By Paul A. Harris
Portland, Ore., May 31 – Mobius Merger Sub, Inc. priced an upsized $500 million issue of 9% seven-year senior secured notes (B2/B/B+) at 83 to yield 12.742% on Wednesday, according to market sources.
The deal, backing the buyout of MoneyGram International Inc. by Madison Dearborn Partners, was upsized from $450 million, and priced on top of official coupon, price and yield talk.
Official yield talk came nearly 175 basis points beyond the wide end of early guidance in the 10˝% to 11% area.
In addition to the big rate concession came covenant changes which primarily bear upon how the company may disburse cash and incur additional debt.
With the $50 million upsize of the bonds the concurrent bank loan downsized to $400 million from $450 million.
Demand across both the bond and loan came to approximately $1.2 billion, a trader said.
Original tranche sizes were $400 million for the bonds and $500 million for the loan.
Goldman Sachs & Co. LLC (lead left), Barclays, Deutsche Bank Securities Inc. and Wells Fargo Securities LLC were bookrunners for the Rule 144A and Regulation S deal..
Bond and loan proceeds, together with 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.
| Issuer: | Mobius Merger Sub, Inc.
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| Amount: | $500 million, increased from $450 million
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| Securities: | Senior secured notes
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| Maturity: | June 1, 2030
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| Bookrunners: | Goldman Sachs & Co. LLC (lead left), Barclays, Deutsche Bank Securities Inc. and Wells Fargo Securities LLC
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| Coupon: | 9%
|
| Price: | 83
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| Yield: | 12.742%
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| Spread: | Treasuries plus 905 bps
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| First call: | June 1, 2026 at 104.5
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| Trade date: | May 31
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| Settlement date: | June 1
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| Ratings: | Moody’s: B2
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| S&P: B
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| Fitch: B+
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| Distribution: | Rule 144A and Regulation S for life
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| Price talk: | 9% coupon at OID 83 to yield 12.742%
|
| Marketing: | Roadshow
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