Diebold amends credit facility for new term loan, modified pricing

By Marisa Wong

Madison, Wis., June 24 – Diebold, Inc. amended its credit agreement dated June 30, 2011 with JPMorgan Chase Bank, NA as administrative agent to add a new $230 million term loan A, according to an 8-K filing with the Securities and Exchange Commission.

Diebold entered into the second amendment on June 19.

The term loan A has a scheduled maturity of Aug. 26, 2019, with quarterly amortization payments beginning on Sept. 30.

The amended credit agreement continues to provide a revolving credit facility with availability of up to $520 million.

The amendment replaced the net debt to net capitalization financial covenant under the existing facility with a net debt to EBITDA financial covenant and, accordingly, modified the facility fee and interest rate pricing grid to be based on the new financial covenant.

Under the amended pricing grid, revolving loans will bear interest at Libor plus 110 basis points to 170 bps, and the term loan A will bear interest at Libor plus 125 bps to 200 bps, in each case, depending on the company’s net leverage ratio. However, until Aug. 19 the loans will bear interest at Libor plus 150 bps and Libor plus 175 bps, respectively.

Based in North Canton, Ohio, Diebold provides services, software and security systems to the financial, commercial and retail markets.

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