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Marvell Meeting With Lenders

It wants a loan for the Intel unit buy.
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Marvell (MRVL) - Get Marvell Technology Group Ltd. Report said intends to meet with potential lenders to line up a $500 million loan for its pending purchase of Intel's (INTC) - Get Intel Corporation (INTC) Report communications and application processor business.

The companies agreed in June to a $600 million deal for that unit.

Santa Clara, Calif.-based Marvell said Tuesday that the proposed acquisition financing will be in the form of a senior term loan facility in an aggregate principal amount of up to $500 million. Marvell expects that the net proceeds from the term loan facility, together with existing cash on hand, will be used to pay the purchase price for the acquisition, related transaction costs, and advance payments for products under a supply agreement with Intel.

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