Riverbed tries to match recent successes

By Jonathan Schwarzberg NEW YORK (Reuters) - Network equipment maker Riverbed Technology Inc is the latest U.S. buyout loan to test investors' apparently strong appetite for the type of highly leveraged loans that the U.S. regulator is trying to discourage in an otherwise quiet U.S. market. Riverbed launched a $1.525 billion seven-year term loan and a $100 million revolver on February 12 and is also planning to sell $625 million of senior notes to back its $3.6 billion buyout by Thoma Bravo LLC and the Ontario Teachers' Pension Plan. The deal has leverage of around seven times, according to ratings agencies. U.S. regulators view leverage over six times as problematic and also focus on a borrower's ability to pay off debt within a specific time frame.



via Tech News Headlines - Yahoo News http://ift.tt/1Ju4doN