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Diebold reaches next milestone in Wincor acquisition

The company has announced details of Term Loan B financing, which will go toward financing the cash portion of its purchase of Wincor Nixdorf.

April 14, 2016

Diebold Inc. last week announced the completion of allocation and pricing of its previously disclosed Term Loan B facility, provided under a credit agreement intended to partially finance its acquisition of Wincor Nixdorf AG.

According to a press release, Diebold expects that the Term Loan B facility will consist of a $1 billion U.S. dollar-denominated tranche that will bear interest at LIBOR plus an applicable margin of 4.5 percent (or, at Diebold's option, prime plus an applicable margin of 3.5 percent), and a 350 million ($399 million) euro-denominated tranche that will bear interest at EURIBOR plus an applicable margin of 4.25 percent, and to enter into an amendment to the credit agreement in respect of the foregoing within 31 days of the pricing of the Term Loan B facility.

Each tranche is expected to be funded at 99 percent of par, the release said.

"Today, we have reached a major milestone with respect to our planned transaction with Wincor Nixdorf," said Chris Chapman, Diebold senior vice president and CFO. "We achieved a borrowing rate in line with our expectations — which currently equates to a mid-5 percent weighted average — by upsizing the Term Loan B facility by approximately $100 million and reducing our planned high-yield offering by a similar amount. I am pleased to reach this milestone and excited as we target closing our transaction in the summer of 2016."

Diebold intends to use the borrowings from the Term Loan B facility, along with a portion of the cash proceeds from the completed sale of its North America electronic security business and other previously disclosed financing elements, to pay the cash portion of the consideration for tendered Wincor Nixdorf shares, to purchase additional Wincor Nixdorf ordinary shares, to refinance a portion of its and Wincor Nixdorf's debt, to pay related fees and expenses, and for general corporate purposes. 

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