Brocade to start roadshow for $400 million six-year notes Oct. 20 week

By Paul A. Harris

St. Louis, Oct. 15 - Brocade Communications Systems Inc. will start a roadshow during the Oct. 20 week for its $400 million offering of six-year senior unsecured notes (BB-), according to an informed source.

Banc of America Securities LLC and Morgan Stanley & Co. Inc. are joint bookrunners for the Rule 144A with registration rights offering. KeyBanc Capital and Scotia Capital are co-managers.

The notes come with four years of call protection and a change-of-control put of 101%.

The notes will be guaranteed on a senior unsecured basis by all guarantors under the company's senior credit facilities.

Proceeds and cash on hand, shares of Brocade common stock and a new credit facility will be used to help finance the acquisition of Foundry Networks, Inc.

The size of the unsecured financing was downsized by $100 million in September, with the proceeds shifted to the company's bank loan.

Brocade is a San Jose, Calif., provider of data center networking services. Foundry is a Santa Clara, Calif., provider of high-performance enterprise and service provider switching, routing, security and web traffic management services.

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