What happened

Shares of NCR (NYSE:NCR) have risen today, up by 2% as of 12:30 p.m. EDT, after the company announced an offering of senior notes. Many companies are beefing up their balance sheets to help weather the impacts of the COVID-19 crisis.

So what

NCR is looking to raise $400 million from the senior notes offering. The notes will come due in 2025 and are being offered to qualified institutional investors. The payment tech company says it plans to use the proceeds for working capital and general corporate purposes.

Restaurant worker holding a tablet

NCR serves the restaurant industry, which is getting slammed by the coronavirus. Image source: Getty Images.

The offering will substantially strengthen NCR's balance sheet. The company finished last year with $509 million in cash and cash equivalents, and NCR serves sectors that have considerable exposure to coronavirus-related shutdowns, including retail and hospitality. Those segments represented 44% of NCR revenue last year.

Now what

In its most recent annual report, NCR also acknowledged that the coronavirus outbreak could adversely impact the company's supply chain in China. NCR hosted a conference call with investors last week to discuss the effects of the public health crisis. The company withdrew the guidance that it had previously issued in February and detailed the anticipated impacts on its various operating segments. Expectedly, certain markets within the retail and hospitality segments such as local restaurants will see significant impacts in the near term.

NCR hopes to be cash flow neutral each quarter as it looks to cut costs by suspending share repurchases and limiting M&A activity. The company is also implementing salary reductions as well as a hiring freeze to save cash.