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"I believe Brocade is poised to leverage its heritage of strong innovation and significantly disrupt the status quo in the data-networking industry," Carney said. "There are profound changes happening across high tech today and Brocade has a great opportunity to lead that transformation through differentiated products and customer focus. Success here will accelerate profitable growth for our company and drive further value for our shareholders."
Speaking of value, Brocade also announced it is buying back debt and refinancing it at a lower interest rate. The company said it is pricing its $300 million in 4.625 percent senior notes to mature in 2023 at an issue price of 100 percent of the principal. Brocade will offer the notes in a private placement to "qualified institutional buyers" in the U.S. as required by the Securities and Exchange Commission. Sale of the notes is expected to close Tuesday.
Brocade intends to use the net proceeds of the offering, together with cash on hand, to redeem all of Brocade's outstanding 6.625 percent 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.