The purpose of this Management's Discussion and Analysis of Financial Condition
and Results of Operations ("MD&A") is to provide an understanding of MoneyGram
International, Inc.'s ("MoneyGram," the "Company," "we," "us" and "our")
financial condition, results of operations and cash flows by focusing on changes
in certain key measures. This MD&A is provided as a supplement to and should be
read in conjunction with, our unaudited Condensed Consolidated Financial
Statements and related Notes included in this Quarterly Report on Form 10-Q and
the Consolidated Financial Statements and Notes included in our Annual Report on
Form 10-K for the year ended December 31, 2021. This discussion contains
forward-looking statements that involve risks and uncertainties. MoneyGram's
actual results could differ materially from those anticipated due to various
risks and factors discussed above under Cautionary Statements Regarding
Forward-Looking Statements and elsewhere in this Quarterly Report on Form 10-Q
and in our 2021 Form 10-K, as well as any additional risk factors that may be
described in our other periodic filings with the SEC from time to time.

The comparisons presented in this MD&A refer to the same period in the prior year, unless otherwise noted. This MD&A is organized in the following sections:

•  Overview

•  Results of Operations

•  Liquidity and Capital Resources

•  Critical Accounting Policies and Estimates


MoneyGram is a global leader in cross-border P2P payments and money transfers.
Our consumer-centric capabilities enable the quick and affordable transfer of
money to family and friends around the world. Whether through online and mobile
platforms, integration with mobile wallets, kiosks, or any one of the hundreds
of thousands of agent locations in over 200 countries and territories, with over
100 now digitally enabled, the innovative MoneyGram platform connects consumers
in ways designed to be convenient for them. In the U.S. and in select countries
and territories, we also provide bill payment services, issue money orders and
process official checks. We primarily offer our services and products through
our Digital Channel and third-party agents. The Digital Channel includes MGO
(our direct-to-consumer business), digital partners, direct transfers to bank
accounts, mobile wallets and debit card solutions such as Visa Direct.
Third-party agents include retail chains, independent retailers, post offices
and financial institutions. MoneyGram also has a limited number of
Company-operated retail locations.

We manage our revenue and related commissions expense through two reporting
segments: GFT and FPP. The GFT segment provides global money transfer services
in more than 440,000 agent locations. Our global money transfer services are our
primary revenue driver, accounting for 92% of total revenue for both the three
and six months ended June 30, 2022. The GFT segment also provides bill payment
services to consumers through substantially all of our money transfer agent
locations in the U.S., at certain agent locations in select Canadian, Caribbean
and European countries and through our Digital Channel. The FPP segment provides
money order services to consumers through retail locations and financial
institutions located in the U.S. and Puerto Rico and provides official check
services to financial institutions in the U.S.

Business Environment

The competitive environment continues to change as both established players and
new, digital-only entrants work to innovate and deliver an affordable and
convenient customer experience to win market share. Our competitors include a
small number of large money transfer and bill payment providers, financial
institutions, banks and a number of small niche money transfer service providers
that serve select regions. We generally compete on the basis of customer
experience, price, agent commissions, brand awareness and convenience.

We continue to invest in innovative products and services, such as our leading
mobile app and integrations with mobile wallets and account deposit services, to
position the Company to meet consumer needs. Furthermore, our partnership with
Visa Direct provides consumers with additional choices on how to receive funds
across a broader number of countries. We believe that combining our cash and
digital capabilities enables us to differentiate against digital-only
competitors who are not able to serve a significant portion of the remittance
market that relies on cash.

As a leader in the evolution of digital P2P payments, we were the first company
to utilize blockchain technology at scale for cross-border payments. Given our
extensive global network, strong culture of fintech innovation, expertise in
compliance and API-driven infrastructure, we are well-positioned to lead
cross-border payment innovation.


