Lincoln Educational Services Incurs New Financial Obligation

TL;DR

**Lincoln Educational Services just took on new debt or a major financial commitment, watch for details!**

AI Summary

On February 16, 2024, Lincoln Educational Services Corporation entered into a material definitive agreement and incurred a direct financial obligation. The 8-K filing, submitted on February 23, 2024, details these events, which include the creation of a direct financial obligation or an obligation under an off-balance sheet arrangement. The company, based in Parsippany, NJ, operates in educational services.

Why It Matters

This filing indicates Lincoln Educational Services Corp. has taken on new financial commitments, which could impact its future liquidity and operational flexibility.

Risk Assessment

Risk Level: medium — The filing indicates a new financial obligation without specifying the amount or terms, which introduces uncertainty regarding its potential impact on the company's financial health.

Key Players & Entities

• LINCOLN EDUCATIONAL SERVICES CORP (company) — Registrant
• February 16, 2024 (date) — Date of earliest event reported
• February 23, 2024 (date) — Filed as of date
• New Jersey (company) — State of Incorporation
• Parsippany, NJ (company) — Business address city and state

FAQ

Key Financial Figures

• $40 million — ty in the aggregate principal amount of $40 million including a $10 million letter of credi
• $10 million — cipal amount of $40 million including a $10 million letter of credit sublimit and a $20 mil
• $20 million — million letter of credit sublimit and a $20 million accordion feature (the "Facility"), the

Filing Documents

• ef20022241_8k.htm (8-K) — 34KB
• ef20022241_ex10-1.htm (EX-10.1) — 490KB
• ef20022241_ex99-1.htm (EX-99.1) — 9KB
• 0001140361-24-009235.txt ( ) — 762KB
• linc-20240216.xsd (EX-101.SCH) — 4KB
• linc-20240216_lab.xml (EX-101.LAB) — 21KB
• linc-20240216_pre.xml (EX-101.PRE) — 16KB
• ef20022241_8k_htm.xml (XML) — 4KB

01

Item 1.01. Entry into a Material Definitive Agreement. On February 16, 2024, Lincoln Educational Services Corporation (the "Company") entered into a secured credit agreement (the "Credit Agreement") with Fifth Third Bank, National Association (the "Bank"), pursuant to which the Company, as borrower, has obtained a revolving credit facility in the aggregate principal amount of $40 million including a $10 million letter of credit sublimit and a $20 million accordion feature (the "Facility"), the proceeds of which are to be used for working capital, general corporate and certain other permitted purposes. The Facility is guaranteed by the Company's wholly-owned subsidiaries and is secured by a first priority lien in favor of the Bank on substantially all of the personal property owned by the Company and its subsidiaries. The term of the Facility is 36 months, maturing on February 16, 2027. Each advance under the Facility will bear interest on the outstanding principal amount thereof from the date when made at an interest rate determined at the election of the Company at either the Tranche Rate (which is the forward-looking Secured Overnight Financing Rate (SOFR) for one or three months), or the Base Rate (which is a variable per annum rate, as of any date of determination, equal to the Bank's Prime Rate), plus an Applicable Margin. The Applicable Margin is determined pursuant to a Pricing Grid, which for loans subject to the Tranche Rate varies from 1.75% to 2.50% and for loans subject to the Base Rate varies from 0.75% to 1.50%. The Applicable Margin may change quarterly based on the Total Leverage Ratio at such time. The Total Leverage Ratio is determined with respect to the Company and its subsidiaries on a consolidated basis for an applicable quarterly period by dividing the aggregate principal amount of various forms of borrowed indebtedness as of the last day of a determination period by EBITDA (earnings before interest expense, taxes, depreciation and amortiz

03

Item 2.03. Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant. The disclosure contained in Item 1.01 of this Current Report on Form 8-K is incorporated herein by reference.

01

Item 8.01. Other Events. On February 23, 2024, the Company issued a press release reporting its entry into the Credit Agreement. A copy of the press release is filed as Exhibit 99.1 hereto and incorporated herein by reference. The information contained under this Item 8.01 in this Current Report on Form 8-K, including Exhibit 99.1, is being furnished and shall not be deemed to be "filed" for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that Section.

Financial Statements and Exhibits

Financial Statements and Exhibits. (d) Exhibits: Exhibit Description 10.1 Credit Agreement dated as of February 16, 2024 among Lincoln Educational Services Corporation and its subsidiaries and Fifth Third Bank, National Association 99.1 Press Release of Lincoln Educational Services Corporation dated February 23, 2024 104 Cover Page Interactive Data File (embedded within the inline XBRL document)

SIGNATURES

SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. Dated: February 23, 2024 LINCOLN EDUCATIONAL SERVICES CORPORATION By: /s/ Brian K. Meyers Name: Brian K. Meyers Title: Executive Vice President, Chief Financial Officer and Treasurer

View Full Filing

View this 8-K filing on SEC EDGAR