NORTH CANTON, Ohio,
Aug. 13, 2018 /PRNewswire/ --
Diebold Nixdorf (NYSE: DBD) ("the
Company") today issued a statement on the following
developments:
Status of Discussions with Lenders
The Company is in constructive and productive discussions with
its lenders regarding its future financial flexibility and expects
to reach a resolution in the near-term. The Company will disclose
additional details in due course.
Developments relating to the Company's stake in Diebold
Nixdorf AG
At the end of July 2018, the
Company held, through Diebold KGaA, 77.1% of the outstanding shares
of Diebold Nixdorf AG. In August
2018, Diebold Nixdorf AG shareholders, as per their right
under the terms of the Company's acquisition of Diebold Nixdorf AG,
have requested redemptions for approximately 3.8 million
shares (corresponding to 12.9% of the outstanding shares) with a
value of approximately $255
million. The Company utilized cash on hand and borrowings
under its Revolving Facility to fund $160
million of the initial obligation and will settle the
additional obligation later this week, in line with current
settlement practices, with cash on hand and borrowings under the
Revolving Facility.
Following this activity, Diebold
Nixdorf will own in excess of 90% of the outstanding shares
of Diebold Nixdorf AG. Such shareholding entitles the
Company, at the Company's election, to initiate the process to
merge Diebold Nixdorf AG with and into Diebold KGaA, a significant
final step in the integration of the Company's German
subsidiaries. When initiated, this elective process includes
the Company's acquisition of all remaining shares of Diebold
Nixdorf AG, which the Company expects to initiate expeditiously in
future quarters.
The Company's annual dividend payments to Diebold Nixdorf AG
minority shareholders have been reduced by approximately
$12 million in light of the shares
tendered since the end of July and the remaining dividend payments
of approximately $10 million will be
eliminated once all shares have been acquired.
Monetization of Company Owned Life Insurance for $70 million
On August 9, 2018, the Company
received cash proceeds of approximately $70
million from the monetization of its investment in company
owned life insurance contracts to further bolster liquidity.
About Diebold Nixdorf
Diebold Nixdorf, Incorporated
(NYSE: DBD) is a world leader in enabling connected commerce for
millions of consumers each day across the financial and retail
industries. Its software-defined solutions bridge the physical and
digital worlds of cash and consumer transactions conveniently,
securely and efficiently. As an innovation partner for nearly all
of the world's top 100 financial institutions and a majority of the
top 25 global retailers, Diebold
Nixdorf delivers unparalleled services and technology that
are essential to evolve in an 'always on' and changing consumer
landscape. The company has a presence in more than 130 countries
with approximately 23,000 employees worldwide. Visit
www.DieboldNixdorf.com for more information.
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SOURCE Diebold Nixdorf