis points with a 0.5% floor and an original issue discount of 92, according to a market source.

The term loan has 101 soft call protection for one year, no CSA and amortization of 1% per annum, the source said.

Goldman Sachs Bank USA, Barclays, Deutsche Bank Securities Inc. and Wells Fargo Securities LLC are the lead arrangers on the deal.

Commitments are due on May 23, the source added.

Proceeds will be used with $400 million of other first-lien secured debt to help fund the buyout of the company by Madison Dearborn Partners LLC for $11.00 per share in an all-cash transaction valued at about $1.8 billion.

Closing on the buyout is expected on or before June 1.

MoneyGram is a Dallas-based digital P2P payments company.

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