American Dental Partners Announces Agreements to Amend Credit Facilities
21 Februar 2008 - 7:53PM
Marketwired
WAKEFIELD, MA announced today that it has entered into
agreements to amend its credit facilities with its existing
lenders. The agreements will replace the previously announced
forbearance agreements and waive the defaults under the existing
revolving credit facility and term loan facility.
Pursuant to the agreements, the revolving credit facility will
have a capacity of $75,000,000 with $45,474,000 drawn, including
outstanding letters of credit, at February 21, 2008 and the term
loan facility has $100,000,000 outstanding. Both facilities will
mature on June 30, 2009, and at current leverage levels, the
Company will borrow on both facilities at the Eurodollar rate plus
250 basis points. The amended facilities will permit the Company to
borrow up to $15,000,000 annually for capital expenditures,
$15,000,000 annually for acquisitions and up to $13,000,000 for
earnout and contingent payments on previously completed
acquisitions, subject to a maximum debt to earnings before
interest, taxes, depreciation and amortization leverage ratio of
3.75x.
The amendments to the revolving credit facility and term loan
facility will become effective upon completion of the transactions
contemplated by the previously announced settlement of litigation
among PDG, P.A., PDHC, Ltd., one of the Company's Minnesota
subsidiaries, and the Company. The Company continues to negotiate
definitive agreements with PDG under the Settlement Agreement. If
the transactions contemplated by the settlement are not completed
on or before February 29, 2008, the amendments will not take
effect.
"We are pleased that we have been able to enter into agreements
with our existing lenders that will eliminate the uncertainty
created by the forbearance situation and provide us with long-term
bank financing. We believe that the amended terms of the revolving
credit facility will provide sufficient borrowing capacity along
with internally generated cash flow to allow us to continue to
reinvest in our business, including capital expenditures and
affiliations, and also meet our obligations for earnouts and
contingent payments on previously completed affiliations," stated
Gregory A. Serrao, Chairman, Chief Executive Officer and President
of the Company.
The amended revolving credit facility was arranged by Key Bank
and other participating banks include JPMorgan, RBS Citizens Bank
and TD Banknorth. The amended term loan was arranged by Key Bank
and includes RBS Citizens Bank as a participant.
American Dental Partners is one of the nation's leading business
partners to dental group practices. The Company is affiliated with
26 dental group practices which have 261 dental facilities with
approximately 2,301 operatories located in 18 states.
"Safe Harbor" Statement under the Private Securities Litigation
Reform Act of 1995: With the exception of the historical
information contained in this news release, the matters described
herein contain "forward-looking" statements that involve risk and
uncertainties that may individually or collectively impact the
matters herein described, including but not limited to the
possibility that we may not realize the benefits expected from our
acquisition and affiliation strategy, economic, regulatory and/or
other factors outside the control of the Company, which are
detailed from time to time in the "Risk Factors" section of the
Company's SEC reports, including the annual report on Form 10-K for
the year ended December 31, 2006.
Contacts: Gregory A. Serrao Chairman, President and Chief
Executive Officer 781-224-0880 Breht T. Feigh Executive Vice
President, Chief Financial Officer and Treasurer 781-224-0880
American Dental Partners, Inc. 401 Edgewater Place, Suite 430
Wakefield, MA 01880 Phone: 781/224-0880 Fax: 781/224-4216
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