The Joint Corp closed a senior secured credit facility with JPMorgan Chase Bank for $7.5 million, including a $5.5 million development line of credit (LOC) and a $2.0 million revolving LOC, which has an uncommitted accordion feature for an additional $2.5 million.
The company repaid its previous LOC prior to December 31, 2019.
“We are excited to complete a milestone transaction that increases our balance sheet flexibility while reducing costs, reflecting the increasing strength of our financial position,” said Jake Singleton, chief financial officer of The Joint Corp. “In 2019, we funded our 13 company-owned or managed clinic growth using cash from operations. This non-dilutive financing vehicle will increase our ability to expand development, and we are pleased JPMorgan has chosen to support The Joint and our mission.”
On January 9, 2020, the company provided guidance that it expects to open 80 to 90 franchised clinics, up from 71 in 2019 and 47 in 2018, and increase company-owned or managed portfolio clinics by 16 to 20 through new greenfield clinics and franchised clinic buybacks, up from 13 in 2019 and one in 2018.
The Joint Corp. is making quality care convenient and affordable, while eliminating the need for insurance, for millions of patients seeking pain relief and ongoing wellness.
