Article
Blue Owl Funds Dividend Recap for Webster Equity-Backed Bristol Hospice
Private lender Blue Owl has provided $500 million to $750 million in debt financing to fund a divided recap for hospice and palliative care services provider Bristol Hospice, according to sources familiar with the situation.
A portion of the proceeds were used to fund a $200 million dividend payout to the company’s shareholders, one of the sources said, adding that the transaction was completed in October.
The facility priced at about SOFR+450 bps, said the same source, which is a significant compression from average spreads last quarter. According to Octus’ Private Credit Dashboard, senior direct lending facilities to back refinancings, repricings and restructurings priced at SOFR+510 bps in the third quarter of the year.
Blue Owl is an existing lender to Bristol via its business development companies. The lender holds a portion of a first lien loan due 2032 to the company, which is priced at SOFR+500 bps, according to Octus’ BDC Database. Additional lenders include Crescent Capital Private Credit Income Corp. and Stepstone Private Credit Fund, among others, the database shows.
Salt Lake City-based Bristol, founded in 2006, operates 78 locations across 25 states, according to its website.
Webster, a Waltham, Mass.-based private equity firm, acquired Bristol in 2017 in a transaction reportedly valued above $70 million. Webster explored a sale of the portfolio company in 2021, according to a report, although a deal never materialized
Bristol has completed several acquisitions under Webster’s ownership, including Optimal Health Services and Suncrest Hospice in 2018; Health Essentials LLC, dba Remita Health, in 2020; and Mid-Delta Hospice in 2024.
A list of private refinancing and repricing deals in the broader healthcare sector is HERE.
Webster declined to comment. Blue Owl and Bristol Hospice did not respond to requests for comment.
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