MoneyGram 2007 Annual Report Download - page 126

Download and view the complete annual report

Please find page 126 of the 2007 MoneyGram annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 164

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138
  • 139
  • 140
  • 141
  • 142
  • 143
  • 144
  • 145
  • 146
  • 147
  • 148
  • 149
  • 150
  • 151
  • 152
  • 153
  • 154
  • 155
  • 156
  • 157
  • 158
  • 159
  • 160
  • 161
  • 162
  • 163
  • 164

Table of Contents
MONEYGRAM INTERNATIONAL, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
to March 25, 2011, the Company has the option to capitalize interest of 14.75 percent, but must pay in cash 0.50 percent of the interest
payable.
The Notes contain covenants that, among other things, limit the Company's ability to: incur or guarantee additional indebtedness; pay
dividends or make other restricted payments; make certain investments; create or incur certain liens; sell assets or subsidiary stock;
transfer all or substantially all of its assets or enter into merger or consolidation transactions and enter into transactions with affiliates.
The covenants also substantially restrict the Company's ability to incur additional debt and invest assets that are subject to restrictions for
the payment of payment service obligations. The Company is also required to maintain at least a 1:1 ratio of certain assets to outstanding
payment service obligations.
The Company can redeem the Notes after five years at specified premiums. Prior to the fifth anniversary, the Company may redeem some
or all of the Notes at a price equal to 100 percent of the principal amount thereof, plus accrued and unpaid interest, if any, plus a premium
equal to the greater of one percent or an amount calculated by discounting the sum of (a) the redemption payment that would be due upon
the fifth anniversary plus (b) all required interest payments due through such fifth anniversary using the treasury rate plus 50 basis points.
Upon a change of control, the Company is required to make an offer to repurchase the Notes at a price equal to 101 percent of the
principal amount plus accrued and unpaid interest. The Company is also required to make an offer to repurchase the Notes with proceeds
of certain asset sales that have not been reinvested in accordance with the terms of the Note or have not been used to repay certain debt.
Inter-creditor Agreement — In connection with the financing arrangements, the lenders under both the Senior Facility and the Notes have
agreed to be bound by the terms of an inter-creditor agreement under which the lenders have agreed to waive certain rights and limit the
exercise of certain remedies available to them for a limited period of time both before and following a default under the financing
arrangements.
F-52