Aspen Group, also known as ADMI Corp. and owner of Aspen Dental, has reportedly paused the sale of its WellNow urgent care business. This decision follows improved financial results, according to sources familiar with the matter. Previously, the company had been exploring the sale of WellNow, which operates over 150 urgent care clinics, with expectations of a sale price potentially reaching $300 million.
Instead of a sale, Aspen Group now aims to launch a comprehensive refinancing effort in the third quarter of this year. This refinancing is intended to address significant debt maturities, specifically more than $3 billion in term loans due in December 2027. The company is also continuing discussions with preferred equity investors to raise additional capital. An ad hoc group of lenders to Aspen Dental is working with Gibson Dunn in anticipation of these upcoming maturities.
Financial indicators show some volatility for Aspen Group's debt. Its $1.2 billion term loan B2 due December 23, 2027, saw indications drift down to 86.92/88.69 this week, compared to 91/93 in mid-May. Earlier in May, the loan had fallen significantly to 79/81.5 from 96/97 after the company did not provide progress updates on its refinancing efforts. Moody's Ratings affirmed Aspen Group's B3 Corporate Family Rating in April 2025 but revised the outlook to negative, citing weakened liquidity and an expected leverage in the 7x range.
S&P Global Ratings followed suit in August 2025, affirming a B- rating with a revised negative outlook. Their concerns included softening patient traffic and limited deleveraging capacity as the company approaches its substantial debt maturities. JPMorgan is also reportedly engaging with investors regarding parts of the capital structure, including a $500 million preferred equity tranche held by the bank.
While an earnings call in May indicated a letter of intent for the WellNow business, Aspen Group was noncommittal on executing the transaction. This recent development of pausing the sale reflects a shift in strategy, likely driven by the improved financial performance mentioned by sources.
