Quantum tenders for 4.375% convertibles, plans to fund offer via term loan

By Jennifer Chiou

New York, March 27 - Quantum Corp. announced the launch of a tender offer for up to $142 million of its 4.375% convertible subordinated notes due 2010.

Quantum added that it intends to finance the offer with the net proceeds of an up to $100 million term loan it expects to receive from EMC Corp.

The tender offer will expire at 5 p.m. ET on May 12.

Noteholders participating in the offer will receive $700 for each $1,000 principal amount of notes plus accrued interest up to but excluding the settlement date.

If the company receives tenders in excess of the $142 maximum, it will accept notes on a pro rata basis.

The tender offer is contingent upon no less than $135 million of notes being tendered. It is also reliant on Quantum receiving at least $100 million in gross proceeds from the EMC loan.

Credit Suisse is the dealer manager (212 325-2000). Global Bondholder Services Corp. is the information agent (call collect 212 430-3774 or 866 488-1500).

San Jose, Calif.-based Quantum is a storage company specializing in backup, recovery and archive.

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