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Recent Developments

On February 14, 2022, we entered into a Merger Agreement by and among the
Company, Parent and an affiliate of Madison Dearborn, and Merger Sub. The Merger
Agreement provides that, subject to the terms and conditions set forth in the
Merger Agreement, Merger Sub will merge with and into the Company. Following the
Merger the Company will become a subsidiary of Parent. At the effective time of
the Merger, each outstanding share of common stock will be automatically
canceled and converted into the right to receive $11.00 in cash. Consummation of
the Merger is subject to the satisfaction or, if permitted by law, waiver by
Parent, the Company or both of a number of conditions, including, among other
things, (a) approval of the Merger Agreement by the affirmative vote of the
holders of a majority of the Company's outstanding shares of common stock, (b)
expiration or termination of applicable waiting periods under the
Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended, (c) the
receipt of required approvals with respect to money transmitter licenses and
applicable foreign investment and competition laws, (d) the absence of any
material adverse effect on the Company's business and (e) other customary
closing conditions. The Merger Agreement contains certain termination rights for
the parties, including the right of the parties, subject to specified
limitations, to terminate the Merger Agreement if the Merger is not consummated
by February 13, 2023, although the End Date may be extended to May 14, 2023 in
certain circumstances to obtain required money transfer approvals.

On March 16, 2022, we announced that a final agreement has been reached to
settle its previously disclosed legacy enforcement matter with NYDFS through a
consent order. The Company paid a civil monetary penalty of $8.3 million to the
NYDFS and will undertake various reporting obligations. This payment is
consistent with the estimated amount that MoneyGram previously accrued in the
fourth quarter of 2021.

On March 11, 2022, MoneyGram and Stellar Development Foundation announced a new
partnership with Techstars, a global investment business that provides access to
capital, one-on-one mentorship and customized programming for entrepreneurs. The
program will recruit founders across the world who are focused on driving
technological innovation in areas such as blockchain and digital payments to
further streamline cross-border payments and support financial inclusion.

In the first half of 2022, the U.S. dollar strengthened significantly against
all major currencies. The impact was a reduction in the value of foreign-based
revenue as it is converted to our reporting currency, the U.S. dollar.

Anticipated Trends

This discussion of trends expected to impact our business in 2022 is based on
information presently available and reflects certain assumptions, including
assumptions regarding future economic conditions. Differences in actual economic
conditions compared with our assumptions could have a material impact on our
results. See Cautionary Statements Regarding Forward-Looking Statements,
Part II, Item 1A, Risk Factors of this Quarterly Report on Form 10-Q and Part I,
Item 1A, Risks Factors of our 2021 Form 10-K for additional factors that could
cause results to differ materially from those contemplated by the following
forward-looking statements.

Through 2022, we believe the industry will continue to see a number of trends,
including the growth of digital transactions, a competitive pricing environment,
continuing focus on customer experience and a broader trend towards potential
diversification of product and service offerings.

We also anticipate a US dollar strengthening as interest rates rise faster in the US compared to other industrialized countries, especially in Europe.

To position the Company to respond to these trends, our digital-first strategy
is creating tremendous value for consumers and the Company's strategy will
continue to focus on growing our digital business. To address this new and
evolving digital consumer, we expect to continue to invest in product innovation
as we look to go deeper and wider in our consumer-direct digital offerings. We
also plan to expand MGO to new countries, add new digital send partners and add
more wallets and account deposit offerings.

As we grow our digital business, we will also focus on maintaining our global
cash network. The cash receive network is important to millions of receivers
around the world who rely on cash to support the urgent needs of their families;
additionally, in many markets the cash network continues to provide benefit for
those consumers that need to send cash.

Additionally, in 2022 we plan to further execute our strategy to lead cross-border payment innovation and blockchain-enabled settlement through growing our partnership with the Stellar Development Foundation as well as through other initiatives and partnerships.

We continue monitoring the social, political, regulatory and economic
environment around the world and will consider taking actions as appropriate.
There could be adverse impacts to our revenues, earnings and cash flows should
the situation escalate beyond its current scope, including, among other
potential impacts, economic recessions in certain countries or globally due to
inflation and changes in the interest rate environment.

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We expect a high level of competition for agents and customers, along with
competitive pricing to be a continuous challenge through 2022. Currency
volatility, inflation, liquidity pressure on certain central banks, immigration
restrictions and continuing immobility of labor throughout the world may also
continue to impact our business. We anticipate continuing prioritization of our
operating cost structure as well as our transaction related expenses   and
expect to remain price competitive across our product line.

