PNC, TCW back Quantum in refinancing

The bank and asset management firm are coordinating on a deal that will also allow Quantum to fund working capital.

PNC Bank and TCW Direct Lending have teamed up on a $170 million loan package to Quantum Corporation, the borrower said in a Friday statement. 

PNC provided an $80 million revolving credit facility and an additional $20 million credit line available under an accordion feature. Private asset manager TCW provided a $50 million term loan, which it will draw upon closing, and a $20 million delayed-draw loan available through 31 December 2017. Craig-Hallum Capital Group served as exclusive placement agent in connection with the transaction.

Quantum will use the proceeds of the financing to pay off the approximately $60 million drawn on its former revolving credit facility with Wells Fargo Capital Finance and to address the company's $70 million in convertible notes maturing in November 2017, according to a statement. The digital data company will use the package for working capital

Fuad Ahmad, senior vice president and chief financial officer of Quantum, said the package provides the company more flexibility in its capital allocation and to invest, while the financing also protects shareholders because it did not include an equity component.

The lenders and borrower did not respond to requests for comment.

The Carlyle Group owns a majority stake in TCW, which manages approximately $195 billion in client assets as of September, as Private Debt Investor  exclusively reported in August. Los Angeles-based TCW bought its direct lending arm from Regiment Capital Advisors in December 2012. No purchase price was disclosed.

PNC Bank’s total commercial lending increased $1.1 billion, or 1 percent, over the third quarter this year, primarily in corporate banking and real estate businesses, with its loan total reaching $210.4 billion, according to its latest quarterly report.