MoneyGram 2010 Annual Report Download - page 4

Table of Contents
PART I
Item 1. BUSINESS
Overview
MoneyGram International, Inc. (together with our subsidiaries, "MoneyGram," the "Company," "we," "us" and "our") is a leading global
payment services company. Our major products include global money transfers, bill payment solutions and money orders. We help
people and businesses by providing affordable, reliable and convenient payment services.
The MoneyGram® brand is recognized throughout the world. We offer more choices and more control for people separated from friends
and family by distance or those with limited bank relationships to meet their financial needs. Our payment services are available at
approximately 227,000 agent locations in approximately 190 countries and territories. Our services enable consumers throughout the
world to transfer money and pay bills, helping them meet the financial demands of their daily lives. Our payment services also help
businesses operate more efficiently and cost-effectively.
Our principal executive offices are located at 2828 N. Harwood Street, Suite 1500, Dallas, Texas 75201, and our telephone number is
[phone]. Our website address is www.moneygram.com.
History and Development
We conduct our business primarily through our wholly owned subsidiary MoneyGram Payment Systems, Inc. ("MPSI"). Through its
predecessor, Travelers Express Company, Inc. ("Travelers Express"), MPSI has been in operation for 70 years. Travelers Express
acquired MPSI in 1998, adding the MoneyGram brand to our Company and adding international money transfer services to our payment
service offerings. In 2005, we consolidated the operations of Travelers Express with MPSI to eliminate costs of operating the two
businesses under separate corporate entities. This completed the transition of our business from the Travelers Express brand to the
MoneyGram brand, and we retired the Travelers Express brand.
In March 2008, we completed a recapitalization pursuant to which we received an infusion of $1.5 billion of gross equity and debt capital
(collectively, the "2008 Recapitalization"). The equity component consisted of the sale to affiliates of Thomas H. Lee Partners, L.P.
("THL") and affiliates of Goldman, Sachs & Co. ("Goldman Sachs," and collectively with THL, the "Investors") in a private placement of
760,000 shares of Series B Participating Convertible Preferred Stock of the Company (the "B Stock") and Series B-1 Participating
Convertible Preferred Stock of the Company (the "B-1 Stock," and collectively with the B Stock, the "Series B Stock") for an aggregate
purchase price of $760.0 million. We also paid Goldman Sachs an investment banking advisory fee equal to $7.5 million in the form of
7,500 shares of the B-1 Stock.
As part of the 2008 Recapitalization, our wholly owned subsidiary, MoneyGram Payment Systems Worldwide, Inc. ("Worldwide"),
issued Goldman Sachs $500.0 million of senior secured second lien notes with a 10-year maturity (the "Notes"). We also entered into a
senior secured amended and restated credit agreement with JPMorgan Chase Bank, N.A. ("JPMorgan") as agent for a group of lenders,
bringing the total facility to $600.0 million. The amended facility included $350.0 million in two term loan tranches and a $250.0 million
revolving credit facility. See "Management's Discussion and Analysis of Financial Condition and Results of Operations — 2008
Recapitalization" for further information regarding the 2008 Recapitalization.
In 2008, we completed the acquisition of MoneyCard World Express, S.A. ("MoneyCard") and Cambios Sol, S.A., two money transfer
super-agents located in Spain. Thereafter, we merged Cambios Sol, S.A. into MoneyCard and now maintain MoneyCard as our
subsidiary. In 2009, we acquired the French assets of R. Raphaels & Sons PLC. We also sold FSMC, Inc. and continued the exit of our
ACH Commerce business in 2009. In 2010, we acquired our agent in the Netherlands, Blue Dolphin Financial Services N.V.
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