Partners Group drills $200m into US dental provider

The private investment group has provided debt and equity to Affordable Care Inc.

Partners Group has invested more than $200 million in debt and equity with US dental services provider Affordable Care Inc (ACI).

Partners is the sole investor in the second-lien term loan and a significant equity co-investor alongside acquirer Berkshire Partners, the Zug-headquartered firm said.

The second-lien term loan stands at $135 million, a market source said. The remaining $65 million is comprised of equity and debt. 

As part of the acquisition financing ACI has also signed a $328.5 million covenant-lite first lien loan package with joint-bookrunners Jefferies and Golub Capital, two sources told PDI. The financing backs Berkshire’s acquisition of ACI for around $825 million and includes a $40 million five-year revolver.

Partners Group declined to comment.

Headquartered in Raleigh, North Carolina, ACI is the largest denture- and implant-services provider in the US, operating 200 affiliated practices in 39 states under retail names Affordable Dentures and Affordable Dentures & Implants.

Scott Essex, managing director and co-head of private debt at Partners, said in a statement: “ACI has carved out a niche for itself as the market leader in the provision of dentures and dental implants, offering a unique service to both patients and dentists. Because of the strength of its brand, it has shown consistent growth and strong financial performance, even during the recent economic downturn. We believe ACI has solid potential for further expansion and are very pleased to support it in the next phase of its growth.”

Partners has €42 billion in investment programmes under management in private debt, private equity, private real estate and private infrastructure.

Boston-based Berkshire Partners acquired ACI from American Capital Equity. Jefferies and William Blair & Company acted as financial advisors to ACI. Law firm Ropes & Gray advised Berkshire Partners. King & Spalding advised American Capital Equity and ACI, while Proskauer advised Partners Group.