EyeCare Partners Negotiates $400 Million Debt Reduction
The operator plans to sell its optometry business to lower debt and extend payment timelines through a new term loan agreement.
Updated on Oct. 23, 2026 in Business Strategy
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EyeCare Partners is pursuing a debt reduction agreement that could slash its $2 billion debt burden by up to $400 million through asset sales and discounted repayments. The restructuring includes selling its optometry business to MyEyeDr, a transaction expected to close in the fourth quarter of 2026.
Why it matters
The move aims to stabilize the operator of 700 locations by shifting existing debt into a new first-lien 1.5-out term loan and extending payment maturities. This restructuring reflects a broader effort to manage high debt loads through asset divestitures and creditor negotiations.
EyeCare Partners carries a $2 billion debt burden and seeks to reduce that figure by $300 million to $400 million. The company operates 700 locations and currently maintains over $80 million in super-priority financing facilities from a 2024 restructuring.
The players
EyeCare Partners
An operator of more than 700 eye care locations across nearly 20 states.
MyEyeDr
An optometry services provider acquiring the optometry business of EyeCare Partners.
Partners Group
A global private equity firm that acquired EyeCare Partners in 2020.
Kirkland & Ellis
A law firm providing legal advisory services to EyeCare Partners.
Moelis
An investment bank representing the ad hoc creditor group in restructuring negotiations.
The details
EyeCare Partners is managing its obligations through a distressed debt exchange that invites first-lien second-out lenders to transition into a new, 1.5-out term loan. By selling its optometry business to MyEyeDr, the company generates liquidity to address existing debt, including a near $1.5 billion first-lien second-out term loan. The plan further includes provisions to extend payment-in-kind interest past early 2027 and defer maturities until after November 2028.
Timeline
2020: Partners Group acquired EyeCare Partners.
2024: EyeCare completed an earlier debt restructuring.
September 2026: EyeCare announced the sale to MyEyeDr.
Q4 2026: MyEyeDr transaction is expected to close.
Early 2027: Potential extension of payment-in-kind interest.
Market Landscape
This agreement follows the pattern set by the 2024 EyeCare Partners restructuring by utilizing new financing structures to manage liquidity. The move highlights the recurring nature of debt-management strategies for large-scale clinical operators facing interest rate pressures.
Operators managing high debt loads should track this shift as a signal of how private equity-backed firms prioritize divestitures to avoid full insolvency. Owners should evaluate their own credit terms and maturity schedules against the current trend of extending payments into 2027 and beyond.
The takeaway
Large operators should monitor these distressed debt exchanges as a template for managing multi-billion dollar debt burdens through asset sales. Management should review their own debt maturity schedules and interest payment obligations to identify refinancing risks well before the 2027 window.
What happens next
The sale of the optometry business to MyEyeDr is scheduled to close in the fourth quarter of 2026, with potential interest payment extensions occurring in early 2027.
Further reading
For more on managing corporate restructuring, visit Business Strategy.
Source note: This article includes information reported by Private Equity Wire.
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