Diebold Nixdorf receives $650m capital commitment
Financial services, software, and hardware provider Diebold Nixdorf secured a commitment of $650 million in capital this week. The loan is coming from two unidentified, institutional lenders and repayment is due in August 2022, reports Julie Muhn at Finovate.
The Ohio-based company will use the loan to acquire remaining shares of Diebold Nixdorf, repay debt, and fund its DN Now operational improvement plan. The loan is expected to be completed within the coming days.
As FinTech Futures reported earlier this month, the firm hired financial advisers as it seeks a sale.
Diebold shares have been in a freefall since forecasting lower-than-expected EBITDA earlier this month and revealing it would use cash on hand and tap its revolving credit line to buy $160 million of Wincor Nixdorf shares, the German company Diebold bought in 2016 for $1.8 billion.
Diebold Nixdorf says it may be experiencing a “potential liquidity crisis” and that it is “trying to negotiate easier terms with its lenders, the second change in four months, to allow for greater leverage in its debt covenants”.
Founded in 1859, the company is partnered with almost all of the world’s top 100 banks and most of the top 25 global retailers.