For our FPP segment, we expect the decline in overall paper-based transactions
to continue primarily due to continued gradual migration by customers to other
payment methods. Our investment revenue, which consists primarily of interest
income generated through the investment of cash balances received from the sale
of our FPP, is dependent on the prevailing short-term interest rate environment
in the United States. The Company will see a positive impact on its investment
revenue as U.S. money market rates rise in conjunction with actions by the
Federal Reserve.

COVID-19 Update

General Economic Conditions and MoneyGram Impact

The global spread and unprecedented impact of COVID-19 and its variants, is
complex and ever-evolving. In March 2020, the World Health Organization declared
COVID-19 a global pandemic and recommended extensive containment and mitigation
measures worldwide. The outbreak is global and has impacted all the countries in
which we do business. Since the outbreak, we have seen the profound effect it is
having on human health, the global economy and society at large. Public and
private sector policies aimed at reducing the transmission of COVID-19 have
varied significantly in different regions of the world, but have resulted in
travel restrictions as well as certain business closures across many of the
countries in which we operate. Multiple variants of COVID-19 combined with a
lack of vaccinations in many countries have resulted in new waves of infections
and new restrictions. These restrictions, combined with limitations on labor
mobility, often have an impact on the ability of consumers to transact at agent
locations, which can cause temporary reductions in remittance activity.

It is impossible to predict the scope and duration of the impact of the COVID-19
pandemic as the situation has been different on a country by country basis. The
impact of COVID-19 and its variants in 2022 and beyond will depend on the
duration and severity of economic conditions resulting from the crisis, its
impact on public health, immigration, public policy actions, vaccination rates
and expansion and duration of returns to lockdowns and shelter-in-place orders
by governments, as well as changes in consumer behavior over the long term.

We continue to place a priority on business continuity and contingency planning,
including for potential extended closures of any key agents or disruptions
related to our contractual counterparties that might arise as a result of
COVID-19. While disruptions in our service offerings have occurred from time to
time from temporary agent location closures, the inability of labor markets to
return to normal mobility can represent a longer impact on the Company. We
cannot reasonably estimate the potential impact or timing of those events, and
we may not be able to mitigate such impact.

Financial Measures and Key Metrics

This Quarterly Report on Form 10-Q includes financial information prepared in
accordance with U.S. GAAP as well as certain non-GAAP financial measures that we
use to assess our overall performance.

U.S. GAAP Measures - We utilize certain financial measures prepared in
accordance with U.S. GAAP to assess the Company's overall performance. These
measures include fee and other revenue, commissions and other fee expense, fee
and other revenue less commissions, gross profit, operating income and operating

Non-GAAP Measures - Generally, a non-GAAP financial measure is a numerical
measure of financial performance, financial position or cash flows that excludes
(or includes) amounts that are included in (or excluded from) the most directly
comparable measure calculated and presented in accordance with U.S. GAAP. The
non-GAAP financial measures should be viewed as a supplement to and not a
substitute for, financial measures presented in accordance with U.S. GAAP and
are not necessarily comparable with similarly named metrics of other companies.
We strongly encourage investors and stockholders to review our financial
statements and publicly-filed reports in their entirety and not to rely on any
single financial measure. We believe that the non-GAAP financial measures
enhance investors' understanding of our business and performance because they
are an indicator of the strength and performance of ongoing business operations.
The non-GAAP measures are commonly used as a basis for investors, analysts and
other interested parties to evaluate and compare the operating performance and
value of companies within our industry. They are also used by management in
reviewing results of operations, forecasting, allocating resources or
establishing employee incentive programs. The following are non-GAAP financial
measures we use to assess our overall performance:

EBITDA (Earnings before interest, taxes, depreciation and amortization, including agent signing bonus amortization).


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Adjusted EBITDA (EBITDA adjusted for certain significant items) – Adjusted EBITDA does not reflect cash requirements necessary to service interest or principal payments on our indebtedness or tax payments that may result in a reduction in cash available.

