Riverbed starts roadshow for $575 million eight-year notes offering

By Paul A. Harris

Portland, Ore., Feb. 23 – Riverbed Technology Inc. began a roadshow on Monday for a $575 million offering of eight-year senior notes (Caa1/CCC+), according to a syndicate source.

The roadshow schedule has the offer being presented to investors in New York City and New Jersey on Monday and Tuesday, Boston on Wednesday, and the West Coast of the United States on Thursday.

The deal is expected to price Friday.

Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, Barclays and Morgan Stanley & Co. LLC are the joint bookrunners for the Rule 144A and Regulation S offering.

The notes come with three years of call protection and feature a three-year 40% equity clawback and a 101% poison put.

The notes come with customary incurrence-based high-yield covenants.

Proceeds will be used to fund the leveraged buyout of Riverbed Technology by affiliates of Thoma Bravo and Teachers' Private Capital, the private investor department of Ontario Teachers' Pension Plan.

The notes were originally expected to be sized at $625 million but emerged at $575 million when the company upsized its senior secured credit facility, also part of the buyout financing, to $1,675,000,000 from $1,625,000,000, shifting the proceeds to the loan from the bonds.

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

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