S&P raises Heartland Dental

S&P said it raised its issuer credit ratings on Heartland Dental LLC to B- from CCC+, its first-lien debt to B- and the senior unsecured notes to CCC.

“We expect the company to increase its revenue by about 50% in 2021 as the pandemic's effects subside, it increases its same-office revenue, and it ramps up its new offices, which will be supplemented by additional affiliations and de novo activities (the opening of new dental offices). We anticipate the increase in Heartland's same-office revenue will stem from an improvement in its procedure volumes and favorable payor reimbursement,” S&P said in a press release.

The agency said it forecasts Heartland will cut its adjusted debt to EBITDA to below 10x in 2022.

Heartland also plans to boost its term loan by $660 million to fund the acquisition of American Dental Partners Inc.

The outlook is stable.

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