Partners Group-backed EyeCare seeks up to $400m debt discount

Partners Group-backed EyeCare Partners is nearing a deal with creditors that could slash its $2bn debt by up to $400m through asset sales and discounted repayments, Bloomberg reported. Lenders such as Anchorage Capital, Diameter Capital Partners, and King Street Capital Management would accept reduced repayments if EyeCare completes planned disposals within a specified period.

The discount could reach $300m–$400m in the best-case scenario, but would decrease if sales are delayed or vanish entirely if disposals fail. EyeCare, operating over 700 locations in nearly 20 US states, recently sold its optometry business to MyEyeDr, with the transaction set to conclude in the fourth quarter of 2026, pending regulatory approval.

Sales proceeds would settle $110m on a revolving credit facility and $286m on a term loan, while also reducing approximately $164m of first-lien second-out debt at a 12-cent discount to par, according to S&P Global Ratings. EyeCare is exploring a distressed debt exchange, enabling participating first-lien second-out lenders to switch to a new first-lien 1.5-out term loan.

The restructuring extends payment-in-kind interest beyond early 2027 and pushes maturities past November 2028. EyeCare's existing first-lien second-out term loan amounts to nearly $1.5bn, alongside over $80m in super-priority financing facilities from a previous debt restructuring in 2024. Partners Group acquired EyeCare in 2020 and has faced mounting pressure to overhaul its capital structure.

Kirkland & Ellis, Centerview Partners, Gibson, Dunn & Crutcher, and Moelis are advising the company and representing an ad hoc creditor group, respectively.