Adjusted Free Cash Flow (Adjusted EBITDA less cash interest, cash taxes, cash
payments for capital expenditures and cash payments for agent signing bonuses) -
Adjusted Free Cash Flow does not reflect cash payments related to the adjustment
of certain significant items in Adjusted EBITDA.


The following table is a summary of the results of operations:

                                                   Three Months Ended June 30,                 Six Months Ended June 30,
(Amounts in millions)                               2022                  2021                  2022                 2021
Fee and other revenue                         $        324.5$    327.3$       630.0$    635.4
Investment revenue                                       5.1                 2.0                    7.2                 4.0
Total revenue                                          329.6               329.3                  637.2               639.4
Cost of revenue
Commissions and other fee expense                      156.5               161.3                  305.2               311.2
Investment commissions expense                           2.4                 0.2                    2.8                 0.4
Direct transaction expense                              13.8                16.2                   26.1                31.4
Total cost of revenue                                  172.7               177.7                  334.1               343.0
Gross profit                                           156.9               151.6                  303.1               296.4
Operating expenses
Compensation and benefits                               59.3                59.0                  115.8               121.2
Transaction and operations support                      53.3                40.3                   98.4                83.7
Occupancy, equipment and supplies                       15.1                16.3                   29.6                31.8
Depreciation and amortization                           12.1                14.1                   24.3                29.4
Total operating expenses                               139.8               129.7                  268.1               266.1
Operating income                                        17.1                21.9                   35.0                30.3
Other expenses
Interest expense                                        12.1                22.5                   23.0                44.8
Loss on early extinguishment of debt                       -                10.3                      -                10.3
Other non-operating expense                              1.1                 0.8                    2.0                 1.8
Total other expenses                                    13.2                33.6                   25.0                56.9
Income (loss) before income taxes                        3.9               (11.7)                  10.0               (26.6)
Income tax expense (benefit)                             0.8                (0.6)                   1.8                (0.1)
Net income (loss)                             $          3.1          $    (11.1)         $         8.2          $    (26.5)


Revenue remained relatively flat for the three months ended June 30, 2022 and
revenue declined by $2.2 million for the six months ended June 30, 2022, due to
a decrease in GFT revenue of $5.8 million, partially offset by an increase in
FPP revenue of $3.6 million. See the "Segments Results" section below for
further discussions.

Cost of Revenue

Cost of revenue decreased by $5.0 million for the three months ended June
30, 2022, due to a decrease in GFT cost of revenue of $7.3 million offset by an
increase in FPP investment commissions expense of $2.3 million. Cost of revenue
decreased by $8.9 million for the six months ended June 30, 2022, due to a
decrease in GFT cost of revenue of $11.4 million offset by an increase in FPP
investment commissions expense of $2.5 million. See the "Segments Results"
section below for further discussions.

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Compensation and Benefits

Compensation and benefits remained relatively flat for the three months ended
June 30, 2022, and decreased by $5.4 million for the six months ended June 30,
2022, primarily due to the absence of severance costs in the current period.

Transaction and Operations Support

Transaction and operations support primarily includes marketing, professional
fees. customer care and other outside services, telecommunications, agent
support costs, including forms related to our products, non-compensation
employee costs, including training, travel and relocation costs, non-employee
director stock-based compensation expense, bank charges, the impact of non-U.S.
dollar exchange rate movements on our monetary transactions and assets and
liabilities denominated in a currency other than the U.S. dollar.

Transaction and operations support increased by $13.0 million and $14.7 million
for the three and six months ended June 30, 2022, respectively. The increase is
primarily due to a return to pre-pandemic levels of activities such as marketing
campaigns and business travel, combined with the impact of a strengthening U.S.
dollar against almost all major currencies resulting in foreign exchange losses
and an increase in bank charges resulting from fees on foreign exchange trades
and an increase in legal expenses due to Merger-related costs.

Occupancy, Equipment and Supplies

Occupancy, equipment and supplies expense includes facilities rent and
maintenance costs, software and equipment maintenance costs, freight and
delivery costs and supplies. Occupancy, equipment and supplies expense remained
relatively flat for the three months ended June 30, 2022 and decreased by $2.2
million for the six months ended June 30, 2022, primarily due to a decrease in
facilities costs as a result of a significant reduction of our global footprint
since providing our employees with the option of a work-from-home policy in the
second quarter of 2021.

