Riverbed ups term B to $575 million, cuts spread to Libor plus 300 bps

By Sara Rosenberg

New York, Dec. 11 - Riverbed Technology Inc. increased its seven-year senior secured term loan B (Ba3/BBB-) to $575 million from $500 million and lowered pricing to Libor plus 300 basis points from talk of Libor plus 325 bps to 350 bps, according to a market source.

Also, 101 soft call protection for one year was added to the loan, the source said.

The 1% Libor floor and original issue discount of 99½ were left unchanged.

Commitments are due at noon ET on Wednesday, revised from an original deadline of Thursday, the source added.

Morgan Stanley Senior Funding Inc. and Goldman Sachs & Co. are the joint lead arrangers and bookrunners on the deal.

Proceeds will be used to help fund the acquisition of Opnet Technologies Inc. for $43 per share in cash and stock, and, because of the upsizing, to add cash to the balance sheet and for general corporate purposes.

Under the agreement, Opnet stockholders will receive $36.55 in cash and 0.2774 of a share of Riverbed common stock per Opnet share.

The transaction has an equity value of $1 billion and an enterprise value of $921 million.

Closing is expected by year-end, subject to customary conditions, including the tender into the exchange offer by a majority of Opnet stockholders, receipt of financing and the expiration or termination of the applicable waiting period under the Hart-Scott-Rodino Antitrust Improvements Act.

Riverbed is a San Francisco-based IT performance company. Opnet is a Bethesda, Md.-based provider of solutions for application and network performance management.

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