Quantum signs term sheet for added flexibility under credit facility

By Sarah Lizee

Olympia, Wash., Feb. 8 – Quantum Corp. and its senior lenders signed a term sheet designed to create additional flexibility under the company’s credit facility, according to a press release.

The term sheet addresses recent covenant violations and provides the time and ability for Quantum to “fully execute its business transformation.”

Quantum said it expects this flexibility would also give the company the resources it needs to meet working capital requirements for the foreseeable future.

The term sheet is subject to completion of a definitive agreement on the amended credit facility.

“Our lenders have been extremely supportive of our ongoing efforts to relax covenant requirements, free restricted cash and allow retroactive application of cost savings for covenant calculations to provide additional cushion,” Fuad Ahmad, senior vice president and chief financial officer of Quantum, said in the release.

Quantum is a San Jose, Calif., digital storage, archive and data protection company.

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