American Dental Partners Announces Amended Senior Secured Credit Facility
17 Mai 2011 - 4:57PM
American Dental Partners, Inc. (Nasdaq:ADPI) announced today that
it successfully renegotiated its senior secured credit facility.
The Company entered into an amended senior secured credit
facility, which comprises a $100 million revolving line of credit
and an $80 million term loan. The Company chose to renegotiate
its senior secured indebtedness to take advantage of the currently
favorable credit markets.
Highlights of the amended credit facility include the
following:
- Term loan expanded to $80 million from $67 million.
- Tenor extended to five years from four years with a maturity of
May 2016.
- Borrowing rates improved. At current leverage levels, the
Company will borrow at the Eurodollar rate plus a credit spread of
225 basis points, in comparison to a previous credit spread of 275
basis points.
- Permitted share repurchases increased to $50 million over the
life of the facility, subject to a maximum of $20 million annually
and compliance with other various financial covenants, in
comparison to the previous $10 million over the life of the
facility.
At closing, the Company had approximately $10 million of
borrowings outstanding under the revolving line of credit and $80
million of borrowings outstanding under the term loan. Bank of
America, KeyBank and RBS Citizens are lead lenders under the
amended credit facility and participating lenders include TD Bank,
Wells Fargo Bank and Union Bank.
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 278 dental facilities
with approximately 2,390 operatories located in 21
states.
"Safe Harbor" Statement under the Private Securities Litigation
Reform Act of 1995: With the exception of the historical
information contained in this press release, the matters described
herein contain "forward-looking" statements that involve risk and
uncertainties that may individually or collectively affect the
matters herein described, including but not limited to the
Company's risks associated with overall or regional economic
conditions, dependence upon affiliated dental practices, contracts
the affiliated practices have with third-party payors, government
regulation of the dental industry, impact of health care reform,
dependence upon service agreements and the impact of any
terminations or potential terminations of such contracts, business
interruptions, the outcome of pending litigation and the Company's
acquisition and affiliation strategy, which are detailed from time
to time in the "Risk Factors" section of the Company's filings with
the Securities and Exchange Commission, including its annual report
on Form 10-K and quarterly reports on Form 10-Q.
CONTACT: American Dental Partners, Inc.
401 Edgewater Place, Suite 430
Wakefield, MA 01880
Phone: 781-224-0880
Fax: 781-224-4216
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
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