MoneyGram International has prepaid $100 million of principal balance under its Second Lien Credit Agreement, dated as of June 26, 2019, with Bank of America, N.A., as administrative agent, the financial institutions party thereto as lenders, and the other agents party thereto.Â
MoneyGramÂ also paid a requiredÂ $4 millionÂ prepayment call premium plus accrued interest to the lenders for a total payment ofÂ $107 million.
The Company used all of theÂ $97.6 millionÂ in proceeds that it raised from its recently completed “at-the-market”Â equity offering program plus cash on hand.
“Following the successful execution of our equity offering, which we completed in under two weeks, we are using the proceeds to reduce our highest cost debt balance by $100 million.
This debt reduction is a significant milestone for MoneyGram and demonstrates our ability to enhance our capital structure and lower our cost of funds,” said Larry Angelilli, MoneyGram Chief Financial Officer.
“With the continuing growth of MoneyGram Online, along with momentum in many other parts of our money transfer business and the conclusion of the DPA, our company is entering a new era of improved cash flow and growth.”