MoneyGram announces strategic partnership with ripples

DALLAS 17. June 2019 / PRNewswire / – MoneyGram International, Inc. (NASDAQ: MGI), one of the world's largest money transfer companies, announced today that it has entered into a strategic agreement with Ripple, a leading enterprise blockchain solutions provider for global payments , which enables MoneyGram to use Ripple's xRapid product, which utilizes XRP in currency settlement as part of MoneyGram's cross-border payment process. The partnership supports the companies' common goal of improving settlement of cross-border payments by increasing efficiency and reducing costs through RippleNet.

Through this partnership, which will have an initial period of two years, Ripple MoneyGram becomes the key partner for cross-border settlement using digital assets. As part of this partnership, Ripple has made an initial investment of [$ $ 30 million in MoneyGram's equity, consisting of ordinary shares and a subscription right to purchase shares. Ripple purchased the newly issued stock market (including warranted shares) from MoneyGram at $ 4.1[ads1]0 per share, representing a significant premium to MoneyGram's current market price. In addition, by MoneyGram's choice, Ripple may finance additional purchases of stock or warrants up to [$ $ 20 million at a minimum price of [4,459008] $ 4.10 per share.

"I'm extremely excited about Ripple's investment in MoneyGram and the related strategic partnership," Alex Holmes MoneyGram's chairman and CEO. "As the payment industry evolves, we are focused on continuing to improve Our platform and exploit the best technology as part of our overall settlement process, "said Mr. Holmes." Through our partnership with Ripple, we will also have the opportunity to further improve our business and streamline our global liquidity management. Since our original partnership announced in January 2018 we have been told Ripple and look forward to further leveraging the strength of both our businesses. "

Today, MoneyGram is dependent on traditional foreign exchange markets to meet settlement obligations, which require pre-purchase of most currencies. Through this strategic partnership, MoneyGram will be able to determine key currencies and match the timing of financing with its settlement requirements, reducing operating costs, working capital needs and better Earnings and Free Cash Flow.

"This is a great milestone in helping MoneyGram be one of the world's largest money transfer companies, and the partnership will continue to reach Ripple's network. I look forward to a long-term, very strategic partnership between our companies, he says. Brad Garlinghouse CEO of Ripple.

"We are very pleased with the terms of the Ripple investment that support the company with fixed capital and extra liquidity," Larry Angelilli Finance Director of MoneyGram. "This partnership also gives MoneyGram the opportunity to improve operational efficiency and increase earnings and free cash flow."

Separately, MoneyGram provides the update that it continues to make progress towards closing the refinancing of its existing first trial and rotating facilities and expects to announce the end of the transaction next week.

About MoneyGram

MoneyGram is a global leader in money transfer and payment services for omnichannel that allows friends and family to secure, affordable and conveniently send money to life daily needs in over 200 countries and territories.

The innovative MoneyGram platform utilizes its leading digital and physical network, global financial settlement engine, cloud-based infrastructure with integrated APIs, and the unparalleled compliance program that leads the industry to protect consumers.

For more information, please visit MoneyGram.com

Forward-looking statements

This communication contains forward-looking statements that are protected as forward-looking statements under the Private Securities Litigation Reform Act of 1995, which is not limited to historical facts, but reflects the company's current beliefs, expectations or intentions for future events. Words like "may", "will", "could", "should", "expect", "plan", "project", "think", "expect" "" potential, "" incorporated "," goals ", "Continued" and similar terms are intended to identify such forward-looking statements. The statements in this non-historical statement are forward-looking statements under federal securities laws Specific forward-looking statements include statements on the company's expected operating results, specific factors such as: expected to affect the company's operating profit and expected restructuring and reorganization programs, forward-looking statements are exposed to a number of risks and uncertainties, many of which are beyond the company's control, which may cause actual results to differ materially from the results expressed or implied by the statements. the risks and uncertainties include, but are not limited to, our ability to complete future share capital and guarantee issuance rs according to the agreement with Ripple, our ability to close the company's scheduled second futures permit or complete the refinancing of the first loan period and revolving credit facilities; our ability to compete effectively with our ability to maintain key agent or billing conditions, or a reduction in business or transaction volume from these conditions, including our largest agent, Walmart, either through the introduction of Walmart by additional competing white label branded money transfer products or otherwise; our ability to deal with consumer or agent fraud risk The ability of us and our agents to comply with US and international laws and regulations; lawsuits or investigations involving us or our agents uncertainties related to compliance with the US federal government and the effect of the agreements on our reputation and business; regulations relating to consumer privacy, data usage and security; our ability to develop and timely introduce new and improved products and services and our investments in new products, services or infrastructure changes; Our ability to handle risk related to our international sales and operations. Our offer of money transfer services through agents in regions that are politically volatile; changes in tax laws or an unfavorable outcome with regard to auditing our tax returns or tax positions, or a lack of us to establish sufficient reserves for tax incidents; our significant debt obligations, significant debt obligations and credit ratings large bank failures or persistent financial market illiquidity, or illiquidity at our clearing, cash management and custody financial institutions; The ability of us and our agents to maintain adequate banking relationships is a security or privacy violation in systems, networks or databases we trust; interference in our computer networks and data centers; weakness in economic conditions, both in the US and global markets; a major change, material slow or complete disruption of international migration patterns; the economic health of some European countries or parting from a country from the EU; our ability to handle credit risk from our agents and official checking financial institutions; our ability to protect our brand and intellectual property adequately and avoid violating the rights of others to our ability to attract and retain key people; our ability to handle the risks associated with the operation of outlets and acquisitions or start-ups of businesses; Any restructuring actions and cost reduction initiatives that we implement cannot deliver the expected results, and these actions can adversely affect our business. our ability to maintain effective internal controls our capital structure and the specific voting rights given to designers by Thomas H. Lee Partners, L.P. in our board; and uncertainties described in the "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Profit and Loss", of the company's public reports filed with the Securities and Exchange Commission ("SEC"), including the company's annual report on Form 10-K for the year ended December 31, 2018 and the company's quarterly report on Form 10-Q for the quarterly period ended March 31, 2019 .

Additional information on factors that may cause actual results to differ materially from those in forward-looking statements is occasionally found in the company's SEC archive. The company's SEC archive can be obtained by contacting the company, through the company's website at ir.moneygram.com or through the SEC's electronic data collection and analysis collection system (EDGAR) at http://www.sec.gov. The company undertakes no obligation to publicly update or revise forward-looking statements.

Contact:

Investor Relations:
214-979-1400
ir@moneygram.com [19659018] Media:
Noelle Whittington
media @ moneygram. com
214-979-1402

SOURCE MoneyGram

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