Quantum Corporation Successfully Raises $67.5 Million in Oversubscribed Rights Offering; Strengthens Balance Sheet and Amends Debt Covenants

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[{"type":"text","content":"SAN JOSE, Calif., April 26, 2022 /PRNewswire/ -- Quantum Corporation (Nasdaq: QMCO) (the Company) announced today the closing of its recent Rights Offering. Through broad participation from outside investors and with all eligible directors and officers participating, the Rights Offering was substantially oversubscribed, resulting in the Company raising the maximum available of $67.5 million and issuing 30 million shares.\n\n \n \n \n \n \n \n\n \n\"We are very pleased to have completed our Rights Offering. We saw overwhelming support from our shareholders, directors, and officers resulting in our being oversubscribed,\" commented Jamie Lerner, Chairman and CEO of Quantum. \"The proceeds enable us to strengthen our balance sheet, reducing our debt by $20 million and adding over $45 million to our cash position. Additionally, with the cooperation of our supporting banks, we have reset all debt covenants to more favorable levels while increasing our revolving line of credit by $10 million to $40 million. These steps establish a stronger financial footing for the Company during these ongoing supply constrained times, allowing us to maintain our focus on growing revenue and fulfilling the increasing demand for our storage solutions.\"\nAs agreed to previously pursuant to the Investment Commitment Agreement dated March 16, 2022, Neuberger Berman Investment Advisers LLC on behalf of itself and certain funds managed by it, BRF Investments, LLC, B. Riley Securities, Inc., BRC Partners Opportunity Fund, LP, and certain of its other existing security holders, participated in the Rights Offering, purchasing an aggregate of approximately 22.4 million shares of Common Stock. All eligible directors and executive officers of the Company participated in the Rights Offering, purchasing an aggregate of approximately 135,335 shares of Common Stock.\nThe Company intends to use the net proceeds for the repayment of $20.0 million of its outstanding indebtedness, to improve the strength of its balance sheet, and for working capital and other general corporate purposes.\nThe Company has also entered into amendments to the Amended and Restated Revolving Credit and Security Agreement (the Revolving Credit Agreement) and the Amended Term Loan Credit and Security Agreement (the Term Loan). The Revolving Credit Agreement amendment, among other things, increa...

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