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NCR Voyix Announces Reduction of $1.84 Billion of Debt and Other Obligations and Termination of Trade Receivables Facility

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NCR Voyix (NYSE: VYX) has announced a significant reduction of $1.84 billion in its outstanding debt and other obligations, utilizing proceeds from the sale of its Digital Banking segment. The company has fully repaid its $192.5 million term loan facility and $200 million revolving credit facility. Additionally, NCR Voyix has conducted a tender offer for senior notes, repurchasing $1.195 billion of notes for $1.206 billion. The company has also terminated its $251.5 million trade receivables facility.

CFO Brian Webb-Walsh stated that this move has strengthened the company's balance sheet, reduced annual interest expenses, and improved its financial position. The anticipated interest expense on remaining bonds is expected to be approximately $55 million annually.

NCR Voyix (NYSE: VYX) ha annunciato una significativa riduzione di 1,84 miliardi di dollari nei suoi debiti e altre obbligazioni, utilizzando i proventi dalla vendita del suo segmento di Banking Digitale. L'azienda ha completamente rimborsato il suo prestito a termine di 192,5 milioni di dollari e la linea di credito revolving di 200 milioni di dollari. Inoltre, NCR Voyix ha effettuato un'offerta di acquisto per le note senior, riacquistando note per 1,195 miliardi di dollari a 1,206 miliardi di dollari. L'azienda ha anche chiuso la sua linea di credito per crediti commerciali di 251,5 milioni di dollari.

Il CFO Brian Webb-Walsh ha dichiarato che questa mossa ha rafforzato il bilancio dell'azienda, ridotto le spese per interessi annuali e migliorato la sua posizione finanziaria. Si prevede che le spese per interessi sui bond rimanenti siano circa 55 milioni di dollari all'anno.

NCR Voyix (NYSE: VYX) ha anunciado una reducción significativa de 1.84 mil millones de dólares en su deuda y otras obligaciones, utilizando los ingresos de la venta de su segmento de Banca Digital. La compañía ha reembolsado por completo su préstamo a plazo de 192.5 millones de dólares y su línea de crédito revolvente de 200 millones de dólares. Además, NCR Voyix ha llevado a cabo una oferta de compra para notas senior, recomprando notas por 1.195 mil millones de dólares a 1.206 mil millones de dólares. La compañía también ha terminado su línea de crédito para cuentas por cobrar comerciales de 251.5 millones de dólares.

El CFO Brian Webb-Walsh declaró que este movimiento ha fortalecido el balance de la compañía, reducido los gastos de intereses anuales y mejorado su posición financiera. Se espera que el gasto de intereses sobre los bonos restantes sea aproximadamente de 55 millones de dólares anualmente.

NCR Voyix (NYSE: VYX)는 디지털 뱅킹 부문의 매각 수익을 활용하여 18.4억 달러의 부채 및 기타 의무를 크게 줄였다고 발표했습니다. 이 회사는 1억 9250만 달러의 만기 대출 금리를 완전히 상환했으며, 2억 달러의 회전 신용 시설도 상환했습니다. 또한 NCR Voyix는 선순위 노트에 대한 공개 매수 제안을 실시하여 11억 9500만 달러의 노트를 12억 60만 달러에 재매입했습니다. 이 회사는 2억 5150만 달러의 매출 채권 시설도 종료했습니다.

CFO인 Brian Webb-Walsh는 이 조치가 회사의 재무제표를 강화하고 연간 이자 비용을 줄이며 재무 상황을 개선했다고 밝혔습니다. 남아있는 채권에 대한 예상 이자 비용은 연간 약 5500만 달러로 예상됩니다.

NCR Voyix (NYSE: VYX) a annoncé une réduction significative de 1,84 milliard de dollars de sa dette et de ses autres obligations, en utilisant les produits de la vente de son segment de Banque Numérique. L'entreprise a entièrement remboursé son prêt à terme de 192,5 millions de dollars et sa ligne de crédit renouvelable de 200 millions de dollars. De plus, NCR Voyix a effectué une offre d'achat pour des obligations senior, rachetant des obligations pour 1,195 milliard de dollars pour 1,206 milliard de dollars. L'entreprise a également mis fin à sa ligne de crédit pour créances commerciales de 251,5 millions de dollars.

