Riverbed Technology lifts term loan size to roughly $1.6 billion

By Sara Rosenberg

New York, Feb. 25 – Riverbed Technology Inc. increased its seven-year first-lien term loan to $1,625,000,000 from a revised amount of $1,575,000,000 and an initial amount of $1,525,000,000, according to a market source.

Pricing on the term loan remained at Libor plus 500 basis points with a step-down to Libor plus 475 bps based on total first-lien leverage, a 1% Libor floor and an original issue discount of 99˝.

The term loan still has 101 soft call protection for six months.

Earlier in syndication, pricing on the term loan was reduced from Libor plus 525 bps, the step-down was added and the discount was tightened from 98˝.

The company’s now $1,725,000,000 senior secured credit facility (B1/B), up from a most recent amount of $1,675,000,000, still includes a $100 million five-year revolver.

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, $525 million of notes and $1,625,000,000 of equity.

With the term loan upsizings, the notes were downsized from a revised amount of $575 million and an initial amount of $625 million.

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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