Heartland firms incremental loan at Libor plus 450 bps, adds repricing

By Sara Rosenberg

New York, Nov. 25 - Heartland Dental Care LLC firmed pricing on its $160 million incremental first-lien term loan B-1 (B1/B) due Dec. 21, 2018 at Libor plus 450 basis points, the wide end of the Libor plus 425 bps to 450 bps talk, and launched on Monday morning a repricing of its existing $397 million first-lien term loan B, according to a market source.

The incremental loan still has a 1% Libor floor, an original issue discount of 99½ and 101 soft call protection for six months.

The repricing will take the existing term B due Dec. 21, 2018 down to Libor plus 450 bps with a 1% Libor floor from Libor plus 500 bps with a 1.25% Libor floor and add 101 soft call protection for six months to the tranche, the source said.

Lenders are being offered the repriced loan at par.

Commitments for the repricing were due by 5 p.m. ET on Monday.

The repricing will become effective on Dec. 23, and the repriced loan will become fungible with, and added to, the incremental term loan B-1, the source added.

RBC Capital Markets LLC, BMO Capital Markets Corp. and Jefferies Finance LLC are the leads on the $557 million deal.

Proceeds from the incremental loan will be used to fund the acquisition of My Dentist Holdings LLC, an Oklahoma City-based dental support organization.

The incremental loan is expected to fund in early-to-mid December.

Closing is subject to certain regulatory and other approvals.

Heartland Dental is an Effingham, Ill.-based provider of office support services to dental offices.

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