Enterasys gets LBO debt commitment from Wells Fargo Foothill

By Sara Rosenberg

New York, Nov. 14 - Enterasys Networks Inc. has received a debt commitment from Wells Fargo Foothill Inc. to help fund the leveraged buyout of the company by The Gores Group LLC and Tennenbaum Capital Partners LLC for $386 million, according to a Monday filing with the Securities and Exchange Commission.

Furthermore, Tennenbaum has also committed to provide some debt financing for the transaction.

Under the terms of the acquisition agreement, each outstanding Enterasys share will be converted into the right to receive $13.92 in cash.

The transaction, which is expected to be completed in the first quarter of fiscal 2006, is subject to approval by Enterasys shareholders and other customary closing conditions, including regulatory approvals.

Enterasys is an Andover, Mass., company involved in the design, development, marketing and support of network solutions.

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