Parsippany, NJ, Feb. 23, 2024 (GLOBE NEWSWIRE) — Lincoln Educational Services Corporation (Nasdaq: LINC) today announced that it has entered into a $40 million revolving credit facility with Fifth Third Bank. The credit agreement, which has a term of 36 months and matures on February 16, 2027, is for an aggregate principal amount of $40 million, including a $10 million sublimit for letters of credit and an additional accordion option to upsize the credit facility by an additional $20 million upon satisfaction of certain terms and conditions. The proceeds may be used for working capital, general corporate purposes and to support the Company’s strategic growth initiatives, including program and campus expansions.
“This new revolving credit facility, complemented with an already robust balance sheet, enhances additional financial resources to execute our near- and longer-term growth initiatives,” commented Scott Shaw, Lincoln’s President & CEO. “We remain committed to our students and the proceeds from this credit facility will allow Lincoln greater financial flexibility to continue delivering positive student experiences. With $80 million in cash, no debt and a new credit facility providing up to $60 million of additional liquidity with the potential accordion option, Lincoln’s financial position is very strong allowing us to create long lasting benefits to our students, our graduates, our instructors, our corporate partners, and increasing returns to our shareholders”.
Additional information regarding the terms of the new credit facility are contained in a Form 8-K filed with the SEC.
ABOUT LINCOLN EDUCATIONAL SERVICES CORPORATION
Lincoln Educational Services Corporation is a leading provider of diversified career-oriented post-secondary education helping to provide solutions to America’s skills gap. Lincoln offers career-oriented programs to recent high school graduates and working adults in five principal areas of study: automotive technology, health sciences, skilled trades, business and information technology, and hospitality services. Lincoln has provided the workforce with skilled technicians since its inception in 1946 and currently operates 22 campuses in 13 states under 4 brands: Lincoln College of Technology, Lincoln Technical Institute, Lincoln Culinary Institute, and Euphoria Institute of Beauty Arts and Sciences. For more information, please go to www.lincolntech.edu.
