Quantum Corp. Announces It Has Entered Into A Definitive Agreement To Restructure The Co's Outstanding Term Debt Held By Dialectic Technology SPV; Allows Term Debt Of ~$52M To Be Exchanged For Senior Secured Convertible Notes That Have A 3-Year Ma...
Quantum Corporation QMCO | 5.68 | +12.92% |
Transaction Represents Key Milestone Toward Eliminating Outstanding Debt
Quantum Corporation (NASDAQ:QMCO) ("Quantum" or the "Company"), a leader in solutions for AI and unstructured data, today announced it has entered into a definitive agreement (the "Transaction Agreement") to restructure the Company's outstanding term debt held by Dialectic Technology SPV LLC ("Dialectic") and certain other lenders. In addition, Quantum amended its existing term loan credit and security agreement with its current term loan lenders to remove the financial covenants therein.
Highlights of Transaction:
- Ability for Dialectic term debt of approximately $52 million to be exchanged for senior secured convertible notes that have a three-year maturity (the "Debt Exchange")
- Eliminates existing requirement that capital raised to date through the Company's Standby Equity Purchase Agreement (the "SEPA") be used to repay the existing term loan
- Allows up to an additional $15 million of SEPA proceeds to be retained by the Company for working capital and general corporate purposes
- Eliminates existing leverage and minimum liquidity covenants
- Issued Dialectic a warrant to purchase 2,653,308 shares of the Company's common stock as consideration