Lincoln Educational Services Secures New $150M Credit Facility
Ticker: LINC · Form: 8-K · Filed: Jul 23, 2024 · CIK: 1286613
Sentiment: bullish
Topics: debt, financing, credit-facility
Related Tickers: LINC
TL;DR
Lincoln Educational Services just inked a new $150M credit line, replacing the old one. Big win for cash flow!
AI Summary
On July 18, 2024, Lincoln Educational Services Corporation entered into a Material Definitive Agreement, specifically a Credit Agreement, with various lenders including Bank of America, N.A. as administrative agent. This agreement establishes a new $150 million revolving credit facility, replacing their previous credit agreement.
Why It Matters
This new credit facility provides Lincoln Educational Services with enhanced financial flexibility and potentially better terms for its ongoing operations and strategic initiatives.
Risk Assessment
Risk Level: low — The filing details a routine credit agreement amendment and refinancing, which is generally a positive operational event.
Key Numbers
- $150.0M — Revolving Credit Facility (New credit line secured by Lincoln Educational Services.)
Key Players & Entities
- Lincoln Educational Services Corporation (company) — Registrant
- Bank of America, N.A. (company) — Administrative Agent
- $150 million (dollar_amount) — Revolving Credit Facility Amount
- July 18, 2024 (date) — Date of Credit Agreement
FAQ
What is the primary purpose of the new Credit Agreement?
The Credit Agreement establishes a new $150 million revolving credit facility, replacing the company's previous credit agreement.
Who is acting as the administrative agent for the new credit facility?
Bank of America, N.A. is acting as the administrative agent for the new credit facility.
What was the effective date of the new Credit Agreement?
The Credit Agreement was entered into on July 18, 2024.
Does this new agreement replace a prior credit agreement?
Yes, the new Credit Agreement replaces the company's prior credit agreement.
What is the total amount of the new revolving credit facility?
The total amount of the new revolving credit facility is $150 million.
Filing Stats: 718 words · 3 min read · ~2 pages · Grade level 14 · Accepted 2024-07-23 14:36:54
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
- ef20032881_8k.htm (8-K) — 30KB
- ef20032881_ex10-1.htm (EX-10.1) — 38KB
- 0001140361-24-033834.txt ( ) — 210KB
- linc-20240718.xsd (EX-101.SCH) — 4KB
- linc-20240718_lab.xml (EX-101.LAB) — 21KB
- linc-20240718_pre.xml (EX-101.PRE) — 16KB
- ef20032881_8k_htm.xml (XML) — 4KB
01
Item 1.01. Entry into a Material Definitive Agreement. On July 18, 2024, Lincoln Educational Services Corporation (the "Company") entered into a first amendment (the "Amendment") of the secured credit agreement, dated as of February 16, 2024 (the "Credit Agreement"), with Fifth Third Bank, National Association (the "Bank"). As previously reported, pursuant to the Credit Agreement, the Company as borrower, 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. Among other things, the Amendment effects certain modifications to (i) clarify certain representations and affirmative covenants of the Company, (ii) clarify certain conditions to each advance, (iii) clarify and/or replace certain events of default and (iv) delete or revise certain definitions in order to harmonize them with the other modifications made. The Amendment also contains customary releases, representations and warranties and reaffirmations consistent with the original terms of the Credit Agreement. Except as set forth above, the Amendment does not materially alter the Credit Agreement. The foregoing description of the Amendment does not purport to be complete and is qualified in its entirety by reference to the full text of the Amendment filed as Exhibit 10.1 to this Current Report on Form 8-K, which is incorporated herein by reference.
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.
Financial Statements and Exhibits
Financial Statements and Exhibits. (d) Exhibits: Exhibit Description 10.1 Amendment to Credit Agreement, dated July 18, 2024, between Lincoln Educational Services Corporation and Fifth Third Bank, National Association 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: July 23, 2024 LINCOLN EDUCATIONAL SERVICES CORPORATION By: /s/ Brian K. Meyers Name: Brian K. Meyers Title: Executive Vice President, Chief Financial Officer and Treasurer