(Bloomberg) -- MoneyGram International Inc. failed to convince lenders to slash its borrowing costs on a leveraged loan before a deadline Thursday, according to people with knowledge of the matter.

A group of banks led by Goldman Sachs Group Inc. is attempting to lower the interest rate margin on the company’s $398 million loan maturing in 2030 to as low as 400 basis points over the benchmark rate, a different person with knowledge of the matter said last week. They also asked not to be identified discussing a private matter. The new loan is offered at 99.75 cents on the dollar.

The current margin on the loan, which helped finance Madison Dearborn Partners’ leveraged buyout of MoneyGram a year ago, is 550 basis points over the benchmark. As a result, the proposed repricing would lower the company’s interest-rate expenses significantly.

MoneyGram Joins Repricing Bonanza With $398 Million Loan

The US leveraged loan market has been dominated this year by companies repricing or refinancing existing borrowings. Investor demand for floating-rate securities has helped push prices in the secondary market to two-year highs, creating an environment for riskier borrowers to cut interest costs through revising terms on existing debt.

The loan MoneyGram is seeking to reprice has rallied to above par, after initially being sold at a steep discounted price of 83 cents.

While it’s not unusual for loan deadlines to be missed and deals do price after those initial target dates, most transactions have gone smoothly this week amid a surge in issuance. The US leveraged loan market has had one of its busiest weeks this year, with at least $56 billion of deals pricing ahead of the Memorial Day holiday weekend, with commitments on roughly two dozen deals due on Thursday alone.

Representatives for Madison Dearborn and Goldman Sachs declined to comment, while a representative for MoneyGram didn’t immediately respond to requests for comment.

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