Riverbed Technology increases term loan size, reduces pricing

By Sara Rosenberg

New York, Feb. 23 – Riverbed Technology Inc. lifted its seven-year first-lien term loan to $1,575,000,000 from $1,525,000,000 and lowered pricing to Libor plus 500 basis points from Libor plus 525 bps, according to a market source.

Also, a pricing step-down was added to the term loan to Libor plus 475 bps based on total first-lien leverage and the original issue discount was tightened to 99˝ from 98˝, the source said.

The term loan continues to have a 1% Libor floor and 101 soft call protection for six months.

The company’s now $1,675,000,000 senior secured credit facility (B1/B), up from $1,625,000,000, still includes a $100 million five-year revolver.

Commitments are due at noon ET on Tuesday, accelerated from Thursday, the source added.

Credit Suisse Securities (USA) LLC, Citigroup Global Markets Inc., Barclays and Morgan Stanley Senior Funding Inc. are the lead banks on the debt.

Proceeds will be used to help fund the buyout of the company by Thoma Bravo LLC and Teachers’ Private Capital for $21.00 per share in cash, or a total of about $3.6 billion.

Other funds for the transaction will come from $614 million of cash on the balance sheet, $575 million of notes and $1,625,000,000 of equity.

The notes were originally expected to be sized at $625 million but emerged at $575 million with the term loan upsizing.

Closing is expected in the first half of this year, subject to stockholder approval, regulatory approvals and other customary conditions. There are no financing conditions for the transaction.

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

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