Quantum refinances with $210 million of five-year credit facilities

By Sarah Lizee

Olympia, Wash., Dec. 28 – Quantum Corp. said it refinanced its current debt facilities on Thursday, providing for $210 million of five-year credit facilities, according to an 8-K filing with the Securities and Exchange Commission.

The facilities include $45 million revolving credit facility and a $150 million senior secured term loan. The facilities also include a $15 million senior secured delayed-draw term loan, to be drawn on or before Jan. 11.

Interest on the revolver is Libor plus 400 basis points initially. The margin will range from 350 bps to 450 bps, depending on the total leverage ratio.

Term loan borrowings will bear interest at Libor plus 1,000 bps.

The facilities mature Dec. 27, 2023.

PNC Bank, NA is the administrative agent for the revolver.

U.S. Bank NA is the agent for the term loan.

Proceeds under the term loan were used at close to repay in full outstanding debt totaling $113.2 million under the company’s existing term loan credit agreement dated Oct. 21, 2016.

The company borrowed about $4.4 million under the revolver at close.

Quantum is a San Jose, Calif.-based storage company that provides backup, recovery and archive solutions for customers ranging from small businesses to multinational enterprises.

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