Aspen Dental cuts spread on add-on, seeks existing term B repricing

By Sara Rosenberg

New York, Feb. 28 – Aspen Dental (ADMI Corp.) reduced pricing on its fungible $175 million add-on term loan B due April 30, 2022 to Libor plus 375 basis points from Libor plus 425 bps and is now seeking a repricing of its existing term loan B to Libor plus 375 bps from Libor plus 425 bps, according to a market source.

The term loan B debt still has a 25 bps step-down at less than 3.15 times first-lien net leverage and a 1% Libor floor, and the new money is still talked with an original issue discount of 99.75 to par.

Old money is offered at par, the source said.

All of the term loan B debt is still getting 101 soft call protection for six months.

RBC Capital Markets LLC is the lead arranger and bookrunner on the deal.

Proceeds from the add-on loan will be used to fund a dividend.

American Securities is the sponsor.

As before, with this transaction, existing lenders are being offered a 25 bps amendment fee.

Commitments/consents are due at noon ET on Friday, extended from noon ET on Thursday, the source added.

Including the add-on, the term loan B will total $619 million.

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

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