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NCR Voyix slashes $1.84 billion in debt post-sale

Published 09/30/2024, 04:12 PM
NCR
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ATLANTA - NCR (NYSE:VYX) Voyix Corporation (NYSE: VYX), a provider of digital commerce solutions for retail and restaurant industries, has significantly reduced its debt by $1.84 billion following the sale of its Digital Banking segment. The company's Chief Financial Officer, Brian Webb-Walsh, announced the repayment of various loans and obligations, which has considerably strengthened the company's balance sheet.

The repayments included the full settlement of its term loan facility, amounting to $192.5 million, and the revolving credit facility, totaling $200 million. Additionally, the company settled a substantial portion of its senior notes due between 2028 and 2030, amounting to $1,195 million out of a total $2,300 million. The remaining outstanding debt as of today stands at $1,105 million.

Webb-Walsh stated that the proceeds from the Digital Banking business sale have not only improved the company's financial position but also reduced annual interest expenses, enhancing shareholder value. The anticipated annual interest expense on the remaining bonds is approximately $55 million.

NCR Voyix, headquartered in Atlanta, Georgia, continues to serve a global customer base in over 30 countries, providing a cloud-based platform and services to transform customer experiences in the retail and restaurant sectors.

The company's financial moves are part of its strategic efforts to streamline operations and focus on core business strengths. This information is based on a press release statement from NCR Voyix Corporation.

In other recent news, NCR Voyix Corporation has initiated cash tender offers for a segment of its outstanding senior notes. The aggregate purchase price is set to a maximum of $1.1 billion, excluding accrued interest. The tender offers are contingent upon the successful completion of the sale of the company's Digital Banking segment, a transaction currently in progress. Goldman Sachs & Co. LLC and J.P. Morgan Securities LLC have been appointed as dealer managers for the tender offers.

Simultaneously, Primech Holdings Ltd has announced amendments to its Form 6-K filing with the U.S. Securities and Exchange Commission. The amendment relates to the company's annual general meeting of shareholders. Additionally, the company disclosed plans for its annual shareholder meeting without revealing the specific agenda. The CEO of Primech Holdings Ltd, Kin Wai Ho, has assured compliance with the Securities Exchange Act of 1934 by signing off on the amendment. These are the latest developments for both NCR Voyix and Primech Holdings Ltd.

InvestingPro Insights

NCR Voyix Corporation's recent debt reduction aligns well with its financial profile, as highlighted by InvestingPro data. The company's strategic move to sell its Digital Banking segment and use the proceeds to pay down debt has significantly improved its balance sheet. This is reflected in one of the InvestingPro Tips, which notes that NCR "holds more cash than debt on its balance sheet."

The company's focus on streamlining operations and enhancing shareholder value is further supported by another InvestingPro Tip, which indicates that the stock "generally trades with low price volatility." This stability could be attractive to investors looking for consistent performance in the digital commerce solutions sector.

Despite the positive developments in debt reduction, it's worth noting that NCR is "not profitable over the last twelve months," according to InvestingPro. This insight underscores the importance of the company's efforts to reduce interest expenses and focus on core business strengths.

For investors seeking a more comprehensive analysis, InvestingPro offers additional tips and metrics beyond those mentioned here. In fact, there are 7 more InvestingPro Tips available for NCR, providing a deeper understanding of the company's financial health and market position.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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