Morrisville, N.C.-based Affordable Care will reportedly be taken over by direct lenders as part of a restructuring agreement to reduce the DSO’s debt, Bloomberg reported May 14.
Five notes:
1. Blackstone and KKR are leading negotiations to restructure the DSO’s credit structure with other participants, including Antares Capital and New Mountain Capital, according to sources familiar with the matter.
2. The proposed agreement would involve creditors exchanging their positions in the DSO’s $1.4 billion credit structure, with larger lenders taking full ownership and lower-ranking lenders being removed entirely.
3. Creditors are also being offered involvement in a new $75 million new-money facility.
4. The deal, which is expected to reduce the DSO’s debt burden by roughly 70%, is expected to be finalized by the end of June.
5. Affordable Care supports approximately 425 practices in 40 states.
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