MoneyGram yanks discount on $850 million term loan, now talked at par

By Paul A. Harris

Portland, Ore., March 26 - MoneyGram International Inc. eliminated a contemplated discount on its $850 million seven-year covenant-light term loan B on Tuesday, according to a market source.

Talk on the Libor plus 325 basis points deal, which comes with a 1% Libor floor, was hiked to par.

Previous talk had the deal coming at an original issue discount of 99 to 991/2.

The loan has 101 soft call protection for one year, the source said.

In addition to the term loan B, the company's $975 million credit facility (B1/BB-) includes a $125 million five-year revolver, the source continued.

The revolver has maximum leverage, minimum interest coverage and minimum liquidity covenants.

Bank of America Merrill Lynch, Wells Fargo Securities LLC, J.P. Morgan Securities LLC, Deutsche Bank Securities Inc. and Credit Agricole Securities (USA) Inc. are the lead banks on the deal.

Proceeds will be used to refinance 13¼% second-lien notes due 2018 and existing term loans.

MoneyGram is a Dallas-based provider of money transfer and payment services.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.