Prospect makes additional investment in InterDent

The $127 million add-on deal includes a first lien senior secured term loan and a $7 million delayed draw term loan facility for the dental services company.    

Prospect Capital Corporation, the New York-based lender and business development company, has expanded its existing term loan credit facilities to InterDent Inc., a portfolio company of private equity sponsor H.I.G. Capital. The new facility is a $127 million loan comprised of a $120 million increase in the original first lien senior secured term loan and a $7 million delayed draw term loan facility, Prospect announced today (1 December).

The total Prospect facility for InterDent is now $260 million and the new investment is part of an acquisition growth and recapitalization strategy.

Based in Inglewood, California, InterDent is a provider of dental practice support services. The company offers support services to 170 affiliated dental offices with about 600 dentists in Arizona, California, Hawaii, Kansas, Nevada, Oklahoma, Oregon, and Washington.

“Prospect's ability to quickly upsize and hold the entire one-stop facility, coupled with its ability to facilitate InterDent's acquisition strategy, allows the company to stay focused on executing a multi-pronged growth strategy and expanding its leading position in the marketplace,” Chris Laitala, a managing director of H.I.G., said in a statement.

H.I.G. Capital is a global private equity investment firm with about $17 billion of capital under management. The firm is headquartered in Miami and has six other offices in the US, as well as six international offices. H.I.G. specializes in providing capital to small and medium-sized companies.

Prospect has about $7 billion of capital under management and has closed on approximately $3 billion of originations so far this year.