Brocade Announces Pricing of $300 Million In Senior Notes Offering

Brocade Communications Systems, Inc. announced the pricing of its previously announced offering of $300 million in aggregate principal amount of 4.625% senior notes that will mature in 2023 at an issue price of 100% of the principal amount of the notes.

The notes will be offered in a private placement to "qualified institutional buyers" in the United States as defined in Rule 144A under the Securities Act of 1933, as amended, and outside the United States pursuant to Regulation S under the Securities Act.

The notes will be senior obligations of the company and will be guaranteed by certain of the company’s domestic subsidiaries. The sale of the notes is expected to close on or about January 22, 2013.

Brocade intends to use the net proceeds of the offering, together with cash on hand, to redeem all of Brocade’s outstanding 6.625% senior secured notes due 2018, including the payment of accrued and unpaid interest on the 2018 notes to but excluding the date of redemption and the applicable premium and expenses associated with the redemption.