By Paul A. Harris
Portland, Ore., Sept. 6 – Heartland Dental priced an upsized $165 million add-on to the Heartland Dental, LLC/Heartland Dental Finance Corp. 10½% senior secured notes due April 30, 2028 (B2/B-) at par to yield 10½% on Wednesday, according to market sources.
The issue size increased from $100 million.
The issue price came at the rich end of the 99.5 to par price talk.
The deal was heard to be two-times oversubscribed, with 40 accounts in the book, according to a bond trader, who saw the new Heartland Dental 10½% notes trade once at par ¼.
Jefferies LLC and KKR Capital Markets LLC were the joint bookrunners.
The Effingham, Ill.-based dental support organization plans to use the proceeds to pay off the remaining 2018 term loan and for general corporate purposes. The incremental proceeds resulting from the $65 million upsize of the deal will be used for general corporate purposes.
| Issuers: | Heartland Dental, LLC and Heartland Dental Finance Corp.
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| Amount: | $165 million, increased from $100 million
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| Issue: | Senior secured notes
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| Maturity: | April 30, 2028
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| Bookrunners: | Jefferies LLC and KKR Capital Markets LLC
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| Coupon: | 10½%
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| Price: | Par
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| Yield: | 10½%
|
| First call: | May 15, 2025 at 105.25
|
| Trade date: | Sept. 6
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| Settlement date: | Sept. 8
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| Ratings: | Moody’s: B2
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| S&P: B-
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| Distribution: | Rule 144A and Regulation S for life
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| Price talk: | 99.5 to par
|
| Marketing: | Roadshow
|
| Original issue: | $535 million priced in May 2023
|
| Fungibility: | Add-on notes will immediately become fungible with original notes
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