Partners Group-backed EyeCare Partners is nearing an agreement with creditors that could reduce its approximately $2bn debt burden by as much as $400m through asset sales and discounted repayments, according to a report by Bloomberg.
Under the proposed arrangement, lenders including Anchorage Capital, Diameter Capital Partners and King Street Capital Management would reportedly accept discounted repayments if EyeCare completes planned disposals within an agreed timeframe.
The discount could reportedly reach $300m–$400m in the most favourable scenario, although the reduction would diminish if asset sales are delayed and could disappear entirely if the disposals fail to complete.
EyeCare, which operates more than 700 locations across nearly 20 US states, announced the sale of its optometry business to MyEyeDr last month. The transaction is expected to close in the fourth quarter of 2026, subject to regulatory approval.
Proceeds from the sale would be used to repay $110m on a first-out revolving credit facility and $286m on a first-out term loan at par, alongside approximately $164m of first-lien second-out debt at a 12-cent discount to par, according to S&P Global Ratings.
The company has reportedly also launched a distressed debt exchange that would allow participating first-lien second-out lenders to move into a new first-lien 1.5-out term loan.
The restructuring includes options to extend payment-in-kind interest beyond early 2027 and push maturities beyond November 2028.
EyeCare’s existing first-lien second-out term loan totals almost $1.5bn, while the company also has more than $80m in super-priority financing facilities established during an earlier debt restructuring in 2024.
Partners Group acquired EyeCare in 2020 and has since faced mounting pressure to address the company’s capital structure.
Kirkland & Ellis and Centerview Partners are advising EyeCare, while an ad hoc creditor group is represented by Gibson, Dunn & Crutcher and Moelis.
