Edward A. Mule’s Silver Point Capital reported its 1.3% activist stake in Moneygram International Inc. (MGI). Filings show that the underwriters of MGI exercised their options and purchased 9,975 shares from Silver Point Capital. After that Silver Point Capital had 749,118 shares of MGI in its portfolio. The strike price was $15.54 per share, while now the stock is trading at $17.68. MGI lost 19% in 2011.
In the third quarter 2011, Richard Blum’s Blum Capital Partners had the most shares of MGI among the hedge funds we track, with more than 17 million shares. Chuck Royce was also bullish about the stock in Q3. His Royce & Associates boosted its position by 33% and had 3.94 million shares as of the end of September.
Silver Point Capital, L.P. is a distressed debt and credit-focused private investment firm. The firm was founded by Edward Mulé and Robert O’Shea and is based in Greenwich, Connecticut. Silver Point invests in highly complex situations that generally require deep analytical resources, demand timely execution and reward expertise, all of which create natural barriers to entry.
MoneyGram International, Inc. is a worldwide payment services provider. The company provides global money transfers, bill payment solutions and money orders. It operates in two segments, Global Funds Transfer and Financial Paper Products. The company offers its services through its worldwide network of agents and through company-owned retail locations. The company was founded in 1926 and is headquartered in Dallas, Texas.