Shares of cash-strapped Diebold Nixdorf Inc. jumped 12% Monday morning in the wake of news from the ATM manufacturer and financial and payment software provider that it had secured a commitment for a $650 million loan, easing the liquidity problems that it had encountered in recent weeks.
North Canton, Ohio-based Diebold’s current problems started after it announced an unexpected $138.5 million second-quarter loss Aug. 1. That forced the company to draw on its cash reserves and credit line to buy stock held by holdout shareholders of Wincor Nixdorf, the German ATM company that the former Diebold Inc. acquired in 2016, according to reports on the financial wires.
The loan commitment is coming from “two leading institutional lenders” with JPMorgan Chase & Co. serving as the administrative agent, according to the Diebold Nixdorf announcement. The company said it will use the proceeds to buy out the remaining Wincor Nixdorf shareholders, repay debt, and carry out its operational improvement plan. That plan includes reducing its number of ATM models by 30%.