Redback obtains commitment for $30 million credit facility

New York, Oct. 22 - Redback Networks Inc. said it obtained a commitment for a $30 million senior secured credit facility from Ableco Finance LLC.

Interest on the facility is at prime plus 350 basis points.

The facility will be secured by substantially all of Redback's assets.

The San Jose, Calif. company said the facility would be available either in connection with the completion of its previously announced out-of-court recapitalization plan or an in-court plan of reorganization.

Redback is currently conducting an exchange offer in which it is offering stock for all its 5% convertible subordinated notes due 2007.

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