Moody’s applies B2 to Diebold notes

Moody's Investors Service said it assigned a B2 (LGD-5) rating to Diebold, Inc.'s $500 million senior unsecured note offering.

All other ratings and the outlook remain unchanged.

The notes, in conjunction with previously raised debt and cash on hand will be used to fund the roughly $1.8 billion business combination of Wincor Nixdorf AG, and to refinance existing debt at both companies, settle transactional fees, and integration costs.

The pending combination of Diebold and Wincor will create the world's largest manufacturer of automated teller machines with a broad global presence and wide customer diversification. The combined company will have an installed base of about 1 million ATMs, and will also serve 24 of the top 25 retailers in Europe with its retail check-out products.

Moody's said it believes that the transaction is highly complementary from a geographic and product standpoint, with the expectation that the consolidation of the hardware portfolio will result in significant development and manufacturing savings in the future.

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