First-in-last-out financing will facilitate near-term
operating priorities; Company continues to engage in constructive
and collaborative dialogue with lenders regarding longer-term
capital needs
HUDSON,
Ohio, March 21, 2023 /PRNewswire/ --
Diebold Nixdorf (NYSE: DBD) today
announced an amendment to its asset-based credit facility (ABL) to
add a new $55 million
first-in-last-out term loan (FILO) tranche. Additionally,
Diebold Nixdorf's ABL lenders have
agreed to certain other modifications and waivers to the ABL
facility, allowing them to continue to work together
collaboratively to develop an updated borrowing framework. The
existing $250 million
non-FILO ABL tranche commitments
remain in place.
Diebold Nixdorf recently
disclosed in its annual 10-K that, despite a challenging
macroeconomic environment, the company recorded $3.46 billion of revenue in 2022 and entered 2023
with a backlog of approximately $1.47
billion – demonstrating strong demand for its Banking and
Retail solutions, specifically ATMs and self-checkout (SCO)
products. Also, the company recently released a brief financial
update that shows the company is exhibiting strong performance and
is on track to achieve its first quarter 2023 revenue target. ATM
and SCO shipments are expected to increase in the first half of
2023 by approximately 14% and 51%, respectively, compared to the
first half of last year. At this time, expected 2023 first quarter
revenue of approximately $835 million
would represent about 6% growth compared with the same period last
year.
Octavio Marquez, Diebold Nixdorf chairman, president and chief
executive officer, said: "We are pleased to have secured the
FILO loan to provide financing for our near-term priorities. We
will continue to partner with our lenders to develop long-term
improvements to our capital structure which will better support our
operating model and the cycles of our business. We continue to take
steps to improve our business by becoming more agile and better
equipped to navigate global macroeconomic impacts. Our solution set
is as robust as it ever has been, and we intend to accelerate our
leadership in core areas to deliver profitable and sustainable
growth."
Diebold Nixdorf is filing
additional details related to the FILO in an 8-K filing with the
Securities and Exchange Commission.
About Diebold Nixdorf
Diebold Nixdorf, Incorporated (NYSE: DBD) is a
world leader in enabling connected commerce. We automate, digitize
and transform the way people bank and shop. As a partner to the
majority of the world's top 100 financial institutions and top 25
global retailers, our integrated solutions connect digital and
physical channels conveniently, securely and efficiently for
millions of consumers each day. The company has a presence in more
than 100 countries with approximately 21,000 employees worldwide.
Visit www.DieboldNixdorf.com for more information.
Twitter: @DieboldNixdorf
LinkedIn: www.linkedin.com/company/diebold
Facebook: www.facebook.com/DieboldNixdorf
YouTube: www.youtube.com/dieboldnixdorf
Forward-Looking Statements
This press release contains
statements that are not historical information and are
"forward-looking statements" within the meaning of the Private
Securities Litigation Reform Act of 1995. Forward-looking
statements give current expectations or forecasts of future events
and are not guarantees of future performance.
Statements can generally be identified as forward looking
because they include words such as "believes," "anticipates,"
"expects," "intends," "plans," "will," "estimates," "potential,"
"target," "predict," "project," "seek," and variations thereof or
"could," "should" or words of similar meaning. Statements that
describe the company's future plans, objectives or goals are also
forward-looking statements, which reflect the current views of the
company with respect to future events and are subject to
assumptions, risks and uncertainties that could cause actual
results to differ materially. Although the company believes that
these forward-looking statements are based upon reasonable
assumptions regarding, among other things, the economy, its
knowledge of its business, and key performance indicators that
impact the company, these forward-looking statements involve risks,
uncertainties and other factors that may cause actual results to
differ materially from those expressed in or implied by the
forward-looking statements.
Readers are cautioned not to place undue reliance on these
forward-looking statements, which speak only as of the date
hereof.
The factors that may affect the company's results include, among
others:
- our ability to successfully complete the transactions
contemplated by the Exchange Offer, including satisfaction of any
conditions prescribed therein;
- our ability to raise necessary equity capital to pay the legacy
2024 Senior Notes at maturity if there is insufficient
participation in the Exchange Offer;
- the overall impact of the global supply chain complexities on
the company and its business, including delays in sourcing key
components as well as longer transport times, especially for
container ships and U.S. trucking, given the company's reliance on
suppliers, subcontractors and availability of raw materials and
other components;
- our ability to successfully convert our backlog into sales,
including our ability to overcome supply chain and liquidity
challenges;
- the ultimate impact of the ongoing COVID-19 pandemic and other
public health emergencies, including further adverse effects to the
company's supply chain, maintenance of increased order backlog, and
the effects of any COVID-19 related cancellations;
- the company's ability to successfully meet its cost-reduction
goals and continue to achieve benefits from its cost-reduction
initiatives and other strategic initiatives, such as the current
$150m+ cost savings plan;
- the success of the company's new products, including its DN
Series line and EASY family of retail checkout solutions, and
electronic vehicle charging service business;
- the impact of a cybersecurity breach or operational failure on
the company's business;
- the company's ability to generate sufficient cash to service
its debt or to comply with the covenants contained in the
agreements governing its debt and, if applicable, to successfully
refinance its debt in the future;
- the company's ability to attract, retain and motivate key
employees;
- the company's reliance on suppliers, subcontractors and
availability of raw materials and other components;
- changes in the company's intention to further repatriate cash
and cash equivalents and short-term investments residing in
international tax jurisdictions, which could negatively impact
foreign and domestic taxes;
- the company's success in divesting, reorganizing or exiting
non-core and/or non-accretive businesses and its ability to
successfully manage acquisitions, divestitures, and alliances;
- the ultimate outcome of the appraisal proceedings initiated in
connection with the implementation of the Domination and Profit
Loss Transfer Agreement with the former Diebold Nixdorf AG (which
was dismissed in the company's favor at the lower court level in
May 2022) and the
merger/squeeze-out;
- the impact of market and economic conditions, including the
bankruptcies, restructuring or consolidations of financial
institutions, which could reduce the company's customer base and/or
adversely affect its customers' ability to make capital
expenditures, as well as adversely impact the availability and cost
of credit;
- the impact of competitive pressures, including pricing
pressures and technological developments;
- changes in political, economic or other factors such as
currency exchange rates, inflation rates (including the impact of
possible currency devaluations in countries experiencing high
inflation rates), recessionary or expansive trends, hostilities or
conflicts (including the conflict between Russia and Ukraine), disruption in energy supply, taxes
and regulations and laws affecting the worldwide business in each
of the company's operations;
- the company's ability to maintain effective internal
controls;
- unanticipated litigation, claims or assessments, as well as the
outcome/impact of any current/pending litigation, claims or
assessments;
- the effect of changes in law and regulations or the manner of
enforcement in the U.S. and internationally and the company's
ability to comply with government regulations; and
- other factors included in the company's filings with the U.S.
Securities and Exchange Commission (the "SEC"), including its
Annual Report on Form 10-K for the year ended December 31, 2022, its Quarterly Reports on Form
10-Q for the quarterly periods ended March
31, 2022, June 30, 2022, and
September 30, 2022, and in other
documents the company files with the SEC.
Except to the extent required by applicable law or regulation,
the company undertakes no obligation to update these
forward-looking statements to reflect future events or
circumstances or to reflect the occurrence of unanticipated
events.
You should consider these factors carefully in evaluating
forward-looking statements and are cautioned not to place undue
reliance on such statements.
DN-F
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SOURCE Diebold Nixdorf,
Incorporated