MoneyGram International, Inc., the global leader in the evolution of digital P2P payments, announced two measures to continue to improve its capital structure and further reduce its outstanding long-term debt balance. The Company announced it will make a $15 million voluntary term loan principal repayment. In addition, the board of directors of the Company has authorized a stock repurchase program for the repurchase of up to $50 million of the Company’s outstanding common stock.
“This announcement demonstrates our confidence in MoneyGram’s improving financial strength and long-term trajectory,” said Larry Angelilli, MoneyGram Chief Financial Officer. “These actions permit us to improve our capital structure by reducing our outstanding debt, which follows our successful refinancing earlier in the year, and further reduce our interest expense, which is now at the lowest level it has been in years.”
Under the stock repurchase program, repurchases can be made from time to time using a variety of methods, including open market purchases, all in compliance with the rules of the United States Securities and Exchange Commission and other applicable legal requirements. The timing and actual number of shares repurchased will be determined by management based on market conditions and other factors.
Read More: Flutterwave Enables New Europe-Africa Payment Corridors via Stellar
The Company intends to repurchase shares to the extent management believes it would not adversely impact the Company’s current credit ratings. In addition, the Company only intends to execute buybacks opportunistically in response to what it believes is a significant recent stock price depreciation. The repurchase program does not obligate the Company to acquire any particular number of shares, and the repurchase program may be suspended or discontinued at any time at the Company’s discretion.
[To share your insights with us, please write to sghosh@martechseries.com]
