DALLAS, June 18, 2021 /PRNewswire/ -- MoneyGram
International, Inc. (NASDAQ: MGI) ("MoneyGram" or the
"Company") is announcing the completion of its previously announced
"at-the-market" equity offering program (the "ATM Program")
which provided for the offer and sale, from time to time, of shares
of its common stock (the "Shares") having an aggregate
sales price of up to $100 million.
In less than two weeks, MoneyGram completed the ATM Program by
selling $99.8 million, or 10.4
million Shares, at an average price per share of $9.56, resulting in total net proceeds to the
Company of $97.6 million. As of
June 17, 2021, MoneyGram had
90,530,779 shares outstanding, which includes the shares that were
sold pursuant to the ATM Program.
As previously disclosed, MoneyGram intends to use the net
proceeds from the sale of the Shares to partially prepay
outstanding indebtedness under the Company's First Lien Credit
Agreement, dated June 26, 2019, with Bank of America,
N.A. acting as administrative agent, and the lender parties
thereto, as amended (the "First Lien Credit Agreement"), and/or
under the Company's Second Lien Credit Agreement, dated as
of June 26, 2019, with Bank of America, N.A., as
administrative agent, the financial institutions party thereto as
lenders and the other agents party thereto (the "Second Lien Credit
Agreement"), and to pay for certain costs associated with the
refinancing of the First Lien Credit Agreement and Second Lien
Credit Agreement that the Company currently expects to complete
early in the third quarter of 2021.
This press release does not constitute an offer to sell or
the solicitation of an offer to buy, nor shall there be any sale of
these securities, in any state or other jurisdiction in which such
offer, solicitation or sale would be unlawful prior to registration
or qualification under the securities laws of any such state or
other jurisdiction.
About MoneyGram International, Inc.
MoneyGram is leading the evolution of digital P2P payments.
With a purpose-driven strategy to mobilize the movement of money, a
strong culture of fintech innovation, and leading customer-centric
capabilities, MoneyGram has grown to serve nearly 150
million people across the globe over the last five years.
The Company leverages its modern, mobile, and API-driven
platform and collaborates with the world's leading brands to serve
consumers through MoneyGram Online (MGO), its direct-to-consumer
digital business, its global retail network and its emerging
embedded finance business for enterprise
customers, MoneyGram as a Service.
For more information, please
visit ir.moneygram.com and follow @MoneyGram.
Forward-Looking Statements
This communication contains forward-looking statements which are
protected as forward-looking statements under the Private
Securities Litigation Reform Act of 1995 that are not limited to
historical facts, but reflect MoneyGram's current beliefs,
expectations or intentions regarding future events and speak only
as of the date they are made. Words such as "may," "might," "will,"
"could," "should," "would," "expect," "plan," "project," "intend,"
"anticipate," "believe," "estimate," "predict," "potential,"
"pursuant," "target," "forecast," "outlook," "continue,"
"currently," and similar expressions are intended to identify such
forward-looking statements. The statements in this communication
that are not historical statements are forward-looking statements
within the meaning of the federal securities laws. Specific
forward-looking statements include, among others, statements
regarding the Company's anticipated use of proceeds from the ATM
Program and the currently contemplated refinancing of the First
Lien Credit Agreement and Second Lien Credit Agreement.
Forward-looking statements are subject to numerous risks and
uncertainties that are difficult to predict and many of which are
beyond MoneyGram's control, which could cause actual results to
differ materially from the results expressed or implied by the
statements.
These risks and uncertainties include, but are not limited
to:
- the impact of the COVID-19 pandemic or future pandemics on our
business, including the potential for work stoppages, lockdowns,
shelter-in-place or restricted movement guidelines, service delays
and lower consumer and commercial activity;
- our ability to compete effectively;
- our ability to maintain key agent or biller relationships, or a
reduction in business or transaction volume from these
relationships, including with our largest agent, Walmart, through
its introduction of additional competing white-label money transfer
products or otherwise;
- our ability to continue to grow our digital channel, including
through our direct-to-consumer digital business, MoneyGram
Online;
- a security or privacy breach in systems, networks or databases
on which we rely;
- current and proposed regulations addressing consumer privacy
and data use and security;
- our ability to manage fraud risks from consumers or
agents;
- our ability to refinance our credit facilities and on favorable
terms or within the contemplated time frame, or comply with the
terms thereof;
- the ability of us and our agents to comply with U.S. and
international laws and regulations;
- litigation and regulatory proceedings involving us or our
agents and other commercial relationships, which could result in
material settlements, fines or penalties, revocation of required
licenses or registrations, termination of contracts, other
administrative actions or lawsuits and negative publicity;
- disruptions to our computer systems and data centers and our
ability to effectively operate and adapt our technology;
- the ability of us and our agents to maintain adequate banking
relationships;
- our ability to successfully develop and timely introduce new
and enhanced products and services and our investments in new
products, services or infrastructure changes;
- our high degree of leverage and substantial debt service
obligations, significant debt covenant requirements and our ability
to comply with such requirements;
- our below investment-grade credit rating;
- our ability to maintain sufficient capital;
- weakness in economic conditions, in both the U.S. and global
markets;
- the financial health of certain European countries or the
secession of a country from the European Union;
- a significant change, material slow down or complete disruption
of international migration patterns;
- our ability to manage risks associated with our international
sales and operations, including exchange rates among
currencies;
- our offering of money transfer services through agents in
regions that are politically volatile or, in a limited number of
cases, that may be subject to certain U.S. Treasury Department's
Office of Foreign Assets Control restrictions;
- major bank failure or sustained financial market illiquidity,
or illiquidity at our clearing, cash management and custodial
financial institutions;
- changes in tax laws or unfavorable outcomes of tax positions we
take, or a failure by us to establish adequate reserves for tax
events;
- our ability to manage credit risks from our agents and official
check financial institution customers;
- our ability to adequately protect our brand and intellectual
property rights and to avoid infringing on the rights of
others;
- our ability to manage risks related to the operation of retail
locations and the acquisition or start-up of businesses;
- any restructuring actions and cost reduction initiatives that
we undertake may not deliver the expected results and these actions
may adversely affect our business;
- our capital structure; and
- the risks and uncertainties described in the Risk
Factors and Management's Discussion and Analysis of
Financial Condition and Results of Operations sections of our
Annual Report on Form 10-K for the year ended December 31, 2020 and our Quarterly Report on
Form 10-Q for the quarter ended March 31,
2021, as well as any additional risk factors that may be
described in our other filings with the SEC from time to time.
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
MoneyGram's SEC filings. MoneyGram's SEC filings may be obtained by
contacting MoneyGram, through MoneyGram's web site at
ir.moneygram.com or through the SEC's Electronic Data Gathering and
Analysis Retrieval System at www.sec.gov. MoneyGram undertakes no
obligation to publicly update or revise any forward-looking
statement.
Media Contact
Stephen Reiff
media@moneygram.com
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SOURCE MoneyGram