$2 billion Restructuring &
$100 million Capital Raise
Location: San Francisco, CA//Number of Employees: 1,200//
Riverbed Technology is a developer of network and application performance software designed to support enterprise clients. It enables organizations to visualize, optimize, remediate and accelerate network performance to enhance digital experiences, and has a customer base of over 30,000 which includes 95% of the Fortune 500.
Services & Focus
Due to the move to a more decentralized workforce rapidly accelerated by COVID, Riverbed’s liquidity and credit quality began to deteriorate, and Riverbed was unable to complete the transition of its business to focus on network monitoring quickly enough to supplement the loss in legacy business revenue.
In July 2021, GLC was officially engaged by the Company’s Board of Directors, at the recommendation of the Sponsor, to assess strategic alternatives to improve liquidity during Riverbed’s strategic transformation.
As part of its efforts to proactively strengthen the Company’s financial position, Riverbed entered into a Restructuring Support Agreement (the “RSA”) with its equity sponsors and an ad hoc group of lenders holding a super-majority of its funded secured debt regarding the terms of a comprehensive financial restructuring that reduced its funded secured debt by over $1 billion and provided a $100 million cash infusion to position the Company for long-term success. Upon consummation of the recapitalization, a group of institutional investors led by Apollo Global Management became the majority owners of the Company.
GLC Advisors Role:
- GLC served as the Company’s principal in discussions with the creditors’ professional team.
- Developed cash flow forecasts to establish short term liquidity needs.
- Developed go-forward business plans to evaluate proposed post-reorganization capital structures.
- Performed valuation analyses used to determine creditor recoveries and consideration allocations.
- Transaction was consummated via a “straddled” pre-packaged Chapter 11 bankruptcy filing.
Application Performance Management
Network Performance Monitoring
End User Experience Management
SD-Wan Network Solutions
WAN Optimization Network Solutions
Reduced Outstanding Debt by $1.1 Billion
GLC negotiated Riverbed’s pro forma capitalization to meaningfully reduce cash interest expense and stabilize the Company’s cash flow profile during its strategic transition.
Raised $100mm of Growth Capital
GLC raised $100mm of growth capital from certain creditors on behalf of Riverbed to fund core growth initiatives in its observation suite of products.
Achieved 100% Consent From Creditors
GLC successfully articulated Riverbed’s growth initiatives to creditors to earn their support for a swift recapitalization transaction to preserve enterprise value; resulted in one of the fastest pre-packaged bankruptcies in the history of the District of Delaware.
New Ownership Committed to Growth
An ad hoc group of investors led by Apollo assumed majority ownership. Under new sponsorship Riverbed is capitalized to execute on its strategic transition.
Refreshed Employee Incentive Plan
GLC assisted Riverbed to develop its management and employee incentive plans based on the reorganized capital structure to increase talent acquisition and retention.