American Dental Partners Announces Senior Debt Refinancing

1273662009 75 American Dental Partners Announces Senior Debt Refinancing

WAKEFIELD, MA, May 10, 2010 (MARKETWIRE via COMTEX) –American Dental Partners, Inc. /quotes/comstock/15*!adpi/quotes/nls/adpi (ADPI 12.57, -0.02, -0.16%) announced today thatit closed a refinancing of its senior secured indebtedness.

The Company entered into a $180 million senior secured creditfacility, which comprises a $100 million revolving line of credit andan $80 million term loan. Borrowings under the new credit facilitywere used to retire the Company’s existing $130 million seniorsecured credit facility. The balance of the new facility is availablefor acquisitions, working capital and other general corporatepurposes. At closing, the Company had approximately $93 million ofborrowings outstanding under the credit facility.

The new senior secured credit facility matures in May 2014 andincludes improved borrowing rates and other financial covenants. Atcurrent leverage levels, the Company will borrow at the Eurodollarrate plus a credit spread of 325 basis points, in comparison to thegreater of the Eurodollar rate or 200 basis points plus a creditspread of 600 basis points under the retired credit facility. TheCompany is permitted to make acquisitions of up to $50 millionannually, subject to various financial covenants, an increase from$25 million annually under the retired credit facility.

Bank of America, KeyBank and RBS Citizens are lead lenders under thenew credit facility and participating lenders include TD Bank, WellsFargo Bank, Regions Bank and Union Bank of California.

American Dental Partners is one of the nation’s leading businesspartners to dental group practices. The Company is affiliated with 25dental group practices, which have 267 dental facilities withapproximately 2,252 operatories located in 19 states.

“Safe Harbor” Statement under the Private Securities LitigationReform Act of 1995: With the exception of the historical informationcontained in this press release, the matters described herein contain”forward-looking” statements that involve risk and uncertainties thatmay individually or collectively affect the matters herein described,including but not limited to the Company’s risks associated withoverall or regional economic conditions, dependence upon affiliateddental practices, contracts the affiliated practices have withthird-party payors, government regulation of the dental industry,impact of health care reform, dependence upon service agreements andthe impact of any terminations or potential terminations of suchcontracts, business interruptions, the outcome of pending litigationand the Company’s acquisition and affiliation strategy, which aredetailed from time to time in the “Risk Factors” section of theCompany’s filings with the Securities and Exchange Commission,including its annual report on Form 10-K and quarterly reports onForm 10-Q.

Contacts:Gregory A. SerraoChairman, President andChief Executive Officer781-224-0880Breht T. FeighExecutive Vice President, ChiefFinancial Officer and Treasurer781-224-0880American Dental Partners, Inc.401 Edgewater Place, Suite 430Wakefield, MA 01880Phone: 781-224-0880Fax: 781-224-4216

SOURCE: American Dental Partners, Inc.