Quantum buys back $6 million more convertibles at ‘favorable terms’

By Susanna Moon

Chicago, Aug. 24 – Quantum Corp. said it purchased another $6 million of its convertible notes due November 2017 in the open market.

The buybacks bring the total convertible purchases to about $13 million over the past nine months, “all on favorable terms,” according to a company announcement.

After the most recent $6 million purchase, the outstanding amount of the convertibles is $57 million.

“To date, we've been using cash flow from operations to purchase our convertible notes,” Fuad Ahmad, senior vice president and chief financial officer of Quantum, said in a company press release.

“We will utilize liquidity available under our credit facilities with PNC Bank and TCW Direct Lending as well as cash flow from operations to redeem the notes when they come due in November of this year. We have significant resources to repay the notes – as of June 30, 2017, we had approximately $90 million in liquidity, including $20 million in a delayed-draw term loan.”

The company said on Dec. 1, 2016 that it purchased $5.4 million of the convertibles at a discount in the open market.

Quantum is a San Jose, Calif., digital storage, archive and data protection company.

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