Quantum amends credit line agreement for extra flexibility
Quantum Corp has announced that it has amended its credit agreement with Wells Fargo Capital Finance, LLC, to provide additional flexibility in using proceeds from loans under the agreement to repay the $84 million in convertible notes due 15 August 2015. Among other changes, the amendment increases the amount of foreign accounts receivable and intellectual property assets included in the borrowing base, and modifies the maturity date.
“As we’ve previously stated, we have the resources to pay off the convertible notes due this November and expect to utilise a combination of our cash on hand, cash we generate from operations and the $75 million revolver provided for under the Wells Fargo credit agreement,” said Linda Breard, senior vice president and CFO at Quantum. “The credit agreement amendment announced today gives us more freedom in determining the exact combination of resources we will use to meet this obligation.”
For additional information on the amended credit agreement, please refer to Quantum’s Form 8-K filing with the U.S. Securities and Exchange Commission, dated 13 August 2015.