By Paul A. Harris
Portland, Ore., May 5 – Heartland Dental, LLC and co-issuer Heartland Dental Finance Corp. priced an upsized $535 million offering of five-year senior secured notes (B2/B-) at par to yield 10˝% on Friday, according to market sources.
The issue size increased from $500 million.
The yield came in the middle of yield talk in the 10˝% area. Initial guidance in the mid-10% area.
Late Friday afternoon the notes were trading at par bid, par 3/8 offered, a trader said.
The notes become due on April 30, 2028. However, they are subject to springing maturity provisions.
The Effingham, Ill.-based dental support organization plans to use the proceeds plus a concurrent $1.85 billion term loan, $200 million of new cash equity and a $75 million new strategic partner contribution, to partially refinance extending lenders as part of an amend and extend of its existing term loan, and for general corporate purposes.
Incremental proceeds resulting from the $35 million upsize will be used to reduce the size of the term loan.
Jefferies LLC and KKR Capital Markets LLC were the joint bookrunning managers. Joint bookrunners are BMO Capital Markets Corp., TD Securities (USA) LLC, Credit Agricole Securities (USA) Inc., Mizuho Securities USA LLC, MUFG Securities Americas Inc., SMBC Nikko Securities America, Inc. and Macquarie Capital (USA) Inc.
The sponsors are KKR and the Ontario Teachers’ Pension Plan.
| Issuers: | Heartland Dental, LLC and Heartland Dental Finance Corp.
|
| Amount: | $535 million, increased from $500 million
|
| Issue: | Senior secured notes
|
| Maturity: | April 30, 2028 (subject to springing maturity provisions)
|
| Joint bookrunning managers: | Jefferies LLC and KKR Capital Markets LLC
|
| Joint bookrunners: | BMO Capital Markets Corp., TD Securities (USA) LLC, Credit Agricole Securities (USA) Inc., Mizuho Securities USA LLC, MUFG Securities Americas Inc., SMBC Nikko Securities America, Inc. and Macquarie Capital (USA) Inc.
|
| Coupon: | 10˝%
|
| Price: | Par
|
| Yield: | 10˝%
|
| First call: | May 15, 2025 at 105.25
|
| Trade date: | May 5
|
| Settlement date: | May 16
|
| Ratings: | Moody’s: B2
|
| S&P: B-
|
| Distribution: | Rule 144A and Regulation S for life
|
| Price talk: | 10˝% area
|
| Marketing: | Roadshow
|
|
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
