American Dental Partners (ADP) has commenced a public offering of 2.26 million shares of common stock at $12 per share, the company announced.
Expected net proceeds will be approximately $25.3 million, after deducting underwriting discounts and commissions and estimated expenses of the offering. The company said it has also received commitments from lenders for a new $130 million senior secured credit facility, which includes a $50 million revolving credit facility and an $80 million term loan.
American Dental will grant the underwriter in the offering an option to purchase up to 339,000 additional shares of common stock at the same price per share to cover any overallotments. Robert W. Baird & Co. acted as the sole underwriter for the offering.
The public offering and senior credit facility are expected to close on August 21, 2009. The net proceeds from the offering will be used for repayment of outstanding indebtedness and other general and working capital purposes, the company said.
American Dental provides dental facilities, support staff, and business services to multidisciplinary dental group practices primarily in the U.S.
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