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NEW YORK - Data storage company Brocade Communications Systems Inc. said Wednesday it is offering $400 million in senior notes due 2014 to finance its $3 billion purchase of Foundry Networks Inc.
The San Jose, Calif.-based company will also use cash on hand and loans from its new credit facility to finance the acquisition of Foundry.
Brocade wants Foundry Networks because Brocade's primary business--it's dominant in a type of switch that connects servers to data storage machines--is under pressure. The acquisition promises to make Brocade a more well-rounded competitor to Cisco Systems Inc.
On Tuesday Brocade said it entered into a $1.2 billion secured credit facility with Bank of America. The agreement includes a $1.1 billion term loan and a $125 million revolving credit facility.
The Foundry Networks deal is expected to close during the fourth quarter.
Brocade shares fell 57 cents, or 14 percent, to close at $3.43 Wednesday.
U.S. stocks were mixed on Thursday after retailers reported mostly disappointing sales while other big-name companies announced layoffs and Europ...
China markets opened lower on Tuesday morning as the investors' confidence hit by the signals that global recession are deepening.
The markets have spoken: risk aversion is still the name of the game and that was obvious since the beginning of the week.
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