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DALLAS, June 17, 2019 / PRNewswire / – MoneyGram International, Inc. (NASDAQ: MGI), one of the largest money transfer companies in the world, announced today the signing of a strategic agreement With Ripple, blockchain provider for payment companies, MoneyGram will be able to use Ripple's xRapid product, leveraging the XRP for currency settlement as part of the MoneyGram cross-border payment process. The partnership supports the common goal of companies to improve the settlement of cross-border payments by increasing efficiency and reducing costs via RippleNet.
Through this partnership, which will have an initial term of two years, Ripple will become the key partner of MoneyGram for cross-border settlements using digital assets. As part of this partnership, Ripple made an initial investment of $ 30 million MoneyGram Equity, consisting of common shares and a common share purchase warrant. Ripple purchased the newly issued common shares (including the underlying shares of the warrant) from MoneyGram at $ 4.10 per share, which represents a significant premium over the current market price of MoneyGram. In addition, Ripple may, at the option of MoneyGram, fund additional purchases of common shares or bonds. $ 20 million at a minimum price of $ 4.10 per share.
"I am extremely pleased with Ripple's investment in MoneyGram and the associated strategic partnership," he said. Alex Holmes, President and CEO of MoneyGram. "As the payments industry evolves, we are working to improve our platform and use the best technologies as part of our overall settlement process," said Holmes. "Thanks to our partnership with Ripple, we will also have the opportunity to further improve our operations and streamline our overall liquidity management." Since our initial partnership announced January 2018we have come to know Ripple and look forward to leveraging the strengths of our two activities. "
Today, MoneyGram relies on traditional foreign exchange markets to meet its settlement obligations, which require advance purchases of most currencies. Through this strategic partnership, MoneyGram will be able to settle key currencies and match the timing of funding to settlement requirements, reducing operating costs, working capital requirements and improving earnings and free cash flow. .
"This is a milestone in the transformation of cross-border payments, MoneyGram is one of the largest money transfer companies in the world, and the partnership will continue to strengthen the reach of Ripple's network. 'a long-term network, strategic partnership between our companies', said Brad Garlinghouse, CEO of Ripple.
"We are very satisfied with the investment conditions of Ripple, which supports the company with permanent capital and additional liquidity," said Larry Angelilli, Chief Financial Officer of MoneyGram. "This partnership also provides MoneyGram with the opportunity to improve the efficiency of its operations and increase its earnings and free cash flow."
In addition, MoneyGram informs companies that it continues to make progress in closing refinancing its preferred credit facilities and existing revolving bonds and plans to announce the closing of this transaction next week.
About MoneyGram
MoneyGram is a global leader in omni-channel cash payment and payment services that allows friends and family to send money securely, affordably, and conveniently for everyday needs. life in more than 200 countries and territories.
The innovative MoneyGram platform leverages its physical and digital network, global financial settlement engine, cloud-based infrastructure with built-in APIs, and unmatched compliance program, which enables the industry to protect consumers. consumers.
For more information, please visit MoneyGram.com
Forward-looking statements
This document contains forward-looking statements protected under the Securities Securities Act, 1995, which are not limited to historical facts but reflect the current beliefs, expectations or intentions of the Company. concerning future events. Words such as "may", "will", "could", "should", "expect", "plan", "plan", "intend", "anticipate", "believe", "Estimate", "predict" "" potential "," in accordance "," target "," continue "and similar expressions are intended to identify such forward-looking statements The statements contained in this document that are not historical statements are forward-looking statements within the meaning of the federal securities laws Specific forward-looking statements include, but are not limited to, statements regarding the Company's projected results of operations, specific factors that may affect the results of operations of the Company. of the Company and the expected results of the Restructuring and Reorganization Program Forward-looking statements are subject to numerous risks and uncertainties, many of which are beyond the control of the Company, which could result in a significant difference between the actual results and the results expressed or implied in the statements. Our risks and uncertainties include, but are not limited to: our ability to consume ordinary issues and future warrants under the Ripple Agreement, our ability to close the Second Preferred Term Facility; the privilege contemplated by the Company or to complete the refinancing of its term loan of first lien; revolving credit facilities; our ability to compete effectively; our ability to maintain key or billing agent relationships, or a reduction in the volume of business or transactions of these relationships, including our primary agent, Walmart, whether through Walmart's introduction of money transfer products additional "white" mark competitors or otherwise; our ability to manage the risk of fraud by consumers or agents; the ability of us and our agents to comply with US and international laws and regulations; litigation or investigations involving us or our agents; uncertainties related to compliance with agreements with the US federal government and the effect of agreements on our reputation and operations; regulations concerning consumer privacy, data use and security; our ability to successfully develop and introduce new and improved products and services and our investments in new products, services or infrastructure changes in a timely manner; our ability to manage the risks associated with our international sales and operations; our offer of money transfer services through agents located in politically unstable regions; changes in tax law or adverse experience with respect to the audit of our tax returns or tax positions, or our inability to establish sufficient reserves for tax events; our significant debt service obligations, our major debt obligations and our credit ratings; serious bank failure or long-term illiquidity of the financial markets, or illiquidity in our financial clearing, cash management and custodial institutions; the ability of us and our agents to maintain adequate banking relationships; a breach of security or privacy in the systems, networks or databases on which we rely; disruption of our computer network systems and data centers; weak economic conditions in both the US and global markets; significant change, material slowdown or complete disruption of international migration patterns; the financial health of certain European countries or the secession of a country of the European Union; our ability to manage the credit risks of our agents and customers of financial institutions who make official checks; our ability to adequately protect our brand and intellectual property rights and to avoid infringing on the rights of others; our ability to attract and retain key employees; our ability to manage the risks associated with the operation of retail outlets and the acquisition or start-up of businesses; the restructuring measures and cost reduction initiatives we take may not produce the expected results and these actions could adversely affect our business; our ability to maintain effective internal controls; our capital structure and the special voting rights conferred on the representatives of Thomas H. Lee Partners, LP on our board of directors; and the uncertainties described in the "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" sections of the Company's public filings with the Securities and Exchange Commission ("SEC"). ), including the annual report on the company's 10-K form for the year ended December 31, 2018 and the company's quarterly report on Form 10-Q for the quarter ended March 31, 2019.
Additional information about the factors that could cause actual results to differ materially from those indicated in the forward-looking statements can be found on the Company's filings with the SEC. Documents filed by the company with the SEC can be obtained by contacting the company, via the company's website at ir.moneygram.com or via the company's electronic data retrieval system (EDGAR). SEC at the address http://www.sec.gov. The Company assumes no obligation to publicly update or revise any forward-looking statements.
Contact:
Investor Relations:
214-979-1400
[email protected]
Media:
Noelle Whittington
[email protected]
214-979-1402
SOURCE MoneyGram
Related Links
www.moneygram.com
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