MoneyGram markets $400 million seven-year secured notes; initial talk 10˝%-11%

By Abigail W. Adams

Portland, Me., May 15 – Mobius Merger Sub, Inc. started a roadshow on Monday for a $400 million offering of seven-year senior secured notes (B2/B/B+) backing the buyout of MoneyGram International Inc. with early price talk for a yield of 10˝% to 11%, according to market sources.

The notes are non-callable for three years.

The roadshow will run through Thursday with pricing expected during the May 22 week.

Goldman Sachs & Co. LLC (lead left), Barclays, Deutsche Bank Securities Inc. and Wells Fargo Securities LLC are bookrunners for the Rule 144A and Regulation S for life offering.

Proceeds, together with borrowings from new senior secured credit facilities and proceeds from cash and equity contributions, will be used to fund the cash consideration of Madison Dearborn Partners’ buyout of MoneyGram, to prepay or redeem existing debt and for general corporate purposes.

MoneyGram is a Dallas-based digital P2P payments company.

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