Aspen Dental approaches investors with $415 million credit facility

By Sara Rosenberg

New York, April 15 – Aspen Dental Management Inc. held a bank meeting on Wednesday to launch a $415 million credit facility, according to a market source.

RBC Capital Markets, Credit Suisse Securities (USA) LLC, BMO Capital Markets, Deutsche Bank Securities Inc. and GE Capital Markets are the leads on the deal.

The facility consists of a $35 million revolver and a $380 million covenant-light term loan, the source said.

Price talk on the term loan is Libor plus 475 basis points to 500 bps with a 1% Libor floor and an original issue discount of 99, and the debt includes 101 soft call protection for six months, the source continued.

Commitments are due on April 24.

Proceeds will be used to help fund the recapitalization of the company by American Securities LLC, in partnership with current owners, Ares Management LP and Leonard Green & Partners LP, and management.

Other funds for the transaction will come from $150 million of privately placed unsecured debt.

First-lien leverage is 3.9 times, and total leverage is 5.4 times.

Aspen Dental is an East Syracuse, N.Y.-based dental support organization.

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