According to an 8K filed with the SEC, U.S. Bank served as disbursing and collateral agent on an amendment to a term loan agreement for Quantum while PNC Bank served as administrative agent for an amendment to the company’s revolving credit agreement.

Included in the term loan amendment was a reduction in the cash interest payment to 7.5% from 12% for the fourth fiscal quarter, with the remaining portion being paid-in-kind, and a deferral of the loan amortization payment until next quarter resulting in an immediate cash savings of approximately $2.3 million.

The credit agreement was amended to waive applicable covenants for the fourth fiscal quarter.

As outlined in both amendments, Quantum and its lenders intend to work to further amend the credit agreements by May 15, 2020 to provide a framework that will be supportive of the company beyond the current period.

“While customer order delays resulting from the COVID-19 pandemic impacted our ability to reach our previously issued guidance, the Quantum team executed well and navigated unprecedented conditions at the end of the quarter while proactively working with our lenders to ensure our credit facilities remained aligned to the current dynamic business environment,” Mike Dodson, CFO of Quantum, said. “The on-going rationalization of our cost structure and our shift to higher-value and higher-margin solutions, which our clients view as critical to their operations, continues to deliver benefits and strengthen our fundamentals.”

Quantum technology and services help customers capture, create, share, preserve and protect digital content.