Edward A. Mule’s Silver Point Capital reported its 1.3% activist stake in Moneygram International Inc. (MGI) on November 28th. The Form 4 filing shows Silver Point Capital made an insider sale of 35,354 shares at $15.54 on November 23, remaining 759 thousand shares in its position. According to the amended 13D filing, on November 17, 2011, the underwriter of MGI entered into an underwriting agreement, in which the underwriter agreed to repurchase 9.25 million shares from its several large shareholders. The offering was consummated on November 23, 2011, and the price for the selling shareholders was $15.54 per share. MGI has lost 22% year to date. The stock is now trading at $17.01
Nine hedge funds took MGI in the second quarter. Richard Blum’s Blum Capital Partners was MGI’s largest stakeholder among those hedge funds. The firm retained 17.20 million shares at that time. Chuck Royce’s Royce & Associates had 2.96 million shares. Richard Schimel’s Diamondback Capital had 1.88 million shares.
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.