Sybron Dental Specialties obtains new credit facility

By Sara Rosenberg

New York, June 18 - Sybron Dental Specialties Inc. said it entered into a new credit facility, which consists of a $150 million five-year revolver and a $200 million seven-year term loan with an interest rate of Libor plus 250 basis points.

Proceeds from the bank loan, combined with proceeds from the sale of $150 million 8.125% senior subordinated notes, were used to retire the company's previous credit facility.

"Our long history of strong cash flow generation enabled us to take advantage of the current low interest rate environment to refinance our credit facility and issue senior subordinated notes on very favorable terms for the company," said Gregory D. Waller, chief financial officer, in a news release. "With the new credit facility in place, we have extended the average maturity of our debt from 4.2 years to 8.2 years, significantly increased our liquidity, and secured access to ample funding to continue pursuing attractive acquisition opportunities, which is a key component of our long-term growth strategy.

"While our interest expense will increase slightly as a result of the refinancing, we feel that the increased financial flexibility will allow us to make investments organically and through acquisition that will translate into increased value for our shareholders."

Sybron Dental is an Orange, Calif. manufacturer of products for the dental and orthodontic professions and products for use in infection prevention.

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