Quantum Completes Debt Refinancing

Quantum Corporation completed the refinancing of its senior secured term loan.

Following a competitive proposal process, it remained with affiliates of the existing lenders and replaced the existing term loan facility with a new $100 million senior secured term loan that matures in 2026. The new facility bears an interest rate equal to LIBOR plus 600 basis points. 

Annual interest expense will be $7 million lower with the new debt as the amortization for debt costs is lower than the previous term debt loan. The refinancing transaction will also allow for significant improvement in the former highly restrictive financial covenants and other operating restrictions. 

Jamie Lerner, chairman and CEO, said: “We are extremely pleased to complete our refinancing, which represents the final step in our debt restructuring and replaces our prior high interest debt. This transaction enhances our financial flexibility and significantly reduces our annual debt service. Further, this refinancing demonstrates Quantum’s commitment to operating with strong financial management, while continuing to solve customers’ unstructured data storage challenges.”