Quantum Corporation announced that its shareholders approved a debt‑exchange transaction on December 17, 2025, converting roughly $55 million of its term debt into senior secured convertible notes. The approval was reached during a shareholder meeting held on December 16, 2025, and the company disclosed the decision the following day.
The new notes carry a 10% annual interest rate, payable in kind, and mature on the third anniversary of closing. The conversion price is set at $10.00 per share, with a floor of $4.00, giving investors a potential upside while providing Quantum with a lower‑interest, longer‑term financing structure than the original term debt, which carried higher rates and shorter maturities.
This transaction follows a similar debt‑exchange completed in September 2025, when Quantum swapped approximately $52 million of term debt held by Dialectic Technology SPV LLC for senior secured convertible notes. Dialectic’s continued involvement underscores the company’s ongoing partnership with a key lender to reduce leverage and align interests with equity holders.
While the debt exchange eliminates about 50% of Quantum’s outstanding term debt, the exact net‑debt reduction is not publicly confirmed. Prior to the exchange, the company’s total debt stood at $105.5 million (September 2025) and had risen to $146.4 million in April 2025. The conversion is expected to lower overall leverage and improve the debt‑to‑equity ratio, strengthening the balance sheet for future capital expenditures and operational initiatives.
Management highlighted that the lower‑interest, longer‑term notes will provide greater financial flexibility, particularly as Quantum expands its AI‑driven data‑management platform. CEO Hugues Meyrath noted that the transaction “significantly strengthens our balance sheet by eliminating approximately 50% of our outstanding term loan debt,” positioning the company to invest in high‑margin AI solutions and support growth in its core data‑platform business.
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