ST. LOUIS—EyeCare Partners LLC, a provider of clinically integrated eyecare, announced it has closed a private debt exchange with holders of a majority of its existing term loans. In addition, the company plans to launch a public debt exchange offer to remaining lenders, which is expected to further benefit the company through incremental debt discount capture and debt service flexibility. The completed transaction provides significant liquidity benefit through a combination of $275 million of new money, meaningful cash-to-paid-in-kind interest conversion and discount capture, according to the announcement.

Existing lenders also agreed to extend maturities, further strengthening the company’s liquidity position. The transaction significantly decreases the company's debt balances while reducing its cash interest expense. There is no impact on EyeCare Partners' equity ownership, the company said.

“In strengthening the financial position of EyeCare Partners through this transaction, we have enhanced our ability to continue delivering on our mission to enhance vision, advance eyecare and improve lives," said Chris Throckmorton, EyeCare Partners chief executive officer, who succeeded interim CEO Ben Breier at the end of January, as reported by VMAIL. "We are encouraged by the confidence and support of our financial partners and look forward to accelerating execution of our strategic growth initiatives, driving innovation and collaboration to meet the evolving needs of our patients and practices.”

Based in St. Louis, EyeCare Partners network consists of more than 300 ophthalmologists and 700 optometrists. EyeCare Partners had 60-plus ophthalmology practices and 385-plus locations across its optometry brands at the end of 2023, in addition to 31 ambulatory surgery centers (ASCs), as reported in Vision Monday. The group’s 700 ECP-affiliated practice locations provide services that span the eyecare continuum in 18 states and 30 markets.

Kirkland & Ellis LLP served as EyeCare Partners’ legal advisor, Centerview Partners LLC served as its financial advisor and Berkeley Research Group LLC served as its operational advisor in the transaction.