Leading expert in scale-out storage, archive and data protection, Quantum, Corp. (NYSE:QTM), announces definitive agreements with PNC Bank and TCW Direct Lending on a $170 million financing package.
SAN JOSE, Calif., Oct. 21, 2016 /PRNewswire/ — Quantum Corp. (QTM) today announced definitive agreements with PNC Bank and TCW Direct Lending on a $170 million financing package consisting of:
An $80 million revolving credit facility and an additional $20 million credit line available under an accordion feature, both with PNC.
A $50 million term loan with TCW that will be drawn upon closing.
A $20 million delayed draw term loan with TCW available through Dec. 31, 2017.
Quantum will use the proceeds of the financing to pay off the approximately $60 million drawn on its former revolving credit facility with Wells Fargo Capital Finance and to address Quantum’s $70 million of convertible notes maturing in November 2017. In addition, the company will use the financing for general working capital purposes.
“We’re excited about the new financing package, which achieves the key objectives we had established,” said Fuad Ahmad, senior vice president and CFO of Quantum. “This package protects the interests of our current shareholders by not including an equity component and also gives us substantially more operational and financial flexibility from a capital allocation and investment standpoint.”
“We’ve been pleased to work with PNC and TCW on this project, and the financial structure and their level of commitment further validate the long-term outlook for the company,” said Jon Gacek, president and CEO of Quantum. “This includes our increasing market momentum and growth opportunities, as most recently reflected in the positive preliminary results we announced for the September quarter.”
Craig-Hallum Capital Group LLC served as exclusive placement agent in connection with the transaction.
Quantum is a leading expert in scale-out storage, archive and data protection, providing solutions for capturing, sharing and preserving digital assets over the entire data lifecycle. From small businesses to major enterprises, more than 100,000 customers have trusted Quantum to address their most demanding data workflow challenges. Quantum’s end-to-end, tiered storage foundation enables customers to maximize the value of their data by making it accessible whenever and wherever needed, retaining it indefinitely and reducing total cost and complexity. See how at www.quantum.com/customerstories.
Quantum and the Quantum logo are registered trademarks of Quantum Corporation and its affiliates in the United States and/or other countries. All other trademarks are the property of their respective owners.
“Safe Harbor” Statement: This press release contains “forward-looking” statements. All statements other than statements of historical fact are statements that could be deemed forward-looking statements. Specifically, but without limitation, statements relating to: i) our use of proceeds of the financing; and ii) our long-term outlook, momentum and growth opportunities are forward-looking statements within the meaning of the Safe Harbor. All forward-looking statements in this press release are based on information available to Quantum on the date hereof. These statements involve known and unknown risks, uncertainties and other factors that may cause Quantum’s actual results to differ materially from those implied by the forward-looking statements. More detailed information about these risk factors are set forth in Quantum’s periodic filings with the Securities and Exchange Commission, including, but not limited to, those risks and uncertainties listed in the section entitled “Risk Factors,” in Quantum’s Annual Report on Form 10-K filed with the Securities and Exchange Commission on June 3, 2016 and in Quantum’s Quarterly Report on Form 10-Q filed with the Securities and Exchange Commission on August 5, 2016. Quantum expressly disclaims any obligation to update or alter its forward-looking statements, whether as a result of new information, future events or otherwise, except as required by applicable law.
Quantum, Corp. (NYSE:QTM) shares are moving +3.6718% on the news today and have traded in the range of $0.8500 – 0.9190 during the current trading session. A number of brokerage analysts have recently weighed in on the stock, providing price target projections. The covering firms currently have a consensus one-year price target of $1.5000 on the stock. This is according to brokerage analysts polled by Thomson Reuters First Call. This is the average number from the individual targets provided by the firms. Analysts are projecting earnings per share of $0.0100 for the next fiscal quarter. For the current year, analysts are predicting earnings of $0.0300 per share according to First Call.
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In looking at where Quantum, Corp. (NYSE:QTM) is trading on a technical level, the stock is trading +16.1757% away from its 50-day moving average of $0.7461. Based on the most recent available data, the equity is -17.4476% off of its 52-week high of $1.0500 and +147.6572% away from its 52-week low which is $0.3500.
The price to current year EPS estimates from research analysts currently stands at 28.8933. In looking further ahead, potential investors should note that the company’s price to next year’s EPS estimates is $17.3360.
Today, the stock opened at $0.8500 and the last bid at the time of writing stood at $0.8668. During the session thus far, the equity dipped down to $0.8500 and touched $0.9190 as the high point. Quantum, Corp. (NYSE:QTM) has a market cap of $233.34M and has seen an average daily volume of 932092 over the past three months.
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Disclaimer: The views, opinions, and information expressed in this article are those of the authors and do not necessarily reflect the official policy or position of any company stakeholders, financial professionals, or analysts. Examples of analysis performed within this article are only examples. They should not be utilized to make stock portfolio or financial decisions as they are based only on limited and open source information. Assumptions made within the analysis are not reflective of the position of any analysts or financial professionals.