Research Update: ADMI Corp. Outlook Revised To Stable From Negative On Maturity Extension And Solid Liquidity; 'B-' Rating Affirmed

ADMI Corp. (doing business as The Aspen Group [TAG]) has announced its plans to extend its existing term loan B-1 due April 2025 with a $780 million term loan B-5 due December 2027. The company also announced that it will be extending the maturity of its revolving credit facility (RCF) by five years to December 2028. In addition to the extension transaction, TAG's financial sponsors (Leonard Green&Partners L.P., Ares Management LLC, and American Securities LLC) have agreed to inject $450 million of equity in the form of preferred shares. The proposed transaction eliminates near-term refinancing risk, and the sponsor equity helps bolster liquidity, which we believe is sufficient to manage through the uncertainty of an expected rebound in

...- ADMI Corp. (doing business as The Aspen Group [TAG]) has announced its plans to extend its existing term loan B-1 due April 2025 with a $780 million term loan B-5 due December 2027. The company also announced that it will be extending the maturity of its revolving credit facility (RCF) by five years to December 2028. - In addition to the extension transaction, TAG's financial sponsors (Leonard Green & Partners L.P., Ares Management LLC, and American Securities LLC) have agreed to inject $450 million of equity in the form of preferred shares. - The proposed transaction eliminates near-term refinancing risk, and the sponsor equity helps bolster liquidity, which we believe is sufficient to manage through the uncertainty of an expected rebound in all three major segments. - Therefore, S&P Global Ratings revised the outlook on TAG to stable from negative and affirmed its 'B-' issuer credit rating on the company. - At the same time, we assigned our 'B-' issue-level rating and '3' recovery rating...

Research Update