Why Shares of MoneyGram International Are Up Today
Shares of MoneyGram International (NASDAQ: MGI) traded more than 11% higher as of 2:05 p.m. EST on Monday after the company announced several measures that will reduce debt, improve its capital base, and award shareholders.
MoneyGram announced that it plans to repay $15 million of the principal on one of its terms loans. The company also announced that its board of directors had approved a plan to repurchase as much as $50 million of its common stock.
"This announcement demonstrates our confidence in MoneyGram's improving financial strength and long-term trajectory," CFO Larry Angelilli said in a statement. "These actions permit us to improve our capital structure by reducing our outstanding debt, which follows our successful refinancing earlier in the year, and further reduce our interest expense, which is now at the lowest level it has been in years."
Source Fool.com
