Heartland talks $1.15 billion in term loans at Libor plus 350-375 bps

By Sara Rosenberg

New York, April 5 – Heartland Dental LLC launched on Thursday its $1 billion seven-year covenant-light first-lien term loan and $150 million seven-year delayed-draw for two years covenant-light term loan with price talk of Libor plus 350 basis points to 375 bps with a 0% Libor floor and an original issue discount of 99.5, according to a market source.

Included in the term loan is 101 soft call protection for six months.

The delayed-draw term loan has a ticking fee of half the spread from days 31 to 60 and the full spread after that, the source said.

The company’s $1,285,000,000 of credit facilities also provide for a $135 million revolver.

Jefferies LLC, KKR Capital Markets, TD Securities (USA) LLC, BMO Capital Markets and Macquarie Capital (USA) Inc. are the lead arrangers on the deal.

Commitments are due on April 17, the source added.

Proceeds will be used to help fund the buyout of the company by KKR from Ontario Teachers’ Pension Plan and other existing shareholders.

Heartland Dental is an Effingham, Ill.-based dental support organization.

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