Quantum Purchases $5.4 Million of November 2017 Convertible Notes

Published on Dec 1, 2016 in Quantum

This post was originally posted to the Quantum website.

SAN JOSE, Calif., Dec. 1, 2016 /PRNewswire/ — Quantum Corp. (NYSE: QTM) today announced that, over the last month, it has purchased $5.4 million of its convertible notes due November 2017 at a discount in the open market. The discount on the notes, along with the associated interest savings, resulted in a 6.625 percent yield to the company. This represents a gain in excess of 350 basis points relative to Quantum’s cost of capital under its $80 million revolving credit facility with PNC Bank.

“We saw this as a good opportunity to repay a portion of our convertible notes on favorable terms,” said Fuad Ahmad, senior vice president and CFO of Quantum. “If the remaining $64.6 million of con…

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