MoneyGram International, Inc. (NYSE:MGI) today announced that it has
successfully completed the transaction with an investment group (the "Investors”)
led by Thomas H. Lee Partners, L.P. (THL) and Goldman, Sachs & Co.
(Goldman Sachs), to provide for a comprehensive recapitalization of the
Company. Components of the recapitalization include the following:
The Investors, which include affiliates of THL and affiliates of
Goldman Sachs, have purchased $760 million of Series B and Series B-1
Preferred Stock, convertible into 79% of the common equity of the
Company at an initial conversion price of $2.50 per share.
The Company has also received $500 million in debt financing from
affiliates of Goldman Sachs.
The Company has obtained an additional $250 million in senior debt
financing and following completion of the transaction, has $100
million of revolving credit available under its previously existing
$350 million credit agreement, which has been modified to provide for
an extended term.
Philip W. Milne, President and Chief Executive Officer of MoneyGram,
stated, "With the completion of this important
transaction, MoneyGram now has the financial resources to support our
customers and their growth plans. I want to thank our dedicated
employees as well as our customers and agents for their confidence in
MoneyGram during this difficult period.”
Mr. Milne continued, "The extension of our
agreements with Wal-Mart Stores, Inc. and ACE Cash Express are very
important developments for MoneyGram, underscoring the tremendous work
of our team members to provide outstanding customer service and support.
Our money transfer business continues to enjoy excellent growth and last
month we surpassed a significant milestone by adding our 150,000th
agent location. Through our recently launched global branding and
bilingual national advertising campaign, we continue to invest in our
brand to deliver growth into the future.”
Also as a result of the completed transaction, the investors have
appointed Scott L. Jaeckel and Seth W. Lawry, principals of THL, as
members of the Company’s Board of Directors.
Jess Hay, Albert M. Teplin and Othon Ruiz-Montemayor will continue as
members of the Board, as will Mr. Milne, the Company’s
Chairman and Chief Executive Officer. Upon receipt of regulatory
approval, THL is expected to appoint a majority of the Company's Board
of Directors.
About MoneyGram International, Inc.
MoneyGram International, Inc. is a leading global payment services
company. The company’s major products and
services include global money transfers, money orders and payment
processing solutions for financial institutions and retail customers.
MoneyGram is a New York Stock Exchange listed company with approximately
150,000 global money transfer agent locations in 180 countries and
territories. For more information, visit the company’s
website at www.moneygram.com.
Forward Looking Statements
The statements contained in this press release regarding MoneyGram
International, Inc. that are not historical facts are forward-looking
statements and are made under the Safe Harbor provisions of the Private
Securities Litigation Reform Act of 1995. These statements are based on
management's current expectations and are subject to uncertainty and
changes in circumstances due to a number of factors, including, but not
limited to: (a) our ability to satisfy our substantial dividend and debt
service obligations, as well as covenant requirements in our new debt
agreements; (b) our ability to obtain new material retail agent customer
contracts and retain business from our existing significant agents and
customers; (c) our ability to operate our Payment Systems segment
profitably pursuant to our new official check strategy and portfolio
realignment; (d) risks related to stockholder lawsuits and other
litigation and governmental investigations of us or our agents which
could result in material settlements, fines or penalties; (e) our
ability to maintain existing or establish new banking relationships
including our clearing bank relationships; (f) our ability to continue
to compete effectively; (g) our ability to retain and attract key
employees; (h) our ability to maintain sufficient capital and assets in
order to pursue our growth strategy and fund key strategic initiatives,
such as product development and acquisitions; (i) our ability to
successfully and timely implement new or enhanced technology and
infrastructure, delivery, methods and product and service offerings and
to successfully scale our technology to match our growth; (j) our
ability to manage credit and fraud risks risk related to our agents and
third parties; (k) our ability to secure or enforce intellectual
property protection and successfully defend against an intellectual
property infringement action; (l) our ability and that of our agents to
comply with the laws and regulations in the U.S. and abroad; (m)
conducting money transfers in regions that are politically volatile
and/or in a limited number of cases, subject to certain OFAC
restrictions; (n) our ability to manage security risks related to our
electronic processing and transmission of confidential customer
information; (o) our ability to process and settle transactions
accurately and efficiently without interruption of our network; (p) our
ability to manage reputational damage to our brand due to the events
leading to the recapitalization; (q) ability to manage risks related to
opening of new retail locations and acquisition of businesses; (r)
material slowdown or complete disruption in international migration
patterns; (s) ability to maintain effective internal controls; (t) our
significant recapitalization expenses and related expenses; (u) other
factors more fully discussed in our filings with the Securities and
Exchange Commission.
Actual results may differ materially from historical and anticipated
results. These forward-looking statements speak only as of the date on
which such statements are made, and MoneyGram undertakes no obligation
to update such statements to reflect events or circumstances arising
after such date.
Bookmarken
