American Dental Begins Public Stock Offer

WAKEFIELD, Mass. (AP) — American Dental Partners Inc. said Tuesday it began a public offering of up to 2.6 million shares, or about 20 percent of its current share count.

The shares rose 24 cents to $13.10 in regular trading, then fell a penny in the first hour of extended trading.

The company said it began a public offering of 2.26 million shares and would give underwriters an option to buy up to 339,000 more shares to cover over-allotments. The company had 13 million shares as of Aug. 3, according to a regulatory filing.

American Dental said it expected to use the proceeds to pay down debt and for other general purposes.

Robert W. Baird & Co. is underwriting the offering.

American Dental provides support staff and services such as recruitment and training to dental group practices.

The company's profit in the June 30 quarter fell 24 percent from a year ago.

Even patients with insurance pay a portion of many dental bills out of pocket. According to the company, the recession has caused patients to delay care and avoid services that aren't covered by insurance, leading to a shift toward less costly treatments that are less profitable for dentists.