Depreciation and Amortization

Depreciation and amortization includes depreciation on computer hardware and
software, agent signage, point of sale equipment, capitalized software
development costs, office furniture, equipment and leasehold improvements and
amortization of intangible assets. Depreciation and amortization decreased by
$2.0 million and $5.1 million for the three and six months ended June 30, 2022,
primarily due to a continued decrease in purchases of hardware and software as a
result of our migration to cloud computing and a decrease in office furniture
and equipment.

Other Expenses

Interest Expense decreased by $10.4 million and $21.8 million for the three and
six months ended June 30, 2022, respectively, primarily due to interest savings
as a result of our refinancing of high-cost debt in the third quarter of 2021
and the loss on early extinguishment of debt in the second quarter of 2021.

In the second quarter of 2021, the Company recorded a loss on early extinguishment of debt associated with the prepayment of $ 100.0 million in principal under the Second Lien Credit Agreement and the write-off of the related debt issuance costs and debt discounts.

Other non-operating expense remained relatively flat for the three and six months ended June 30, 2022.

Income Tax Expense

For the three months ended June 30, 2022, the Company recognized an income tax
expense of $0.8 million on pre-tax income of $3.9 million primarily due to a
decrease in valuation allowance, U.S. general business credits and recognition
of excess tax benefits on share-based compensation, all of which were partially
offset by non-deductible expenses, foreign taxes net of federal income tax
benefits, an increase in unrecognized tax benefits and state taxes.

For the six months ended June 30, 2022, the Company recognized an income tax
expense of $1.8 million on pre-tax income of $10.0 million primarily due to a
decrease in valuation allowance, recognition of excess tax benefits on
share-based compensation, U.S. general business credits and a recovery of state
taxes, all of which were partially offset by foreign taxes net of federal income
tax benefits, non-deductible expenses and an increase in unrecognized tax
benefits. The decrease in valuation allowance against our U.S. federal and state
deferred tax assets is due to the estimated use of $1.1 million of U.S. general
business credits and state net operating losses. As of June 30, 2022, the
Company remains in a three-year cumulative pre-tax loss position. However, it is
possible that the Company could be out of its current three-year cumulative loss
position within the next 12 months. The Company will maintain a valuation
allowance on applicable deferred tax assets until there is sufficient evidence
to support the reversal of any or all of these valuation allowances. The Company
continues to analyze the positive and negative evidence in determining the need
for a valuation allowance with respect to its deferred tax assets. It is
reasonably possible that, within the next 12 months, the valuation allowance
could be reduced if there is sufficient evidence indicating it is more likely
than not that all or a portion of the Company's deferred tax assets will be
realized. Release of the valuation

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allowance would result in the recognition of certain deferred tax assets and a
decrease to income tax expense for the period in which the release is recorded.
However, the exact timing and amount of the valuation allowance release are
subject to change based on the level of profitability achieved.

Segments Results


The following table sets forth our GFT segment results of operations for the three and six months ended June 30, 2022:

                                              Three Months Ended June 30,                         Six Months Ended June 30,
(Amounts in millions)                          2022                   2021                        2022                  2021
Money transfer revenue                   $        302.5$     304.9$       586.8$     590.3
Bill payment revenue                                9.6                 10.4                         18.9                 21.2
Total revenue                                     312.1                315.3                        605.7                611.5

Cost of revenue                                   170.2                177.5                        331.2                342.6
Gross profit                             $        141.9$     137.8$       274.5$     268.9

Money Transfer Revenue

Money transfer revenue decreased by $2.4 million and $3.5 million for the three
and six months ended June 30, 2022, primarily due to a U.S. dollar strengthening
against major currencies, pricing pressure due to increased competition and the
impact of inflation on the discretionary income of our consumers.

Bill Payment Revenue

Bill payment revenue decreased by $ 0.8 million and $ 2.3 million for the three and six months ended June 30, 2022respectively, due to lower transactions.

Cost of Revenue

Cost of revenue decreased by $7.3 million and $11.4 million for the three and
six months ended June 30, 2022, respectively, primarily due to a decrease in
commissions and other fee expense driven by lower rates in commissions
associated with both MGO and walk-in business.


