Dental Corp. discloses price talk on first-, second-lien term loans

By Sara Rosenberg

New York, May 16 – Dental Corp. of Canada Inc. released price talk on its $500 million seven-year first-lien term loan (B2), $125 million seven-year delayed-draw first-lien term loan (B2), $200 million eight-year second-lien term loan (Caa2) and $50 million eight-year delayed-draw second-lien term loan (Caa2) with its bank meeting on Wednesday, according to a market source.

Price talk on the first-lien term loan debt is Libor plus 375 basis points with a 0% Libor floor and an original issue discount of 99.5, and talk on the second-lien term loan debt is Libor plus 750 bps with a 0% Libor floor and a discount of 99, the source said.

Ticking fees on the delayed-draw loans are half the spread from days 61 to 120 and the full spread thereafter, and the delayed-draw availability is 24 months.

The first-lien term loan has 101 soft call protection for six months, and the second-lien term loan has hard call protection of 102 in year one and 101 in year two.

The company’s $925 million of credit facilities also include a $50 million revolver (B2).

Jefferies LLC is the left lead arranger on the deal.

Commitments are due on May 30, the source added.

Proceeds will be used to fund the acquisition of the company by L Catterton.

Imperial Capital Group Ltd. and OPTrust Private Markets Group, together with management and Dental Corp.’s dentist shareholders, will continue to hold a significant equity interest in the company.

Dental Corp. is a network of general and specialist dental clinics in Canada.

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