Aspen Dental Management Inc.’s $127.4 million term loan to fund a dividend to Leonard Green & Partners LP rose in initial trading, according to data provider Markit Group Ltd.
The debt, due in October 2016, began trading yesterday at 99.5 cents on the dollar, according to Markit. The financing for the provider of dental-care services was sold to investors at 98.5 cents, according to data compiled by Bloomberg.
UBS AG and GE Capital Markets, the lending unit of General Electric Co., arranged the deal for the East Syracuse, New York-based company, Bloomberg data show.
The loan pays interest at 5.5 percentage points more than the London interbank offered rate, with a 1.5 percent minimum on the benchmark, the data show. Libor, the rate at which banks say they can borrow in dollars from each other, acts as a reference for about $360 trillion of financial instruments worldwide.
Leonard Green, a Los Angeles-based private-equity firm with $9 billion of capital under management, bought the company from Ares Management LLC in 2010, Bloomberg data show. Los Angeles-based Ares acquired Aspen Dental in 2006, the data shows.
In a revolving credit facility, money can be borrowed again once it’s repaid; in a term loan it can’t.