Diebold Nixdorf, a global leader in driving connected commerce for the banking and retail industries, announced the completion of several transactions that significantly extend debt maturities, provide sufficient liquidity as the company enters the latter stages of its DN Now transformation and reduce the company’s expected cash interest and cash taxes for 2020.
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Jeffrey Rutherford, Diebold Nixdorf senior vice president and chief financial officer, said: “Our successful refinancing was made possible by our improving financial performance, the resiliency and enduring nature of our business and our constructive relationships with lenders. Demand for our senior secured notes was strong as both offerings were oversubscribed from a mix of new and existing investors. These actions significantly extend our debt maturities, while providing sufficient liquidity as we complete our DN Now transformation. Following this transaction, our capital allocation priorities remain centered on the completion of a majority of our transformation and restructuring spend by the end of 2020, de-levering the balance sheet and investing in future growth opportunities.”
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Following these transactions, total company indebtedness remains materially unchanged since March 31, 2020, while cash interest for 2020 is expected to decline to approximately $150 million due to the timing of interest payments. Cash tax payments for 2020 are expected to decline to approximately $40 million. For 2021, the company expects cash interest payments will be in-line with 2019 levels at approximately $180 million.
The company issued approximately $1.1 billion aggregate principal amount of senior secured notes consisting of $700 million aggregate principal amount of Senior Secured Notes due 2025 and approximately €350 million aggregate principal amount of Senior Secured Notes due 2025. Net proceeds from the offerings, along with cash on hand, is being used to repay a portion of the amounts outstanding under the company’s senior credit facility, including all amounts outstanding under the term loan A facility and term loan A-1 facility and approximately $194 million of revolving credit loans, including all of the revolving credit loans due in December 2020, as well as all related fees and expenses. The company also amended its senior credit facility to, among other things, extend the maturity of approximately $330 million of its revolving credit commitments and revolving credit loans from April 30, 2022 to July 20, 2023. The company’s current capital structure includes no significant maturities until 2023.
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