Riverbed talks $525 million eight-year notes to yield 9%-9¼%

By Paul A. Harris

Portland, Ore., Feb. 26 – Riverbed Technology Inc. talked its $525 million offering of eight-year senior notes (Caa1/CCC+) to yield 9% to 9¼%, a syndicate source said on Thursday.

Books close at 9:30 a.m. ET for accounts on the East Coast of the United States and at 10:30 a.m. ET for West Coast accounts.

The deal is set to price thereafter.

As reported, earlier in the week the company downsized the notes offering to $525 million from $575 million, shifting a further $50 million of proceeds to its first-lien term loan.

The shift of proceeds increased the loan size to $1,625,000,000 from $1,575,000,000.

The move represented the second downsizing of the bonds.

An earlier change in the structure of the financing saw the loan increase to $1,575,000,000 from $1,525,000,000, while the bond portion was reduced from the initially planned $625 million.

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 become callable after three years at par plus 50% of the coupon 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.

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

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.