MoneyGram Prices Secondary Offering Of Aggregate 8 Mln Shares At $16.50/Shr

(RTTNews) - MoneyGram (MGI), a global money transfer and payment services company, said the underwritten secondary public offering of an aggregate of its 8.0 million common shares being sold by affiliates and co-investors of Thomas H. Lee Partners, L.P. and affiliates of Goldman, Sachs & Co. has priced at $16.50 per share. The underwriters were granted a 30-day option to buy up to an additional 1.20 million shares. The company would not receive any proceeds from the offering. The offering may close on April 2, 2014.

Concurrently with the closing of the offering, MoneyGram would repurchase 8.185 million shares from affiliates and co-investors of Thomas H. Lee Partners, L.P. The buyback would be effected in a private, non-underwritten transaction at a price per share equal to $16.25, which is the midpoint between the public offering price and the price to the selling stockholders in the offering. The firm plans to fund the share repurchase with $130 million in borrowings under a new incremental term loan and to utilize cash for the balance.

The firm anticipates that the share repurchase would result in accretion of around $0.11 on a pro forma 2013 adjusted earnings per share basis after giving effect to the anticipated impact on interest expense as a result of the Incremental Debt Financing.