Diebold Nixdorf Inc (NYSE: DBD) is having a strong start to the trading session this morning after releasing an update surrounding discussions with its lenders. Of course, the update was a positive one, which excited investors who are now sending the stock upward in the market. Today, we’ll talk about:
- The update;
- what we’re seeing from DBD as a result; and
- what we’ll be watching for ahead.
DBD Announces Update
As mentioned above, Diebold Nixdorf is having a strong start to the trading session this morning after the company provided an update with regard to discussions it is in with its lenders. In a press release issued early this morning, the company announced that it is in constructive and productive discussions with its lenders. These discussions surround the future financial flexibility of agreements and the company said it expects to reach a resolution in the near-term.
DBD also provided developments with regard to its stake in Diebold Nixdorf AG. As of the end of July, the company said that it owned 77.1% of the outstanding shares of Diebold Nixdorf AG. The company said that under the terms of the Company’s acquisition of Diebold Nixdorf AG, it has requested redemptions for approximately 3.8 million shares with a value of about $255 million. The company said that it used cash on hand and borrowings under its revolving credit facility to fund $160 million of the initial obligation and will settle the additional obligation later this week.
Also, DBD said that it has reduced its dividend payments to Diebold Nixdorf AG minority shareholders by about $12 million in light of the shares tendered since the end of July and the remaining dividend payments of about $10 million will be eliminated once all shares have been acquired.
Finally, DBD said that it received $70 million in cash from the monetization of its investment in company owned life insurance contracts to further bolster liquidity.
What We’re Seeing From The Stock
With such positive news being released by Diebold Nixdorf, it only makes sense that excited investors are pushing the stock upward. After all, today’s release outlined great work toward a more solid financial foundation. As is almost always the case, our partners at Trade Ideas were the first to alert us to the gains. Currently (10:39), DBD is trading at $4.25 per share after a gain of $0.30 per share or 7.59% thus far today.
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What We’ll Be Watching For Ahead
Moving forward, the CNA Finance team will continue to keep a close eye on DBD. In particular, we’re interested in following the story surrounding the company’s continued work to strengthen its financial position and the coming updates with regard to the lender discussions. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!
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