MoneyGram International Announces Completion of Debt Refinancing with $975 Million Senior Secured Credit Facility

  MoneyGram International Announces Completion of Debt Refinancing with $975
  Million Senior Secured Credit Facility

     New credit facility reduces interest expense and extends maturities

Business Wire

DALLAS -- March 28, 2013

MoneyGram International, Inc. (NYSE:MGI), a leading global payment services
company, today announced that on March 28, 2013 it completed a private
placement of a new $975 million senior secured credit facility consisting of a
$125 million, multi-bank five-year revolving credit facility and an $850
million, seven-year term loan. The new term loan initially bears interest at
LIBOR, subject to a floor of 1.0%, plus 3.25%, with a step down to LIBOR plus
3.00% upon achievement of a specified leverage ratio. MoneyGram expects to
realize annual cash interest savings of approximately $28 million as a result
of the refinancing.

The net proceeds from the new term loan were used to repay in full the
company's existing first lien credit facility and second lien notes. The
company repaid its $485 million of existing first lien notes due in 2017 at
par. The company also purchased and retired all $325 million of its
outstanding 13.25% Senior Secured Second Lien Notes due in 2018 held by
affiliates of Goldman, Sachs & Co. The purchase price for the second lien
notes was 106.625% of the outstanding principal, plus accrued and unpaid
interest.

“The completion of our debt refinancing represents a true milestone in the
turn-around of MoneyGram. Our new term loan expands our first lien facility
under favorable terms, extends maturities into 2020 and substantially reduces
our interest expense. The successful placement of the new credit facility
reflects the tremendous progress the company has made since the
re-capitalization in 2008," said Pamela H. Patsley, MoneyGram's chairman and
chief executive officer.

Bank of America Merrill Lynch and Wells Fargo Securities served as joint lead
arrangers and J.P. Morgan Securities, Deutsche Bank Securities and Credit
Agricole Corporate and Investment Bank served as joint bookrunners.

About MoneyGram International

MoneyGram International, a leading money transfer company, enables consumers
who are not fully served by traditional financial institutions to meet their
financial needs. MoneyGram offers bill payment services in the United States
and Canada and money transfer services worldwide through a global network of
more than 310,000 agent locations – including retailers, international post
offices and financial institutions – in 197 countries and territories. To
learn more about money transfer or bill payment at an agent location or
online, please visit moneygram.com or connect with us on Facebook.

Contact:

MoneyGram International, Inc.
Media Contact:
Patty Sullivan, 214-303-9923
media@moneygram.com
or
Investor Relations
Eric Dutcher
edutcher@moneygram.com
 
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