Aspen Dental finalizes $1.2 billion term loan at Libor plus 400 bps

By Sara Rosenberg

New York, Dec. 15 – Aspen Dental Management firmed pricing on its non-fungible $1.2 billion seven-year incremental term loan B at Libor plus 400 basis points, the low end of the Libor plus 400 bps to 425 bps talk, according to a market source.

Furthermore, the leverage-based pricing step-downs were outlined at 25 bps at half a turn inside closing date leverage, 25 bps at a full turn inside closing date leverage and 25 bps upon an initial public offering, versus the prior to be determined description, and the original issue discount was revised to 99.5 from 99, the source said.

The term loan has a 0.75% Libor floor and 101 soft call protection for six months.

The company’s $1.45 billion of credit facilities (B2/B) also include a $250 million five-year revolver that is expected to be undrawn at close.

RBC Capital Markets, J.P. Morgan Securities LLC, Deutsche Bank Securities Inc. and Credit Suisse Securities (USA) LLC are the leads on the debt.

Recommitments were scheduled to be due at noon ET on Tuesday, the source added.

Proceeds will be used to fund the acquisition of ClearChoice Management Services from Sun Capital Partners Inc.

Closing is expected by the end of the year, subject to regulatory and other customary conditions.

Aspen Dental is an East Syracuse, N.Y.-based dental support organization. ClearChoice is a provider of administrative practice management services to the network of ClearChoice Dental Implant Centers.

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