June 7 2019
Money transfer company MoneyGram International Inc is struggling to finalize a US$663m loan as its financial performance wilts under fierce competition following a US$125m US government fine last November for poor money-laundering controls, sources said.
MoneyGram, the second largest provider of money transfers in the world, is raising the four-year term loan B to amend an existing facility and extend the maturity of its debt to 2023 from 2020.
The amendment and extension of the company’s original loan, an US$850m facility, was seen as an attempt to avert potential liquidity issues and buy MoneyGram time to restructure its operations or put itself up for sale, a banker said.