Quantum amends credit facilities, increasing margin

By Angela McDaniels

Seattle, Dec. 1 - Quantum Corp. amended its first-lien credit agreement and second-lien term loan agreement on Monday, according to an 8-K report filed with the Securities and Exchange Commission on Thursday.

The amendments, among other things:

• Adjust the minimum fixed charge coverage ratio requirements in both credit facilities;

• Adjust the maximum leverage ratio and maximum senior leverage ratio under the second-lien term loan agreement;

• Prohibit prepayment of amounts outstanding under the second-lien term loan agreement until one year after Aug. 22, 2007 and adjust the prepayment penalties for the periods after that date; and

• Increase the margin applicable to the Base Rate loans under the second-lien term loan agreement to 6.75% and the margin applicable to the Libor loans to 8.25%, provided that if at any time the second-lien debt achieves a Moody's Investors Service rating of B3 or better with a stable outlook, the Base Rate and Libor rate will return to 6.00% and 7.50%, respectively.

KeyBank NA is the administrative agent for the loans.

Quantum is a San Jose, Calif., provider of storage, backup, recovery and archive services.

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