The following table sets forth our FPP segment results of operations:

                                                    Three Months Ended June 30,                       Six Months Ended June 30,
(Amounts in millions)                                 2022                  2021                       2022                  2021
Money order revenue                            $          10.6          $    10.6                $         21.1          $    21.0
Official check revenue                                     6.9                3.4                          10.4                6.9
Total revenue                                             17.5               14.0                          31.5               27.9

Investment commissions expense                             2.5                0.2                           2.9                0.4
Gross profit                                   $          15.0          $    13.8                $         28.6          $    27.5

Money Order Revenue

Money order revenue remained flat for the three and six months ended June 30, 2022.

Official check revenue

Official check revenue increased by $3.5 million for the three and six months
ended June 30, 2022, primarily due to an increase in investment revenue as a
result of interest rate hikes by the federal reserve in response to the high
inflation environment.

Investment Commissions Expense

Investment commissions expense is calculated as a percentage of Investment Revenue. In periods of extremely low interest rates, it is possible for commissions to be at or close to zero, resulting in abnormally high gross margin.


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Investment commissions expense increased by $ 2.3 million and $ 2.5 million for the three and six months ended June 30, 2022respectively, due to higher interest rates.

EBITDA, Adjusted EBITDA and Adjusted Free Cash Flow (Non-GAAP Measures)

The following table is a reconciliation of our non-GAAP financial measures to the related US GAAP financial measures:

                                                    Three Months Ended June 30,                     Six Months Ended June 30,
(Amounts in millions, except percentages)             2022                 2021                      2022                 2021
Income (loss) before income taxes                $        3.9$   (11.7)$       10.0$   (26.6)
Interest expense                                         12.1               22.5                        23.0               44.8
Depreciation and amortization                            12.1               14.1                        24.3               29.4
Signing bonus amortization                               13.5               14.7                        27.4               29.0
EBITDA                                                   41.6               39.6                        84.7               76.6
Significant items impacting EBITDA:
Stock-based, contingent, incentive
compensation and other                                    5.4                1.5                         8.2                3.3
Merger-related costs                                      1.1                  -                         4.8                  -
Severance and related costs                               1.0                  -                         1.0                0.2
Legal and contingent matters                              0.7               (0.1)                        1.3                  -
Restructuring and reorganization costs                    0.3                2.2                        (1.0)               8.1
Direct monitor costs                                     (0.1)               1.1                           -                4.9
Loss on early extinguishment of debt                        -               10.3                           -               10.3
Compliance enhancement program                              -                0.2                           -                1.3

Adjusted EBITDA                                          50.0               54.8                        99.0              104.7

Cash payments for interest                                 (5.9)           (27.1)                        (22.5)           (39.0)
Cash (payments) refunds for taxes, net                     (3.0)            (1.5)                         (6.3)             1.2
Cash payments for capital expenditures                    (12.1)           (10.0)                        (22.4)           (21.2)
Cash payments for agent signing bonuses                    (6.9)            (9.7)                        (21.6)           (22.7)
Adjusted Free Cash Flow                          $          22.1       $     6.5                $          26.2       $    23.0

See “Results of Operations” and “Analysis of Cash Flows” sections for additional information regarding these changes.


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We have various resources available for purposes of managing liquidity and
capital needs, including our investment portfolio, credit facilities and letters
of credit. We refer to our cash and cash equivalents, settlement cash and cash
equivalents, interest-bearing deposits and available-for-sale interest-bearing
investments collectively as our "investment portfolio." The Company utilizes
cash and cash equivalents in various liquidity and capital assessments.

Cash and Cash Equivalents, Settlement Assets and Payment Service Obligations

The following table shows the components of the Company’s cash and cash equivalents and settlement assets:

(Amounts in millions)                       June 30, 2022       December 31, 2021
Cash and cash equivalents                  $        117.4      $            155.2
Settlement assets:
Settlement cash and cash equivalents       $      1,606.9      $          1,895.7
Receivables, net                                  1,050.8                   700.4
Interest-bearing investments                        993.6                   992.3
Available-for-sale investments                        2.8                     3.0
Total settlement assets                    $      3,654.1      $          3,591.4

Payment service obligations                $     (3,654.1)     $         (3,591.4)

Our primary sources of liquidity include cash flows generated by the sale of our
payment instruments, our cash and cash equivalents and interest-bearing deposit
balances and proceeds from our investment portfolio. Our primary operating
liquidity needs are related to the settlement of payment service obligations to
our agents and financial institution customers, general operating expenses and
debt service.

