Riverbed inks restructuring agreement to slash debt by $1 billion

By Sarah Lizee

Olympia, Wash., Oct. 13 – Riverbed Technology, Inc. announced that it has entered into a restructuring support agreement with its equity sponsors and an informal group of lenders holding a super-majority of its funded secured debt over the terms of a comprehensive financial restructuring that will reduce its funded secured debt by over $1 billion.

The restructuring will also provide a $100 million cash infusion, $65 million of which is available immediately, according to a press release.

Following the transaction, institutional investors led by Apollo Global Management will become the majority owners of the company through their managed funds.

To implement the recapitalization, the company is soliciting approval of the transactions contemplated by the restructuring support agreement.

Riverbed said that in order to complete the process as expeditiously as possible, the recapitalization will be implemented through either an exchange transaction, or if necessary, an accelerated pre-packaged court-supervised process.

Under either mechanism, Riverbed said its operations and the acceleration of its strategy will continue as normal and channel partners and suppliers will continue to be paid in the ordinary course of business.

Riverbed’s advisers include Kirkland & Ellis LLP as legal counsel, AlixPartners as restructuring adviser, and GLC Advisors & Co. as investment banker.

The informal lender group’s advisers include White & Case LLP as legal counsel and Centerview Partners as financial adviser. Davis Polk & Wardwell LLP is acting as counsel to certain members of the group.

Riverbed is a San Francisco-based technology company that specializes in improving the performance of networks and networked applications.

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