Research Update: Riverbed Parent Inc. Downgraded To 'CCC' And Placed On CreditWatch Negative On Elevated Refinancing Risk

Riverbed Parent Inc.'s operating performance remained very weak through the second quarter of fiscal year 2021 as it burned $28.7 million of cash during this period. In addition, the company must repay or refinance about $77 million of principal under its non-exchanged first-lien term loan tranche by April 2022. We believe the likelihood of a liquidity shortfall will increase if Riverbed's operating performance remains weak and it continues to burn cash or is unable to obtain additional capital. Therefore, we lowered our issuer credit rating on Riverbed to 'CCC' from 'CCC+', our issue-level rating on its first-lien term loans to 'CCC+' from 'B-', and our issue-level rating on its senior unsecured notes to 'CC' from 'CCC-'. Our '2' recovery rating

...- Riverbed Parent Inc.'s operating performance remained very weak through the second quarter of fiscal year 2021 as it burned $28.7 million of cash during this period. In addition, the company must repay or refinance about $77 million of principal under its non-exchanged first-lien term loan tranche by April 2022. - We believe the likelihood of a liquidity shortfall will increase if Riverbed's operating performance remains weak and it continues to burn cash or is unable to obtain additional capital. - Therefore, we lowered our issuer credit rating on Riverbed to '###' from '###+', our issue-level rating on its first-lien term loans to '###+' from 'B-', and our issue-level rating on its senior unsecured notes to '##' from '###-'. Our '2' recovery rating on the first-lien term loans and '6' recovery rating on the senior unsecured notes remain unchanged. - We placed our '###' issuer credit rating on CreditWatch with negative implications. - The CreditWatch negative placement indicates the...

Research Update