SAN JOSE, Calif., Oct. 21, 2016 /PRNewswire/ -- Quantum Corp.
(NYSE: QTM) today announced definitive agreements with PNC Bank and
TCW Direct Lending on a $170 million
financing package consisting of:
- An $80 million revolving credit
facility and an additional $20
million credit line available under an accordion feature,
both with PNC.
- A $50 million term loan with TCW
that will be drawn upon closing.
- A $20 million delayed draw term
loan with TCW available through Dec. 31,
2017.
Quantum will use the proceeds of the financing to pay off the
approximately $60 million drawn on
its former revolving credit facility with Wells Fargo Capital
Finance and to address Quantum's $70
million of convertible notes maturing in November 2017. In addition, the company will use
the financing for general working capital purposes.
"We're excited about the new financing package, which achieves
the key objectives we had established," said Fuad Ahmad, senior vice president and CFO of
Quantum. "This package protects the interests of our current
shareholders by not including an equity component and also gives us
substantially more operational and financial flexibility from a
capital allocation and investment standpoint."
"We've been pleased to work with PNC and TCW on this project,
and the financial structure and their level of commitment further
validate the long-term outlook for the company," said Jon Gacek, president and CEO of Quantum. "This
includes our increasing market momentum and growth opportunities,
as most recently reflected in the positive preliminary results we
announced for the September quarter."
Craig-Hallum Capital Group LLC served as exclusive placement
agent in connection with the transaction.
About Quantum
Quantum is a leading expert in scale-out storage, archive and data
protection, providing solutions for capturing, sharing and
preserving digital assets over the entire data lifecycle. From
small businesses to major enterprises, more than 100,000 customers
have trusted Quantum to address their most demanding data workflow
challenges. Quantum's end-to-end, tiered storage foundation enables
customers to maximize the value of their data by making it
accessible whenever and wherever needed, retaining it indefinitely
and reducing total cost and complexity. See how at
www.quantum.com/customerstories.
Quantum and the Quantum logo are registered trademarks of
Quantum Corporation and its affiliates in the United States and/or other countries. All
other trademarks are the property of their respective owners.
"Safe Harbor" Statement: This press release contains
"forward-looking" statements. All statements other than statements
of historical fact are statements that could be deemed
forward-looking statements. Specifically, but without limitation,
statements relating to: i) our use of proceeds of the financing;
and ii) our long-term outlook, momentum and growth opportunities
are forward-looking statements within the meaning of the Safe
Harbor. All forward-looking statements in this press release are
based on information available to Quantum on the date hereof. These
statements involve known and unknown risks, uncertainties and other
factors that may cause Quantum's actual results to differ
materially from those implied by the forward-looking statements.
More detailed information about these risk factors are set forth in
Quantum's periodic filings with the Securities and Exchange
Commission, including, but not limited to, those risks and
uncertainties listed in the section entitled "Risk Factors," in
Quantum's Annual Report on Form 10-K filed with the Securities and
Exchange Commission on June 3, 2016
and in Quantum's Quarterly Report on Form 10-Q filed with the
Securities and Exchange Commission on August
5, 2016. Quantum expressly disclaims any obligation to
update or alter its forward-looking statements, whether as a result
of new information, future events or otherwise, except as required
by applicable law.
Contact:
Brad Cohen
Public Relations
Quantum Corp.
+1 (408) 944-4044
brad.cohen@quantum.com
Brinlea Johnson or Allise
Furlani
Investor Relations
The Blueshirt Group
+1 (212) 331-8424 or +1 (212) 331-8433
brinlea@blueshirtgroup.com or allise@blueshirtgroup.com
Logo - http://photos.prnewswire.com/prnh/20141209/163323LOGO
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/quantum-executes-170-million-term-loan-and-revolving-credit-facility-package-300349095.html
SOURCE Quantum Corp.