MoneyGram trims term loan B to $400 million, revises OID to 83

By Sara Rosenberg

New York, May 31 – MoneyGram International Inc. downsized its seven-year first-lien term loan B (B2/B/B+) to $400 million from a revised amount of $450 million and an initial size of $500 million, according to a market source.

In addition, the original issue discount on the term loan widened to 83 from 92 and some changes were made to documentation, the source said.

Pricing on the term loan remained at SOFR plus 550 basis points with a 0.5% floor.

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

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

Proceeds will be used with $500 million of senior secured notes, upsized from a revised amount of $450 million and an initial size of $400 million, and cash and equity contributions to 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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