Item 7.01
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Regulation FD Disclosure.
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MoneyGram International, Inc., a Delaware corporation (the Company) is one of many global companies providing essential
services during the current global health crisis related to the novel COVID-19 coronavirus (COVID-19) pandemic. With the use of technology, the Company
has been able to maintain continuity of its operations and has transitioned its workforce to work from home. Notwithstanding, due to COVID-19 related mandatory closures and stay-at-home orders, many of the Companys agents are closed and our consumers have had to curtail their financial activities. As a result, since the middle of March the Company has seen a negative
impact on its transaction volume and revenue from its walk-in business.
To help protect its
employees, shareholders, and consumers amid the COVID-19 pandemic, the Company has proactively implemented a comprehensive set of actions to help ensure continuity of its services and its financial stability
during this period of uncertainty.
Expense Reduction Initiatives
Effective immediately, the Company is announcing that:
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Salaries of all non-hourly employees, including all Executive Officers of
the Company, are being reduced by 20%; and
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Each non-employee director of the Company has volunteered to accept a 20%
reduction in the cash retainers paid for Board service.
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In addition, the Company has already temporarily suspended a
majority of discretionary expenses not directly related to revenue-generating activity.
The salary and Board cash retainer reductions
described above will be effective until the Board determines in its discretion that the effects of COVID-19 have subsided. The amounts relinquished by non-hourly employees, including Executive Officers, and
the Board may be paid back to all or any of such individuals in the future, as determined by the Board in its discretion.
Liquidity Measures
As previously announced, the Company has also borrowed $23 million of the Companys $35 million revolving credit
facility as a proactive measure to increase the Companys cash position and preserve financial flexibility in light of current uncertainty in the global markets resulting from the COVID-19 pandemic.
Further details related to the borrowing are set forth in the Form 8-K filed by the Company on March 27, 2020.
First Quarter 2020 Outlook Update
While the Companys performance had been in line with its first quarter outlook through the middle of March, due to the recent disruption
and uncertainty caused by the COVID-19 pandemic, the Company is withdrawing its first quarter fiscal 2020 financial outlook provided on February 24, 2020 and is not providing an updated
financial outlook at this time.
Forward-Looking Statements
Additional information concerning factors that could cause actual results to differ materially from those in the forward-looking statements is
contained from time to time in MoneyGrams SEC filings. MoneyGrams SEC filings may be obtained by contacting MoneyGram, through MoneyGrams web site at ir.moneygram.com or through the SECs Electronic Data Gathering and Analysis
Retrieval System (EDGAR) at http://www.sec.gov. MoneyGram undertakes no obligation to publicly update or revise any forward-looking statement.