By Devika Patel
Knoxville, Tenn., March 28 - MoneyGram International, Inc. raised $760 million in a private placement of preferred stock, according to an 8-K filed Friday with the Securities and Exchange Commission. The deal priced on March 17 and settled March 25.
The company sold 495,000 shares of series B participating convertible preferred stock and 265,000 shares of series B-1 participating convertible preferred stock to affiliates of Thomas H. Lee Partners, L.P. and affiliates of Goldman, Sachs & Co.
The issued shares will initially be convertible into about 79% of the common equity of MoneyGram, and the percentage will increase if the company elects to accrue dividends in lieu of paying cash dividends.
The series B preferred stock is convertible into common shares at an initial conversion price of $2.50 per share and the series B-1 preferred stock is convertible into shares of series D participating convertible preferred stock.
MoneyGram is a Minneapolis-based provider of payment services.
| Issuer: | MoneyGram International, Inc.
|
| Issue: | Series B participating convertible preferred stock, series B-1 participating convertible preferred stock
|
| Amount: | $760 million
|
| Warrants: | No
|
| Pricing date: | March 17
|
| Settlement date: | March 25
|
| Stock symbol: | NYSE: MGI
|
| Stock price: | $1.94 at close March 17
|
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