...August 14, 2023 TORONTO (S&P Global Ratings) Aug. 14, 2023--S&P Global Ratings today said U.S.-based dental support organization Heartland Dental LLC's (B-/Stable/--) proposed $150 million add-on to its existing first-lien term loan due 2028 will not materially affect the company's credit metrics. Heartland will use proceeds from the add-on to repay $147 million of its existing first-lien term loans due 2025 and to pay related fees and expenses. The issuance does not affect our issuer credit rating and rating outlook on Heartland or the 'B-' issue-level rating and '3' recovery rating on the company's first-lien debt. The '3' recovery rating continues to indicate our expectation for meaningful (50%-70%; rounded estimate: 50%) recovery in the event of payment default. Heartland's top line is benefiting from office growth, volume and production improvements, and payor reimbursement rate increases. At the same time, its cost profile is improving due to rate increases and expense-reduction initiatives...
