MoneyGram International announced it will issue a $150 million incremental senior secured term loan B to purchase stock from its private equity shareholders. In conjunction with buying back shares, MoneyGram will offer $150 million in secondary shares. The transaction will result in credit ratios below our previous expectations, but at levels still appropriate for the rating. Positively, the transactions will reduce MoneyGram's private equity ownership. We are affirming our 'BB-' issuer credit rating on MoneyGram and affirming the 'BB-' senior secured issue rating after the proposed $150 million incremental senior secured term loan B. The stable outlook reflects our expectation that MoneyGram will operate with leverage (adjusted for noncancellable operating leases and unfunded postretirement benefits) of approximately 4.0x in 2014
