PARSIPPANY, NJ - Lincoln Educational Services Corporation (NASDAQ:LINC), a provider of post-secondary education, has announced a new financial agreement with Fifth Third Bank, securing a $40 million revolving credit facility. The deal, effective until February 16, 2027, includes a $10 million sublimit for letters of credit and an option to increase the facility by an additional $20 million subject to certain conditions.
The credit facility is designed to bolster Lincoln's working capital, support general corporate activities, and fund strategic growth initiatives, such as program and campus expansions. Scott Shaw, President and CEO of Lincoln, remarked on the agreement's role in enhancing the company's financial agility, enabling it to continue delivering quality experiences to its students and potentially increasing shareholder returns.
Lincoln's current financial standing includes $80 million in cash and no outstanding debt, with the new credit facility potentially providing up to $60 million in additional liquidity. This positions the company strongly for future growth and benefits to students, graduates, instructors, and corporate partners.
The detailed terms of the credit agreement have been filed with the Securities and Exchange Commission (SEC) in a Form 8-K.
Lincoln Educational Services has been contributing to the skilled workforce since 1946 and currently operates 22 campuses across 13 states, offering programs in automotive technology, health sciences, skilled trades, business and information technology, and hospitality services.
This press release contains forward-looking statements, which are subject to various risks and uncertainties, including those related to the COVID-19 pandemic and regulatory compliance. These statements do not guarantee future performance and are based on current expectations about future events.
The information in this article is based on a press release statement from Lincoln Educational Services.
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