Diebold Nixdorf Announces Commencement of Notes Offering

Diebold Nixdorf, Incorporated (NYSE: DBD) has disclosed in a recent 8-K filing that it has initiated a substantial offering of senior secured notes due 2030. The company intends to offer $950.0 million in aggregate principal amount through this Notes Offering. This initiative is being undertaken in compliance with exemptions from the registration requirements of the Securities Act of 1933 and is contingent upon various market conditions and the formalization of the New Revolving Credit Facility.

With the net proceeds raised from this offering, in conjunction with borrowings under the New Revolving Credit Facility and existing cash reserves, Diebold Nixdorf plans to execute several significant financial activities. These include repurchasing outstanding term loans under the Exit Facility, settling borrowings from the Existing Revolving Credit Facility, and attending to associated charges and expenses. Any surplus funds derived will be allocated towards general corporate uses, potentially contributing to debt repayment.

The senior secured notes, once issued, will represent obligations of Diebold Nixdorf and will be supported by guarantees from subsidiaries under specific agreements. The issuance is expected to be secured by primary liens on a wide range of tangible and intangible assets, subject to predefined exclusions and allowed encumbrances. This collateral will also serve as security for the New Revolving Credit Facility in a pari passu capacity.

It is important to note that the offering detailed in this announcement exclusively targets qualified institutional buyers or non-U.S. persons and is exempt from registration requirements. The securities being offered have neither been nor will be registered under the Securities Act, necessitating compliance with certain exemptions and foreign securities laws for United States sales.

Additionally, Diebold Nixdorf aims to execute a Dutch auction, intended to repurchase up to the full $1,050.0 million aggregate principal amount of term loans due under the senior secured term loan credit facility. This auction is expected to conclude shortly after the Notes Offering.

These initiatives, encompassing the Notes Offering, the Dutch Auction, the Exit Credit Agreement Amendment, and the New Credit Agreement, are collectively referred to as the “Refinancing Transactions.” While the company remains optimistic about these strategic financial moves, it has highlighted numerous risks and uncertainties in its disclosure. These factors underscore the importance of cautious evaluation when considering the forward-looking nature of the company’s statements.

Investors and the financial market are advised to exercise diligence in assessing the disclosed information and its potential implications on Diebold Nixdorf’s future performance and financial landscape. The company has emphasized that the outlined transactions are still subject to various conditions and that uncertainties could impact the planned outcomes.

This article was generated by an automated content engine and was reviewed by a human editor prior to publication. For additional information, read Diebold Nixdorf’s 8K filing here.

Diebold Nixdorf Company Profile

Diebold Nixdorf, Incorporated engages in the automating, digitizing, and transforming the way people bank and shop worldwide. It operates through two segments, Banking and Retail. The company offers cash recyclers and dispensers, intelligent deposit terminals, teller automation tools, and kiosk technologies, as well as physical security solutions; and front-end applications for consumer connection points and back-end platforms that manage channel transactions, operations and integration, and facilitate omnichannel transactions, endpoint monitoring, remote asset management, customer marketing, merchandise management, and analytics.