Thomas H. Lee Partners will recapitalize payment services company MoneyGram International Inc. in a deal that gives the private equity firm a 55% stake in MoneyGram, Reuters reported. Under the terms of the recapitalization agreement, Thomas H Lee Partners will convert all of its Series B shares into common stock. Goldman Sachs will convert all of its Series B-1 preferred shares into Series D participating convertible preferred stock, Reuters wrote. MoneyGram is based in Minneapolis, Minnesota.
(Reuters) – MoneyGram International Inc said it signed a recapitalization agreement with certain parties including affiliates of Thomas H. Lee Partners, following which the private equity firm would own about 55 percent of the payment services company.
Under the terms of the recapitalization agreement, THL and its co-investors will convert all of their Series B Preferred into common stock, and Goldman Sachs will convert all of its Series B-1 preferred shares into Series D participating convertible preferred stock, a non-voting equivalent to common stock.
The agreement provides that THL and its co-investors will get about 28.2 million additional common shares and $140.8 million in cash.
Goldman Sachs will receive about 15,504 additional shares of Series D Preferred, which is equal to 15.5 million common shares, and $77.5 million in cash.
Following the transactions, THL and its co-investors are expected to have about 314.6 million common shares, representing about 55.1 percent of the common shares outstanding on a fully diluted basis.
Goldman Sachs is expected to have about 173,190 shares of Series D Preferred, which are convertible by holders other than Goldman Sachs and its affiliates, into about 173.2 million common shares, representing about 30.3 percent of common stock after the transaction on a fully diluted basis.
MoneyGram is also working to obtain a new senior secured credit facility for the partial funding of the recapitalization.
Minneapolis, Minnesota-based MoneyGram’s shares closed at $2.68 on Monday on the New York Stock Exchange. (Reporting by Brenton Cordeiro in Bangalore; Editing by Gopakumar Warrier)