Le CFO Brian Webb-Walsh a déclaré que cette initiative a renforcé le bilan de l'entreprise, réduit les charges d'intérêts annuelles et amélioré sa position financière. Les charges d'intérêts anticipées sur les obligations restantes devraient être d'environ 55 millions de dollars par an.

NCR Voyix (NYSE: VYX) hat eine erhebliche Reduzierung von 1,84 Milliarden Dollar bei seinen ausstehenden Schulden und anderen Verpflichtungen angekündigt, indem es die Erlöse aus dem Verkauf seines Digital Banking-Segments verwendet hat. Das Unternehmen hat seine 192,5 Millionen Dollar Kreditlinie vollständig zurückgezahlt und auch die revolving Kreditlinie von 200 Millionen Dollar. Darüber hinaus hat NCR Voyix ein Tenderangebot für vorrangige Anleihen durchgeführt und Anleihen im Wert von 1,195 Milliarden Dollar für 1,206 Milliarden Dollar zurückgekauft. Das Unternehmen hat auch seine 251,5 Millionen Dollar Forderungsfinanzierung eingestellt.

CFO Brian Webb-Walsh erklärte, dass dieser Schritt die Bilanz des Unternehmens gestärkt, die jährlichen Zinsaufwendungen reduziert und die finanzielle Lage verbessert hat. Die erwarteten Zinsaufwendungen für verbleibende Anleihen werden voraussichtlich etwa 55 Millionen Dollar pro Jahr betragen.

Positive
  • Reduction of $1.84 billion in outstanding debt and obligations
  • Full repayment of $192.5 million term loan facility
  • Full repayment of $200 million revolving credit facility
  • Successful tender offer for $1.195 billion of senior notes
  • Termination of $251.5 million trade receivables facility
  • Strengthened balance sheet
  • Reduced annual interest expense and financing costs
  • Anticipated annual interest expense on remaining bonds reduced to approximately $55 million
Negative
  • Remaining $1.105 billion in outstanding indebtedness

Insights

This debt reduction is a significant positive development for NCR Voyix. The company has effectively utilized $1.84 billion from the Digital Banking Sale to substantially decrease its debt burden. This strategic move has several important implications:

  • Improved balance sheet strength: The debt reduction from $2.94 billion to $1.11 billion significantly enhances the company's financial flexibility.
  • Reduced interest expense: Annual interest costs are expected to decrease to approximately $55 million, which will positively impact profitability and cash flow.
  • Increased financial flexibility: With lower debt obligations, NCR Voyix now has more resources to invest in growth initiatives or return value to shareholders.
  • Enhanced credit profile: The improved debt-to-equity ratio may lead to better credit ratings and potentially lower borrowing costs in the future.

However, investors should note that while this is a positive development, the company still has $1.11 billion in outstanding debt. The market's reaction will likely depend on how effectively NCR Voyix leverages this improved financial position to drive growth and profitability in its remaining business segments.

ATLANTA--(BUSINESS WIRE)-- NCR Voyix Corporation (NYSE: VYX) (“NCR Voyix” or the “Company”) announced today the total reduction of $1.84 billion of its outstanding debt and other obligations, using a portion of the proceeds from the Company’s previously announced sale of its Digital Banking segment (the “Digital Banking Sale”).

A summary of the amounts repaid from proceeds from the Digital Banking Sale is included in the table below (in millions):

 

Amount Outstanding
Prior to Repayment

 

 

Amount Repaid

 

Amount Outstanding
as of 9/30/2024

Senior secured credit facility:

 

 

 

 

 

Term loan facility1

$

192.5

 

$

192.5

 

$

Revolving credit facility2

 

200.0

 

 

200.0

 

 

Tender offer for senior notes:

 

 

 

 

 

5.250% Senior Notes due 20303

 

450.0

 

 

397.9

 

 

52.1

5.125% Senior Notes due 20293

 

1,200.0

 

 

797.1

 

 

402.9

5.000% Senior Notes due 2028

 

650.0

 

 

 

 

650.0

Total Indebtedness:

 

2,692.5

 

 

1,587.5

 

 

1,105.0

Trade receivables facility4:

 

251.5

 

 

251.5

 

 

Total:

$

2,944.0

 

$

1,839.0

 

$

1,105.0

1 The Company paid an additional $1.4 million in accrued interest on the term loan facility.

2 The Company paid an additional $1.2 million in accrued interest on the revolving credit facility. The repayments did not reduce the $500 million of commitments under the revolving credit facility.

