Sirona Dental enters term loan, revolving facilities with rate swaps

By Susanna Moon

Chicago, Nov. 18 - Sirona Dental Systems Inc. closed a $75 million term loan, a €120 million revolving credit facility and a $100 million revolving credit facility on Nov. 14, according to an 8-K filing with the Securities and Exchange Commission.

Sirona said it entered into a senior credit facility on Monday with Schick Technologies, Inc., a wholly owned subsidiary of Sirona, Sirona Dental Systems, LLC, Sirona Dental Services GmbH, Sirona Dental Systems GmbH, Sirona Immobilien GmbH, Sirona Technologie GmbH & Co. KG, J.P. Morgan Ltd., UniCredit Bank AG and J.P. Morgan Europe Ltd.

The $75 million term loan is available to the company or Schick NY, and the €120 million revolving credit facility is available to Sirona Dental Systems GmbH and Sirona Dental Services GmbH.

For the term loan, 30% of drawn amounts is due on Nov. 16, 2015, and the rest is due on Nov. 16, 2016.

Interest on the loans is initially Libor plus 160 basis points for the term loan, Euribor plus 85 bps for the euro revolver and Libor plus 110 bps for the dollar revolver. The margin will be based on leverage and ranges from 160 bps to 215 bps for the term loan, 85 bps to 140 bps for the euro revolver and 110 bps to 165 bps for the dollar revolver.

On Wednesday, Sirona entered into five-year payer interest rate swaps to hedge its Libor exposure, and the effective nominal interest rate is expected to be 1.28% plus the margin. Settlement of the swaps is required on a quarterly basis.

Sirona is a Bensheim, Germany-based manufacturer of dental equipment and technologies.

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