Heartland Dental starts roadshow for $500 million secured notes offer; initial guidance mid-10% area

By Paul A. Harris

Portland, Ore., April 26 – Heartland Dental, LLC and co-issuer Heartland Dental Finance Corp. plan to sell $500 million of senior secured notes due April 30, 2028 (B2/B), according to market sources.

Initial talk has the notes coming to yield in the 10% area, according to a bond trader.

An investor call is scheduled to get underway at noon ET on Thursday, and the notes are set to price mid-to-late in the May 1 week.

The Rule 144A and Regulation S for life five-year notes come with two years of call protection, and feature a springing maturity.

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.

Jefferies & Co. is the left arranger. KKR, BMO Capital Markets Corp., TD Securities (USA) LLC, Credit Agricole, Mizuho Securities USA Inc., MUFG, SMBC Nikko Securities America Inc. and Macquarie are the joint arrangers.

The sponsors are KKR and the Ontario Teachers’ Pension Plan.

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