Latham & Watkins Advises Lender in SmileDirectClub’s New Debt Facility

Multidisciplinary team represented the lender in the oral care company’s new debt facility.

April 29, 2022

Latham & Watkins represented the lender in connection with SDC US SmilePay SPV’s (SPV), a wholly-owned special purpose subsidiary of SmileDirectClub, Inc. (the “Company”) new US$255,000,000 secured delayed-draw term loan facility. Proceeds of the new facility will be used to provide cash on the balance sheet, strengthening Company’s liquidity and providing greater flexibility to fuel its continued operations and future growth plans. The facility is a hybrid between a corporate facility and structured receivables facility and is secured by certain of the SPV’s assets, which consist of receivables, cash, intellectual property, and related assets.

The Latham team that represented the lender in the financing was led by New York partners Stelios Saffos, Peter Sluka, and Graeme Smyth with counsel Marcela Ruenes and Christopher Michail, and associates Tony Zhou and Nina Grandin. Advice was also provided on tax matters by New York partner Jocelyn Noll; on intellectual property matters by New York counsel Carrie Girgenti; on healthcare & life sciences matters by Washington, D.C. partner John Manthei, with counsel Betty Pang and associate Chad Jennings; and on data privacy matters by Washington, D.C. partner Marissa Boynton, with associate Jimmy Smith.

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