To meet our payment service obligations at all times, we must have sufficient
highly-liquid assets and be able to move funds globally on a timely basis. On
average, we receive in and pay out a similar amount of funds on a daily basis to
collect and settle the principal amount of our payment instruments sold and
related fees and commissions with our end-consumers and agents. This pattern of
cash flows allows us to settle our payment service obligations through existing
cash balances and ongoing cash generation rather than liquidating investments or
utilizing our Revolving Credit Facility. We have historically generated and
expect to continue generating, sufficient cash flows from daily operations to
fund ongoing operational needs.

We preposition cash in various countries and currencies to facilitate settlement
of transactions. We also maintain funding capacity beyond our daily operating
needs to provide a cushion through the normal fluctuations in our payment
service obligations, as well as to provide working capital for the operational
and growth requirements of our business. We believe we have sufficient liquid
assets and funding capacity to operate and grow our business for the next
12 months. Should our liquidity needs exceed our operating cash flows, we
believe that external financing sources, including availability under our
Revolving Credit Facility, will be sufficient to meet our anticipated funding

Cash and Cash Equivalents and Interest-bearing Investments

To ensure we maintain adequate liquidity to meet our payment service obligations
at all times, we keep a significant portion of our investment portfolio in cash
and cash equivalents and interest-bearing investments at financial institutions
rated A- or better by two of the following three rating agencies: Moody's, S&P
and Fitch; and in AAA rated U.S. government money market funds. If the rating
agencies have split ratings, the Company uses the lower of the highest two out
of three ratings across the agencies for disclosure purposes. If the institution
has only two ratings, the Company uses the lower of the two ratings for
disclosure purposes. As of June 30, 2022, cash and cash equivalents (including
unrestricted and settlement cash and cash equivalents) and interest-bearing
investments totaled $2.7 billion. Cash and cash equivalents consist of
interest-bearing deposit accounts, non-interest-bearing transaction accounts and
money market securities; interest-bearing investments consist of time deposits
and certificates of deposit with maturities of up to 24 months.

Available-for-sale Investments

Our investment portfolio includes $2.8 million of available-for-sale investments
as of June 30, 2022. U.S. government agency residential mortgage-backed
securities comprise $1.9 million of our available-for-sale investments, while
asset-backed and other securities compose the remaining $0.9 million.

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Clearing and Cash Management Banks

We collect and disburse money through a network of clearing and cash management
banks. The relationships with these banks are a critical component of our
ability to maintain our global active funding requirements on a timely basis. In
the U.S., we have agreements with four active clearing banks that provide
clearing and processing functions for official checks, money orders and other
draft instruments. We believe that this network of banks provides sufficient
capacity to handle the current and projected volumes of items for these
services. We also maintain relationships with a variety of domestic and
international cash management banks for electronic funds transfer and wire
transfer services used in the movement of consumer funds and agent settlements.

Term Loan and Notes

The following is a summary of the Company’s outstanding debt:

                                                                                             December 31,
(Amounts in millions, except percentages)                             June 30, 2022              2021
Term Loan due 2026                                                  $        382.0$      384.0
5.38% Senior Secured Notes due 2026                                          415.0                 415.0
Total debt at face value                                                     797.0                 799.0
Unamortized debt issuance costs and debt discounts                           (11.0)                (12.3)
Total debt, net                                                     $        786.0$      786.7

As of June 30, 2022, the Company had no borrowings and no outstanding letters of
credit under its Revolving Credit Facility and had $40.0 million of
availability. See   Note 6 -     Debt   of the Notes to the Unaudited Condensed
Consolidated Financial Statements for additional disclosure related to the
credit facilities.

© Edgar Online, source Glimpses


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