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Table of Contents
MONEYGRAM INTERNATIONAL, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
Following is a reconciliation of goodwill:
Global Funds Payment Total
Transfer Systems Goodwill
(Dollars in thousands)
Balance as of January 1, 2003 $ 280,629 $ 17,075 $ 297,704
Goodwill acquired 97,822 — 97,822
Impairment losses — — —
Balance as of December 31, 2003 378,451 17,075 395,526
Goodwill acquired — — —
Impairment losses — — —
Balance as of December 31, 2004 $ 378,451 $ 17,075 $ 395,526
There were no changes to goodwill during 2004. During 2003, additions to goodwill of $97.8 million related to the acquisition of the remaining minority
interest in MoneyGram International Limited was recorded and allocated to the Global Funds Transfer segment. The amount of goodwill expected to be
deductible for tax purposes is not significant. The Company performed an annual assessment of goodwill during the fourth quarter of 2004 and determined
that there was no impairment.
Note 9. Debt
Debt consisted of the following at December 31:
2004 2003
Weighted Weighted
Average Average
Interest Interest
Amount Rate Amount Rate
(Dollars in thousands)
Senior term note, due through 2008 $ 100,000 2.79% $ —
Senior revolving credit facility, due through 2008 50,000 2.79% —
Commercial Paper — 168,000 1.1%
Senior notes, due 2009 — 35,000 6.3%
Other obligations, due through 2016 — 9,848 3.6%
Subordinated debt, due 2006 — 18,503 5.0%
150,000 231,351
Portion allocated to Viad — (30,000) 10.5%
$ 150,000 $ 201,351
In connection with the spin-off, the Company entered into a bank credit facility providing availability of up to $350.0 million in the form of a $250.0 million
4 year revolving credit facility and a $100.0 million term loan. On June 30, 2004, the Company borrowed $150.0 million (consisting of the $100.0 million
term loan and $50.0 million under the revolving credit facility) that was paid to Viad. The interest rate on both the term loan and the credit facility is an
indexed rate of LIBOR plus 60 basis points, with one, two, three and six month repricing options. On December 31, 2004, the interest rate was 3.1%
(exclusive of the effects of commitment fees and other costs), respectively. The interest rate is subject to adjustment in the event of a change in our debt
rating. The term loan is due in two equal installments on the third and fourth anniversary of the loan. Any advances drawn on the revolving credit facility must
be repaid by June 30, F-24