SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Pursuant to Section 13 or 15(d) of
the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): June 10, 2011
BROCADE COMMUNICATIONS SYSTEMS, INC.
(Exact name of Registrant as specified in its charter)
130 Holger Way
San Jose, CA 95134
(Address of principal executive offices) (Zip Code)
(Registrants telephone number, including area code)
(Former Name or Former Address, if Changed Since Last Report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
On June 10, 2011, Brocade Communications Systems, Inc. (Brocade) entered into an Amendment No. 2 (the Amendment) to the Credit Agreement, dated as of October 7, 2008 (as amended), by and among Brocade, the lenders party thereto, Bank of America, N.A., as administrative agent, swing line lender and letter of credit issuer, Morgan Stanley Senior Funding, Inc., as syndication agent, Banc of America Securities LLC and Morgan Stanley Senior Funding, Inc., as joint lead arrangers and joint bookrunners, and HSBC Bank USA National Association and Keybank National Association, as co-documentation agents (the Credit Agreement).
The Amendment provides for, among other things, the refinancing of Brocades term loan outstanding immediately prior to the Amendment and a reduction in the interest rate payable under the term loan. More specifically, the Amendment (i) reduced the applicable margin on the term loan to a level not in excess of LIBOR plus 237.5 basis points (compared to LIBOR plus 400 basis points under the prior term loan), (ii) eliminated the minimum LIBOR floor (compared to a minimum LIBOR floor of 3.0% under the prior term loan), and (iii) modified certain covenants to provide Brocade with greater flexibility. The Amendment does not increase the principal amount of loans outstanding under the Credit Agreement, which is approximately $250 million as of June 10, 2011.
The description of the Amendment is qualified in its entirety by the full text of the Amendment, which is filed as an exhibit to this Current Report on Form 8-K and is incorporated by reference herein.
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.