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Lincoln Educational Services (LINC) Enters New $40M Revolving Credit Facility

February 23, 2024 1:37 PM EST

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.



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