Research Update: Riverbed Parent Inc. Downgraded To 'SD' Following Completed Distressed Exchange; Debt Ratings Lowered To 'D'

Riverbed Parent Inc. has completed its previously announced debt restructuring transaction, including the amendment and exchange of its existing first-lien term loan and an exchange (at a discount to par) of its existing senior unsecured notes. We consider the transaction to be a distressed exchange and tantamount to a default based on our view that Riverbed's debtholders have received less value than they were originally promised without adequate compensation, the company's poor operating performance over the past few years, high debt burden, and looming debt maturities. We are lowering our issuer credit rating on Riverbed to 'SD' (selective default) from 'CC'. We are also lowering our issue-level rating on the company's senior unsecured notes to 'D' from 'C' and our

...- Riverbed Parent Inc. has completed its previously announced debt restructuring transaction, including the amendment and exchange of its existing first-lien term loan and an exchange (at a discount to par) of its existing senior unsecured notes. - We consider the transaction to be a distressed exchange and tantamount to a default based on our view that Riverbed's debtholders have received less value than they were originally promised without adequate compensation, the company's poor operating performance over the past few years, high debt burden, and looming debt maturities. - We are lowering our issuer credit rating on Riverbed to '##' (selective default) from '##'. - We are also lowering our issue-level rating on the company's senior unsecured notes to 'D' from 'C' and our rating on its first-lien term loan to 'D' from '##'. - We expect to reevaluate our ratings on Riverbed and its capital structure as soon as practical....

Research Update