Diebold Nixdorf confirms closing on $55 million of additional liquidity

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Mar 21, 2023, 16:02 ET

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
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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.

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