MoneyGram Recap Closes

Thomas H. Lee Partners and Goldman Sachs have completed their recapitalization of MoneyGram International Inc. (MGI). The deal included a $760 million investment in exchange for a 79% stake, while Goldman Sachs Company provided $500 million in debt financing.




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