DC Advisory advised Five Point Dental Specialists on its Debt Capital Refinancing

Background

• Five Point Dental Specialists (FPDS) is a leading multi-specialty Dental Services Organization (DSO) in the US, providing pediatric dental, orthodontic, oral surgery, and endodontic services to 30 practices in 55 locations across five states and Toronto, Canada
• FPDS was founded in 2018 in partnership with private equity firm Casla Partners (Casla), investing in the foundational orthodontic practice called Lustig Young Orthodontics, with five locations in Texas and Oklahoma
• FPDS is seeking a potential replacement for the current syndicate and a potential upsizing of the facility to support a robust pipeline of acquisitions in the near to medium term

Process

• DC Advisory was retained by FPDS to advise on its Debt Capital Refinancing
• Thanks to a long-standing relationship with the lead Partner at Casla, and the FPDS Founder, the DC Advisory team – led by Managing Director Rich Blann – was able to maintain a regular dialogue on market conditions, evaluation of the MSO build and an evaluation of M&A opportunities
• DC Advisory assisted on all aspects of the transaction including due diligence, the facilitation of widespread outreach to potential lenders, negotiating and obtaining favorable terms, and worked closely with FPDS, Casla and their new lenders to secure refinancing

Outcome

• Following a competitive and diligent Debt Advisory process which began in late 2023, FPDS obtained a robust and favorable debt package from lenders and its syndicate to support existing and future growth for the company with the transaction closing in May 2024
• This transaction is noteworthy for the dental industry, supporting growth opportunities for a leading DSO
• This engagement reflects the strength of DC Advisory’s deep sector expertise in dental and the broader physician practice management sector. It also marks the first Debt Advisory transaction for the US Healthcare team