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MGI > SEC Filings for MGI > Form 8-K on 3-Apr-2014All Recent SEC Filings




Entry into a Material Definitive Agreement, Creation of a Direct Fina

Item 1.01 Entry into a Material Definitive Agreement.

On April 2, 2014, MoneyGram International, Inc., a Delaware corporation (the "Company"), as borrower, MoneyGram Payment Systems Worldwide, Inc., a Delaware corporation, MoneyGram Payment Systems, Inc., a Delaware corporation, and MoneyGram of New York LLC, a Delaware limited liability company, entered into that certain First Incremental Amendment and Joinder Agreement (the "Incremental Amendment") with Bank of America, N.A., as administrative agent (the "Administrative Agent"), and the financial institutions party thereto as Lenders, including those financial institutions identified therein as Tranche B-1 Lenders (the "Tranche B-1 Lenders") and as New Revolving Lenders. The Incremental Amendment provides for (a) an incremental term loan facility in an aggregate principal amount up to $130 million (the "Tranche B-1 Term Loan Facility") to be made available to the Company by the Tranche B-1 Lenders under that certain Amended and Restated Credit Agreement dated as of March 28, 2013 among the Company, the Administrative Agent and the lenders party thereto (as amended, the "Credit Agreement"), (b) an increase in the aggregate revolving loan commitments under the Credit Agreement from $125 million to $150 million (the "Additional Revolving Credit Facility" and, collectively with the Tranche B-1 Term Loan Facility, the "Incremental Facilities") and (c) certain other amendments to the Credit Agreement including, without limitation, (i) amendments to certain of the conditions precedent with respect to incremental borrowings to allow for the Incremental Facilities, (ii) an increase in the maximum secured leverage ratio that the Company is required to comply with as of the last day of each fiscal quarter, and (iii) amendments to permit the Company to engage in share repurchases from affiliates of Thomas H. Lee Partners, L.P. and Goldman, Sachs & Co. in an amount up to $300 million. The Company borrowed the full $130 million under the Tranche B-1 Term Loan Facility on April 2, 2014, and such proceeds were used to fund a portion of the Share Repurchase described under Item 8.01 below.

The term loans under the Tranche B-1 Term Loan Facility were made with original issue discount, meaning that the Tranche B-1 Lenders funded 99.875% of the aggregate principal amount of the Tranche B-1 Term Loan Facility. The loans under the Incremental Facilities will bear interest, at the Company's election, at either the base rate or LIBOR, in each case plus a spread above the base rate or LIBOR rate, as applicable. The spread for base rate loans will be either 2.00% or 2.25% per annum and the spread for LIBOR loans will be either 3.00% or 3.25% per annum (in each case depending on, in the case of the Tranche B-1 Term Loan Facility, the Company's consolidated total leverage ratio at such time, and, in the case of the Additional Revolving Credit Facility, the Company's consolidated secured leverage ratio at such time). The LIBOR rate for the Tranche B-1 Term Loan Facility will at all times be deemed to be not less than 1.00%. These interest rate terms are identical to the applicable interest rates in place for the Company's existing term and revolving loans under the Credit Agreement. The Tranche B-1 Term Loan Facility will also have the same maturity date as the Company's existing term loans under the Credit Agreement, which is March 28, 2020 and the Additional Revolving Credit Facility will have the same maturity date as the Company's existing revolving loans under the Credit Agreement, which is March 28, 2018.

The Incremental Facilities will be deemed to have been made under the Credit Agreement such that all representations, warranties and covenants contained in the Credit Agreement and the related security documents will apply to the Incremental Facilities in all respects and the collateral pledged by the Company and certain of its subsidiaries to secure their respective obligations under the Credit Agreement will secure the Incremental Facilities on a pari passu basis.

Item 2.03 Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant.

The information set forth under Item 1.01 discussing the Incremental Amendment is incorporated herein by reference.

Item 8.01 Other Information.

On April 2, 2014, the previously announced underwritten offering (the "Offering") by affiliates and co-investors of Thomas H. Lee Partners, L.P. (the "THL Selling Stockholders") and affiliates of Goldman, Sachs & Co. (collectively with the THL Selling Stockholders, the "Selling Stockholders") of an aggregate of 9,200,000 shares of the Company's common stock closed. The shares sold in the Offering included shares purchased by the underwriters upon exercise in full of the option to acquire 1,200,000 shares of common stock from the Selling Stockholders. The Selling Stockholders received all of the proceeds from the Offering. Also on April 2, 2014, the Company completed the repurchase of 8,185,092 shares of common stock from the THL Selling Stockholders at a price of $16.25 per share pursuant to the terms of the Stock Repurchase Agreement, dated March 26, 2014, between the Company and the THL Selling Stockholders (the "Share Repurchase"). The Company funded the Share Repurchase with $130 million of the proceeds from its Tranche B-1 Term Loan Facility described under Item 1.01 above and cash (the "Financing"). The consummation of the Share Repurchase, the Financing and the Offering were all contingent upon each other.

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