Foundry Networks, Incorporated (FDRY)

[MrBankRoll]

Brocade gets $1.225 bln loan to finance Foundry deal

By Sue Chang
Last update: 4:46 p.m. EDT Oct. 7, 2008
SAN FRANCISCO (MarketWatch) -- Brocade said late Tuesday it entered into a $1.225 billion secured credit facility to partly finance its buyout of Foundry Networks (FDRY:foundry networks inc.

FDRY 16.26, -0.91, -5.3%) . In addition to the funds, Brocade expects to raise up to $400 million in additional financing and using cash on hand to fund the deal. The proposed buyout has received regulatory clearance and approval from the boards of each company. Shareholders of Foundry are scheduled to vote on the deal on Oct. 24. The buyout is expected to close in the fourth quarter.