DieboldInc. said April 6 that the allocation and pricing of its term loanB facility was completed.
The loan facility was provided under the credit agreement intendedto provide part of the financing for Diebold's potential of .
Diebold expects that the facility will consist of a $1billion U.S. dollar-denominated tranche that will bear interest at LIBOR plusan applicable margin of 4.50%, or prime plus an applicable margin of 3.50%, anda €350 million euro-denominated tranche that will bear interest at EURIBOR plusan applicable margin of 4.25%, and to enter into an amendment to the creditagreement in respect of the foregoing within 31 days of the pricing of thefacility. Each tranche is expected to be funded at 99% of par.
The company secured a borrowing rate equal to a mid-5%weighted average as it upsized the term loan B facility by approximately $100million and lowered its planned high-yield offering by a similar amount, SeniorVice President and CFO Christopher Chapman said in a statement. The company is targetingto close the transaction in the summer.
Diebold intends to use the borrowings from the facility,along with a portion of the cash proceeds from the completed sale of its NorthAmerica electronic security business and other previously disclosed financingelements, to pay the cash portion of the consideration for tendered WincorNixdorf shares, to purchase additional Wincor Nixdorf ordinary shares, torefinance a portion of its and Wincor Nixdorf's debt, to pay related fees andexpenses, and for general corporate purposes.