MoneyGram 2005 Annual Report Download - page 79

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 $ 378,451 $ 17,075 $ 395,526
Goodwill acquired — — —
Impairment losses — — —
Balance as of December 31, 2004 $ 378,451 $ 17,075 $ 395,526
Goodwill acquired 8,744 — 8,744
Impairment losses — — —
Balance as of December 31, 2005 $ 387,195 $ 17,075 $ 404,270
Goodwill acquired in 2005 relates to the acquisition of ACH Commerce and was allocated to the Global Funds Transfer segment. There were no changes to
goodwill during 2004. 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 2005 and determined that there was no impairment.
Note 9. Debt
Debt consisted of the following at December 31:
2005 2004
Weighted Weighted
Average Average
Amount Interest Rate Amount Interest Rate
(Dollars in thousands)
Senior term note, due through 2010 $ 100,000 3.85% $ 100,000 2.79%
Senior revolving credit facility, due through 2010 50,000 3.85% 50,000 2.79%
150,000 150,000
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) and paid the proceeds to Viad. The interest rate on both the term loan and the credit facility
was an indexed rate of LIBOR plus 60 basis points, subject to adjustment in the event of a change in the credit rating of our senior unsecured debt. On
December 31, 2004, the interest rate was 3.1 percent, exclusive of the effects of commitment fees and other costs. The Company paid a fee on the facilities
regardless of the usage ranging from 0.1 percent to 0.375 percent depending upon our credit rating. The Company incurred $1.2 million of financing costs in
connection with this transaction. These costs were capitalized and were being amortized over the life of the debt.
On June 29, 2005, the Company amended its bank credit facility. The amended agreement extends the maturity date of the facility from June 2008 to June
2010, and the scheduled repayment of the $100.0 million term loan to June 2010. Under the amended agreement, the credit facility may be increased to
$500.0 million under certain circumstances. In addition, the amended agreement reduced the interest rate applicable to both the term loan and the credit
facility to LIBOR plus 50 basis points, subject to adjustment in the event of a change in the credit rating of our senior unsecured debt. The amendment also
reduced fees on the facility to a range of 0.080 percent to 0.250 percent, depending on the credit rating of our senior unsecured debt. Restrictive covenants
relating to dividends and share buybacks were eliminated, and the dollar value of permissible acquisitions without lender
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