PRINT THIS PAGE Thomas H. Lee Partners, Goldman Sachs invest in MoneyGram recapitalisation13/02/2008. Source: AltAssets. 
An investment group led by growth buy-out firm Thomas H. Lee Partners and investment banking firm Goldman, Sachs & Co. has agreed to invest at least $710m in a recapitalisation of payment services company MoneyGram International. The equity investment could be up to a maximum amount of $775m, depending on the price at which MoneyGram is able to sell certain investment portfolio assets under the terms of the agreement.
MoneyGram has also agreed with affiliates of Goldman Sachs to provide debt financing of up to $500m, and is expected to obtain an additional $200m in debt financing prior to the close of the deal.
The company also expects to have $350m outstanding or available under its existing credit agreement, and will seek amendments from its existing lenders to modify certain terms and to permit those amounts to remain outstanding or available.
Philip W Milne, president, CEO and chairman of MoneyGram, said, 'The board of directors of MoneyGram, after careful consideration in conjunction with its independent advisors, unanimously supports this transaction and believes it is in the best interests of MoneyGram.'
MoneyGram is listed on the New York Stock Exchange. In 2006, the company recorded $1.16bn in revenue, according to a statement. MoneyGram has approximately 143,000 money transfer agent locations in 170 countries and territories.
Since its inception, Thomas H. Lee Partners has raised approximately $22bn of equity capital. Notable transactions include Aramark, Ceridian, Dunkin' Brands, Experian, Fidelity National Information Services, Grupo ONO, HomeSide Lending, Houghton Mifflin, Michael Foods, The Nielsen Company, Nortek, ProSiebenSat.1, Simmons Bedding Company, Snapple, Univision, Warner Chilcott, Warner Music Group and West Corporation.
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