Quantum Secures Financing From EMC

Quantum secures $100M financing commitment from EMC

March 28, 2009

1 Min Read
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SAN JOSE, Calif. -- Quantum Corp. (NYSE: QTM), the leading global specialist in backup, recovery and archive, today announced that it has secured a $100 million financing commitment from EMC Corp.(1) (NYSE: EMC) that Quantum will use to refinance its convertible debt (see separate release issued today, titled "Quantum Commences Tender Offer for its 4.375% Convertible Subordinated Notes Due 2010"). By doing so, Quantum will address a key challenge posed by its current capital structure and the very constrained credit environment: the obligation to refinance a majority of its convertible debt by February 2010. EMC, which licenses Quantum's deduplication software for use in some of its industry-leading networked storage products, made the $100 million financing commitment to help ensure that Quantum can continue to invest in the technology enhancements required by EMC to meet the needs of their customers in this fast-growing sector.

"Today's announcement further reinforces the strength of the Quantum-EMC partnership and the work we've been doing together to bring the benefits of data deduplication to customers," said Rick Belluzzo, chairman and CEO at Quantum. "Despite the significant improvements in operational performance Quantum has made over the past year, our capital structure has clearly been a hindrance in the current economic environment. The financing from EMC will give us greater financial flexibility and enable us to maintain a high level of investment in deduplication and replication technology that can be leveraged by both Quantum and our OEM partners, with compatibility across solutions."

Quantum Corp.

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