S&P gives MoneyGram loan B

S&P said it assigned a B rating to MoneyGram International Inc.’s planned $500 million term loan to partially finance Madison Dearborn Partners' (MDP) acquisition of MGI. The agency also affirmed the B issuer rating.

MDP plans to finance the buyout through the $500 million term loan B due 2030, $400 million of other secured debt, $100 million Holdco senior notes due 2028, $300 million Holdco preferred equity, and $740 million common equity. The planned first-lien debt agreement also includes a $150 million undrawn revolving credit facility due 2028. Upon closing, MGI's outstanding term loan and senior secured notes, with $379 million and $415 million outstanding balances as of March 31, respectively, will be retired.

Once the deal closes, MGI will be a financial sponsor-controlled company with leverage above 5x.

The outlook is stable.

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