3 Amounts shown were used to settle the Company’s previously announced tender offer and are exclusive of accrued and unpaid interest. Pursuant to the terms of the tender offer the Company purchased $1,195.0 million of senior notes for an aggregate purchase price of $1,206.2 million, which included the tender offer consideration and accrued and unpaid interest.

4 The Company paid an additional $0.4 million in connection with terminating the trade receivables facility.

“The net proceeds from the sale of the Digital Banking business have greatly strengthened the balance sheet, while reducing our annual interest expense and financing costs, thus improving the Company’s financial position to drive greater shareholder value,” stated Brian Webb-Walsh, CFO, NCR Voyix. “Our anticipated interest expense on the remaining bonds will be approximately $55 million on an annualized basis.”

About NCR Voyix

NCR Voyix Corporation (NYSE: VYX) is a leading global provider of digital commerce solutions for the retail and restaurant industries. NCR Voyix empowers retailers and restaurants to transform their customers experiences through a comprehensive cloud-based platform and extensive services capabilities. Headquartered in Atlanta, Georgia, it serves customers in more than 30 countries.

Forward Looking Statements

This press release includes statements which may constitute forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, the accuracy of which are necessarily subject to risks, uncertainties, and assumptions as to future events that may not prove to be accurate. In some cases, you can identify forward-looking statements by the use of words such as “may,” “could,” “expect,” “intend,” “plan,” “target,” “seek,” “anticipate,” “believe,” “estimate,” “predict,” “potential,” or “continue” or the negative of these terms or other comparable terminology. These statements include, but are not limited to, express or implied forward-looking statements relating to our expectations regarding the Company's business, performance and financial condition following the debt pay down; any projections of earnings, revenue or other financial items or future financial position or sources of financing; any statements of the plans, strategies and objectives of management for future operations or business strategy; any statements regarding future economic conditions or performance. These statements are neither promises nor guarantees, but are subject to a variety of risks and uncertainties, many of which are beyond our control, which could cause actual results, levels of activity, performance or achievements to differ materially from those contemplated in these forward-looking statements. Investors and others are cautioned not to place undue reliance on forward-looking statements. There are a number of important factors that could cause actual results to differ materially from those expressed or implied by such forward-looking statements, including factors relating to: the Company’s indebtedness and other payment obligations, including the need to generate sufficient cash flows to fund operations; the impact of changes in the Company’s credit ratings or future increases in interest rates; the Company's ability to achieve some or all of the expected benefits of the sale of Digital Banking; and the other risks and uncertainties further described in the “Risk Factors” section of the Company’s most recent Annual Report on Form 10-K, and in the Company’s subsequent Quarterly Reports on Form 10-Q, as well as in the Company’s other reports filed with or furnished to the U.S. Securities and Exchange Commission, available at www.sec.gov. Forward-looking statements should be considered in light of these risks and uncertainties. These forward-looking statements speak only as of the date of this press release or as of the date to which they refer, and NCR Voyix assumes no obligation to update any forward-looking statements as a result of new information or future events or developments, except as required by law.

News Media Contact

media.relations@ncrvoyix.com

Investor Contact

Alan Katz

alan.katz@ncrvoyix.com

Source: NCR Voyix Corporation

FAQ

How much debt did NCR Voyix (VYX) reduce in its recent announcement?

NCR Voyix (VYX) announced a reduction of $1.84 billion in its outstanding debt and other obligations.

What was the source of funds for NCR Voyix's (VYX) debt reduction?

The debt reduction was funded using a portion of the proceeds from NCR Voyix's sale of its Digital Banking segment.

How much did NCR Voyix (VYX) repay on its term loan and revolving credit facilities?

NCR Voyix fully repaid its $192.5 million term loan facility and $200 million revolving credit facility.

What was the outcome of NCR Voyix's (VYX) tender offer for senior notes?

NCR Voyix repurchased $1.195 billion of senior notes for a total of $1.206 billion, which included the tender offer consideration and accrued interest.

How much does NCR Voyix (VYX) expect to pay in annual interest expenses after the debt reduction?

NCR Voyix anticipates its annual interest expense on the remaining bonds to be approximately $55 million.

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