Quantum Intends to Offer Convertible Senior Subordinated Notes

Quantum Corp. intends to commence a private placement, subject to market conditions, of $125 million aggregate principal amount of Convertible Senior Subordinated Notes due 2015 in reliance on Rule 144A under the Securities Act of 1933, as amended.

The notes will be convertible, at the option of the holders, into shares of the company’s common stock. The interest rate, conversion rate and offering price are to be determined by negotiations between the company and the initial purchasers of the notes.

In addition, Quantum expects to grant the initial purchasers of the notes an over-allotment option to purchase up to an additional $10 million aggregate principal amount of notes from the company.

Quantum intends to use the net proceeds from the private placement primarily to repay in full all amounts outstanding under its 12 percent senior subordinated term loan agreements with EMC and to use any remaining net proceeds to repay amounts owed under its senior secured credit agreement with Credit Suisse.