Blackstone, KKR Seize Affordable Care in Deal Slashing 70% of Debt
Updated
Updated · Bloomberg · May 14
Blackstone, KKR Seize Affordable Care in Deal Slashing 70% of Debt
2 articles · Updated · Bloomberg · May 14
$425 million in new debt and 100% of the reorganized equity will go to Affordable Care's direct lenders under a restructuring that hands control to Blackstone and KKR.
The agreement cuts about 70% of the dental company's debt load, underscoring the severity of its financial distress and the lenders' push to stabilize the business.
Lenders are set to receive pro-rata allocations of a $225 million first-lien second-out term loan and $200 million of payment-in-kind notes as part of the takeover.
After slashing 70% of its debt, can a dental chain actually be saved by its lenders?
Is the 'Affordable Care' rescue a warning sign for the $2 trillion private credit market?
When Wall Street takes over your dentist, does patient care improve or do prices just go up?