Morrisville, N.C.-based Affordable Care has completed a recapitalization transaction to reduce debt and improve its financial foundation for long-term growth.
The recapitalization reduced the DSO’s debt by $1 billion, or about 65%, provided $75 million in new capital and extended debt maturities to 2031, according to an Aug. 13 news release from Affordable Care.
As part of the transaction, Affordable Care transitioned ownership of the company to its existing lenders. The restructuring deal was announced in May, with private equity firms Blackstone and KKR leading negotiations to restructure the DSO’s credit structure.
Affordable Care’s existing management team will continue to lead the business. The DSO’s day-to-day operations, patient care and support for affiliated practices will not change.
Affordable Care is one of the largest DSOs in the U.S., supporting more than 380 affiliated practices across 39 states.
“With a stronger balance sheet, we are well positioned to continue investing in our supported practices and advancing our mission to expand access to high-quality, patient-centric dental care,” Pete Bridgman, CEO of Affordable Care, said in the release. “I look forward to the next chapter of Affordable Care, working alongside our talented doctors and teams, with the same commitment to clinical excellence that has defined our organization for more than 50 years.”
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