Corus Orthodontists, a network for orthodontic practices across North America, has announced a significant enhancement to its financial structure. The company has expanded its secured syndicated credit facility, which is a substantial financial arrangement provided by a group of Canadian and U.S. lenders. The Canadian Imperial Bank of Commerce, often referred to as CIBC, played a central role in this process, acting as the sole lead arranger and also serving as the administrative agent for the facility. Other key financial institutions, including Scotiabank and ATB Financial, also contributed their expertise as co-documentation agents, ensuring that all necessary paperwork and agreements were handled correctly.
This expanded credit facility marks a substantial increase in Corus’s ability to access capital for its operations and growth initiatives. The amount available to Corus has been raised from an initial C$175 million to a more robust C$250 million. Furthermore, the agreement includes an uncommitted accordion feature, which provides the flexibility for the facility to be expanded even further, potentially reaching up to C$325 million if needed.
This additional capacity gives Corus considerable financial headroom for future strategic endeavors. In addition to the increased funding, the maturity date of the credit facility has also been extended. The facility was set to conclude in December 2025, but it has now been lengthened by three and a half years, pushing its expiration to December 2028. This extension provides Corus with greater long-term financial stability and predictability.
Corus Orthodontists is also notable for maintaining one of the lowest debt profiles among dental service organizations. This strong financial position indicates a prudent approach to managing its liabilities. Moreover, the company has taken proactive steps to manage its financial risks.
Corus has substantially hedged the portions of its interest rate exposure that are subject to fluctuations, ensuring that these costs are maintained at or below the current market rates throughout the entire term of the extended credit facility. This strategic hedging helps protect Corus from potential interest rate increases, contributing to its overall financial health and stability.
KEY QUOTES:
“This extension and expansion underscores our focus on organic and inorganic profitability and maintaining a strong balance sheet. We appreciate the ongoing support from our lending partners as we continue scaling our network of orthodontic partnerships across North America.”
Peter Bishop, CFO of Corus Orthodontists
“With this expansion and Corus’ existing cash reserves, the Company now has access to more than C$100 million in available capital for acquisitions. We’re excited to welcome new Doctor-Partners into the Corus community, those who bring clinical excellence, entrepreneurial energy, and a desire to help shape the future of the specialty. With a solid foundation in place, we’re well-positioned to continue expanding and strengthening our unique doctor-led model across North America.”
Dean Prevost, CEO of Corus Orthodontists
