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Despite a pending capital infusion into MoneyGram International Inc. from Thomas Lee Partners and others, the payment services firm's shares continue to take it on the chin as they trade down 16% in early afternoon trading Wednesday, after taking a nearly 50% haircut Tuesday on news the firm had net unrealized losses of $860 million, mostly related to the mortgage-backed investments in its portfolio.
MoneyGram plans to sell as much as 65% of its equity to a group of investors led by Thomas Lee Partners as part of a recapitalization plan that would inject $750 million to $850 million in cash into the company and give it $550 million to $750 million in debt facilities from third parties. With financial giants like Citigroup Inc. and Merrill Lynch & Co. also announcing bad news, investors wasted no time stampeding for the doors, resulting in the pummeling of MoneyGram's market cap and much of the markets in general. Full coverage will come later in The Daily Deal and on TheDeal.com. - George White CategoriesPrivate capital video
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