We advised an ad hoc group of first-lien term lenders in connection with Riverbed’s restructuring

Davis Polk advised an ad hoc group of first-lien term loan lenders (the “Ad Hoc Group”) in connection with the chapter 11 restructuring of Riverbed Technology, Inc. and its affiliates (“Riverbed” or the “Company”).

On November 16, 2021, Riverbed filed chapter 11 cases in the United States Bankruptcy Court for the District of Delaware after successfully garnering 100% creditor support across all voting classes for a prepackaged plan of reorganization (the “Plan”). 

On December 3, 2021, the Bankruptcy Court confirmed the Plan, which incorporates the terms of the Company’s previously-announced restructuring support agreement and implements a comprehensive financial restructuring of the Company that deleverages the Company’s balance sheet by over $1 billion. Under the Plan, members of the Ad Hoc Group and the other first-lien term loan lenders received their pro rata share of (i) a $900 million secured exit term loan facility and (ii) convertible preferred equity in the reorganized Company with an initial liquidation preference value of approximately $239 million. In addition, holders of the Company’s second-lien term loan debt received 100% of the common stock in the reorganized Company and existing equity was canceled. A $100 million new money investment was provided by existing creditors in exchange for additional convertible preferred equity. The Plan was consummated and the Company emerged from bankruptcy on December 7, 2021. 

Founded in 2002, Riverbed is a technology company specializing in software solutions.

The Davis Polk restructuring team includes partner Damian S. Schaible, counsel Jon Finelli and associates Stephanie Massman, Stephen Ford, Alexander K.B. Shimamura and Roy G. Dixon III. The M&A team is led by partner Stephen Salmon. Partner William A. Curran, counsel Tracy L. Matlock and associate Ben Levenback are providing tax advice. Members of the Davis Polk team are located in the New York and Northern California offices.

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