MoneyGram strengthens balance sheet, cuts debt by $ 100 million ahead of planned refinancing

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DALLAS, June 28, 2021 / PRNewswire / – MoneyGram International, Inc. (NASDAQ: MGI) (“MoneyGram” or the “Company”) Announces Prepaid $ 100 million the balance of the capital under its second ranking credit agreement, dated June 26, 2019, with Bank of America, NA, as administrative agent, party financial institutions as lenders, and other party agents. MoneyGram also paid a required amount $ 4 million prepayment call premium plus accrued interest to lenders for a total payment of $ 107 million. The Company used all $ 97.6 million the proceeds it raised through its recently completed â€œto marketâ€ equity offering program, as well as available liquidity.

â€œFollowing the successful execution of our equity offering, which we completed in less than two weeks, we are using the proceeds to reduce our costliest debt balance by $ 100 million. This debt reduction is an important milestone for MoneyGram and demonstrates our ability to improve our capital structure and reduce our funding costs, â€said Larry Angelilli, Chief Financial Officer of MoneyGram. â€œWith the continued growth of MoneyGram Online, along with momentum in many other areas of our money transfer business and the conclusion of the PAD, our company is entering a new era of improved cash flow and growth. . “

About MoneyGram International, Inc.

MoneyGram is at the forefront of the evolution of digital P2P payments. With a focused strategy to mobilize the money movement, a strong culture of fintech innovation, and cutting-edge customer-centric capabilities, MoneyGram has grown to serve nearly 150 million people around the world over the past years. last five years.

The company leverages its modern, mobile, API-based platform and works with the world’s leading brands to serve consumers through MGO, its direct-to-consumer digital business, global retail network and business. emerging integrated financing for corporate clients, MoneyGram as a service.

For more information, please visit ir.moneygram.com and follow @MoneyGram.

Forward-looking statements

This communication contains forward-looking statements which are protected as forward-looking statements under the Private Securities Litigation Reform Act of 1995, which are not limited to historical facts, but reflect MoneyGram’s current beliefs, expectations or intentions regarding events. future and only speak from the date of their manufacture. Words such as “may”, “could”, “will”, “could”, “should”, “should”, “expect”, “plan”, “plan”, “intend”, “Anticipate”, “believe,” “estimate”, “predict”, “potential”, “in application”, “objective”, “forecast”, “prospect”, “continue”, “currently” and similar expressions are intended to identify these forward-looking statements. Statements in this communication that are not historical statements are forward-looking statements within the meaning of federal securities laws. Specific forward-looking statements include, among other things, statements regarding the Company’s currently contemplated refinancing of the Senior Credit Agreement and the Senior Credit Agreement. Forward-looking statements are subject to many risks and uncertainties that are difficult to predict and many of which are beyond MoneyGram’s control, which could cause actual results to differ materially from the results expressed or implied by the statements.

These risks and uncertainties include, but are not limited to:

the impact of the COVID-19 pandemic or future pandemics on our business, including the potential for work stoppages, blockages, shelter-in-place guidelines or movement restrictions, service delays and decline in business activity and consumers;
our ability to compete effectively;
our ability to maintain key agent or billing relationships, or a reduction in the volume of business or transactions of such relationships, including with our largest agent, Walmart, through the introduction of money transfer products white label additional competitors or otherwise;
our ability to continue to develop our digital channel, in particular through our direct-to-consumer digital business, MoneyGram Online;
a breach of the security or confidentiality of the systems, networks or databases on which we rely;
current and proposed regulations regarding consumer privacy and data use and security;
our ability to manage the risk of consumer or agent fraud;
our ability to refinance or meet the terms and conditions of our credit facilities and on favorable terms or within the expected time frames;
the ability of ourselves and our agents to comply with US and international laws and regulations;
litigation and regulatory proceedings involving us or our agents and other business relationships, which could result in material settlements, fines or penalties, revocation of required licenses or registrations, termination of contracts, other administrative actions or prosecutions and negative publicity;
disruptions to our computer systems and data centers and our ability to effectively operate and adapt our technology;
the ability of ourselves and our agents to maintain adequate banking relationships;
our ability to successfully develop and introduce new and improved products and services in a timely manner and our investments in new products, services or infrastructure changes;
our high level of indebtedness and our material debt service obligations, the material requirements of covenants and our ability to comply with these requirements;
our lower investment grade credit rating;
our ability to maintain sufficient capital;
weak economic conditions, both in the US and global markets;
the financial health of certain European countries or the secession of a country from the European Union;
a significant change, significant slowdown or complete disruption of international migration patterns;
our ability to manage the risks associated with our international sales and operations, including exchange rates between currencies;
our offering of money transfer services through agents in politically volatile regions or, in a limited number of cases, which may be subject to certain restrictions by the Office of Foreign Assets Control of the US Department of the Treasury;
major bank failure or persistent illiquidity of financial markets, or illiquidity of our clearing, treasury management and custodial financial institutions;
changes in tax laws or adverse results from tax positions we take, or a failure on our part to establish adequate reserves for tax events;
our ability to manage the credit risks of our agents and clients of official check financial institutions;
our ability to adequately protect our brand and intellectual property rights and to avoid infringing the rights of others;
our ability to manage risks associated with operating retail locations and acquiring or starting a business;
any restructuring actions and cost reduction initiatives that we undertake may not produce the expected results and these actions may have a negative impact on our business;
our capital structure; and
the risks and uncertainties described in the Risk factors and Management report and analysis of the financial position and operating results sections of our annual report on Form 10-K for the year ended December 31, 2020 and our quarterly report on Form 10-Q for the quarter ended March 31, 2021, as well as any additional risk factors that may be described in our other documents filed with the SEC from time to time.

Additional information regarding factors that could cause actual results to differ materially from those of forward-looking statements is contained from time to time in the documents filed by MoneyGram with the SEC. MoneyGram SEC documents can be obtained by contacting MoneyGram, through MoneyGram’s website at ir.moneygram.com, or through the SEC’s electronic data collection and analysis system at www.sec .gov. MoneyGram assumes no obligation to publicly update or revise any forward-looking statement.

Media contact
Stephen reiff
[emailÂ protected]

SOURCE MoneyGram