EyeCare Partners Negotiates Debt Reduction Agreement
The company plans to cut debt by up to $400 million through asset sales and a new term loan agreement.
Updated on Oct. 23, 2026 in Business Strategy
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EyeCare Partners is pursuing a significant restructuring of its $2 billion debt burden through asset sales and a distressed debt exchange. This move follows the sale of its optometry business to MyEyeDr.
Why it matters
The restructuring aims to stabilize the company's finances by reducing total debt by $300 million to $400 million. It includes provisions to push back interest payments and maturity dates to help the firm manage its operations across over 700 locations.
The company is managing a $2 billion debt burden alongside $80 million in super-priority financing facilities established during a 2024 restructuring. Officials target a maximum debt reduction of $400 million through asset divestitures and discounted repayments.
The players
EyeCare Partners
This organization operates a large network of eye care locations across the United States.
MyEyeDr
This company is an optometry provider that has agreed to purchase the optometry business of EyeCare Partners.
Partners Group
This global investment firm acquired EyeCare Partners in 2020.
The details
EyeCare Partners, which operates in nearly 20 states, is transitioning first-lien second-out lenders into a new first-lien 1.5-out term loan. Kirkland & Ellis and Centerview Partners are advising the firm, while an ad hoc creditor group works with Gibson, Dunn & Crutcher and Moelis.
Timeline
Partners Group acquired EyeCare Partners in 2020.
EyeCare completed an earlier debt restructuring in 2024.
The sale to MyEyeDr was announced in September 2026.
The MyEyeDr transaction is expected to close in Q4 2026.
Payment-in-kind interest extensions are possible starting early 2027.
Market Landscape
This move mirrors the strategy seen in the 2024 EyeCare Partners restructuring, which serves as the precedent for the firm's current debt management efforts. The company is actively adjusting its capital structure to remain competitive against rivals in the consolidated optometry market.
The company's focus on debt reduction and the sale of its optometry business to MyEyeDr could signal shifts in service availability or management at its 700 locations. Patients and clients should monitor local clinic notices for potential changes to billing or service providers.
The takeaway
Companies facing high leverage often utilize distressed debt exchanges to avoid insolvency. Creditors and stakeholders should watch for the closure of the MyEyeDr acquisition to determine the long-term viability of the remaining operations.
What happens next
The transaction involving the sale of the optometry business to MyEyeDr is expected to reach its conclusion in the fourth quarter of 2026.
Further reading
Learn more about corporate financial shifts in the Business Strategy section.
Source note: This article includes information reported by Private Equity Wire.
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