Heartland Dental LLC's Incremental First-Lien Term Loan Rated 'B-' (Recovery Rating: '3')

TORONTO (S&P Global Ratings) June 18, 2019--S&P Global Ratings today assigned its 'B-' issue-level rating and '3' recovery rating to Heartland Dental LLC's recently announced $150 million incremental first-lien term loan. The '3' recovery rating indicates our expectation for meaningful (50%-70%; rounded estimate: 55%) recovery in the event of a payment default. The company will use the proceeds from this incremental term loan to fund acquisitions. All of our existing ratings on Heartland Dental LLC remain unchanged following the incremental first-lien term loan because they continue to reflect the company's active business development strategy and our expectation that its leverage will remain above 10x in 2019-2020. The existing ratings also reflect the company's leading market position and narrow operating focus

...- Collateral value available to secured debt: $832 million - First-lien secured debt: $1,442 million - --Recovery expectations: 50%-70% (rounded estimate: 55%) - Collateral value available to senior unsecured debt: $0 - Senior unsecured debt: $323 million - --Recovery expectations: 0%-10% (rounded estimate: 0%) Note: All debt amounts include six months of prepetition interest....

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