Business
Quantum Receives Shareholder Approval to Exchange Outstanding Term Debt for Senior Secured Convertible Notes
Transaction to Eliminate Approximately 50% of Outstanding Term Debt CENTENNIAL, Colo.--(BUSINESS WIRE)-- Quantum Corporation (Nasdaq: QMCO) (Quantum or the
About this update from Quantum Corporation
[{"type":"text","content":"\nTransaction to Eliminate Approximately 50% of Outstanding Term Debt\n\n CENTENNIAL, Colo.--(BUSINESS WIRE)--\nQuantum Corporation (Nasdaq: QMCO) (Quantum or the Company), today announced that all matters brought before the Company’s Annual Meeting of Shareholders held on December 16, 2025 were approved, including the proposal to issue senior secured convertible notes (Convertible Notes) to Dialectic Technology SPV LLC (Dialectic) in a dollar-for-dollar exchange for approximately $55 million of term debt held by Dialectic. As a result, following such exchange, Dialectic will be entitled to acquire shares of Quantum’s common stock upon the conversion of such Convertible Notes.\n\nHugues Meyrath, CEO of Quantum, commented, “We are grateful to our shareholders for their strong support in approving this strategic debt exchange, which significantly strengthens our balance sheet by eliminating approximately 50% of our outstanding term loan debt. Following this transaction, the Company will have eliminated $140 million in total debt from its balance sheet since its peak debt in 2020. This move underscores our focused commitment toward strengthening our overall financial position and liquidity, while also providing financial and operational flexibility to accelerate innovation in AI-driven data management solutions and delivering long-term shareholder value.”\n\nThe Convertible Notes will mature on the third anniversary of the closing and will have an interest rate of 10% per annum, payable in kind, compounded annually. The initial conversion price of the Convertible Notes will be $10.00 per share of common stock (Conversion Price), subject to adjustment for stock splits and similar events. The Conversion Price is also subject to adjustment on the last day of each calendar quarter for three consecutive quarters following closing, but in any event the Conversion Price will not be reset below $4.00 per share of common stock. Following the six-month anniversary of closing, if certain conditions are met, the Company may elect to require the conversion of a portion of the total outstanding amount of any Convertible Notes into shares of common stock at the then current Conversion Price.\n\nAbout Quantum\n\nQuantum delivers end-to-end data management solutions designed for the AI era. With over four decades of experience, our data platform ha...