American Dental revolver and term loan effective as litigation settlement is reached

By Sara Rosenberg

New York, March 5 - American Dental Partners Inc.'s amended revolving credit facility and term loan have become effective now that a litigation settlement has been reached with one of its subsidiaries, PDG, PDHC Ltd., according to a news release.

The bank debt includes a $75 million revolver that has $45.474 million drawn, and a $100 million term loan, both of which will mature in June 2009.

Under the terms of the settlement and dismissal of the litigation, the company transferred to PDG the leases and associated tangible assets with respect to 25 of 31 Park Dental facilities and various trade names, including "Park Dental."

The parties also agreed that PDHC will provide interim management services to PDG for a period of up to nine months. PDG will pay PDHC a management fee of $19 million.

And lastly, the company agreed to forgive outstanding accounts receivable due from PDG at Dec. 31 of $2.035 million.

American Dental is a Wakefield, Mass.-based business partner to dental group practices.

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