SAN JOSE, Calif., Dec. 1, 2016 /PRNewswire/ -- Quantum Corp.
(NYSE: QTM) today announced that, over the last month, it has
purchased $5.4 million of its
convertible notes due November 2017
at a discount in the open market. The discount on the notes, along
with the associated interest savings, resulted in a 6.625 percent
yield to the company. This represents a gain in excess of 350 basis
points relative to Quantum's cost of capital under its $80 million revolving credit facility with PNC
Bank.
"We saw this as a good opportunity to repay a portion of our
convertible notes on favorable terms," said Fuad Ahmad, senior vice president and CFO of
Quantum. "If the remaining $64.6
million of convertible notes does not convert prior to the
November 2017 due date, we plan to
repay them using a combination of cash, the PNC credit facility and
the $20 million delayed draw term
loan we have with TCW Direct Lending."
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,
the statement that, if the remaining $64.6
million of convertible notes does not convert prior to the
November 2017 due date, we plan to
repay them using a combination of cash, the PNC credit facility and
the $20 million delayed draw term
loan we have with TCW Direct Lending, is a forward-looking
statement 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 November 4, 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
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SOURCE Quantum Corp.