Moody’s rates ADMI add-on loan B2

Moody’s Investors Service said it assigned B2 ratings to ADMI Corp.’s proposed add-on first-lien senior secured term loan and the incremental first lien senior secured revolving credit facility.

The agency also confirmed ADMI’s B2 corporate family rating, the B2-PD probability of default rating, and the B2 ratings on the first-lien senior secured term loan and first-lien senior secured revolving credit facility. The rating outlook is stable.

The confirmations and outlook change conclude the review started on Nov. 16, Moody’s said.

“The rating action follows the announced acquisition of CC Dental Implants Holding, LLC (CC) for $1.135 billion. CC provides non-clinical business support services to dental practices operating under the ClearChoice brand. ClearChoice practices are the leading national provider of fixed full-arch dental implants and related treatments. The acquisition will be funded with a $1.2 billion incremental first lien senior secured term loan and rollover management equity. ADMI also amended its existing $75 million revolving credit facility, upsizing to $250 million, which is expected to be undrawn at close,” Moody’s said in a press release.

The outlook reflects an expectation ADMI will see leverage improvement given the combined entity’s strong earnings outlook and the ability to achieve synergies for procurement savings and SG&A cost synergies, including a national advertising campaign, the agency said.

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