Smile Doctors LLC is exploring a major refinancing of approximately $2 billion in debt to reduce borrowing costs, according to people familiar with the matter. The orthodontic chain backed by THL and Linden Capital is in talks with investors about restructuring its existing debt obligations. This move comes as the company seeks to optimize its capital structure amid challenging market conditions.

The potential refinancing would allow Smile Doctors to take advantage of lower interest rates and improve its financial flexibility. With over 400 locations across the United States, the company has been expanding rapidly through acquisitions and organic growth. The debt restructuring could provide additional capital for future expansion or other strategic initiatives.

For Smile Doctors, this refinancing represents a strategic opportunity to strengthen its balance sheet and position itself for continued growth in the competitive orthodontic market. The company's backers, THL and Linden Capital, are likely supportive of the move as it could enhance the value of their investment. The timing suggests Smile Doctors is capitalizing on favorable market conditions to improve its financial position.