LINC · Lincoln Educational Services Corporation

Lincoln Educational Services Corporation has significantly enhanced its financial flexibility by amending and restating its credit agreement, more than doubling its revolving credit facility from $60 million to $125 million. This $65 million increase in available liquidity is strategically aimed at supporting the company's growth initiatives and meeting long-term operating objectives, as highlighted in the accompanying press release. The facility's structure includes a $10 million letter of credit sublimit and a $25 million accordion feature, providing additional operational flexibility. The five-year term extending to April 2031 offers a stable financing platform. The interest rate mechanism, tied to either SOFR or Prime Rate with variable margins based on the company's leverage ratio, aligns the cost of capital with financial performance. The comprehensive security package, including guarantees from subsidiaries and a first-priority lien on substantially all personal property, underscores the lenders' commitment while providing the company with necessary capital for strategic investments. This transaction reflects management's confidence in executing its growth strategy, as referenced by the previously announced 19-20% student start growth for the first quarter of 2026.