LINCOLN EDUCATIONAL SERVICES CORPORATION (NASDAQ:LINC) Files An 8-K Entry into a Material Definitive Agreement
Item 1.01.
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Entry into a Material Definitive Agreement.
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Company) and its wholly-owned subsidiaries (collectively with the
Company, the Borrowers) entered into a secured credit agreement
(the Credit Agreement) with its existing lender, Sterling
National Bank (the Bank), to which the Borrowers have obtained a
short term loan in the principal amount of $8 million (the Loan),
the proceeds of which are to be used for working capital and
general corporate purposes.
upon two parcels of real property, and all improvements and
personal property located thereon, owned by a subsidiary of the
Company located in West Palm Beach, Florida at which schools
operated by the Company are currently located (the West Palm
Beach Property). The Loan is payable interest only until its
maturity, which will occur upon the earlier of October 1, 2017
and the date of the sale of the West Palm Beach Property. As
previously reported by the Company, the Company has entered into
a contract to sell the West Palm Beach Property to Tambone
Companies, LLC for a cash purchase price of $16,250,000. The
Company expects this sale of the West Palm Beach Property to be
completed in the second or third quarter of 2017.
of (x) the Banks prime rate plus 2.50% and (y) 6.00%.
warranties and affirmative and negative covenants, as well as
events of default customary for facilities of this type.
Bank an origination fee in the amount of $40,000 and other fees
and reimbursements that are customary for facilities of this
type.
purport to be complete and is qualified in its entirety by
reference to the full text of the Credit Agreement filed as
Exhibit 10.1 to this Current Report on Form 8-K, which is
incorporated herein by reference.
| Item 2.03. |
Creation of a Direct Financial Obligation or an
Obligation under an Off-Balance Sheet Arrangement of a Registrant. |
Form 8-K is incorporated herein by reference.
| Item 9.01. |
Financial Statements and Exhibits.
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(d)
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Exhibits:
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Exhibit
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Description
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10.1
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Credit Agreement dated as of April 28, 2017 among Lincoln
Educational Services Corporation and its subsidiaries and Sterling National Bank |
About LINCOLN EDUCATIONAL SERVICES CORPORATION (NASDAQ:LINC)
Lincoln Educational Services Corporation is a provider of post-secondary education. The Company operates in two segments: Transportation and Skilled Trades, and Transitional. The Transportation and Skilled Trades segment offers academic programs in the disciplines of transportation and skilled trades (automotive, diesel, heating, ventilation and air conditioning (HVAC), welding and manufacturing). The Transitional segment includes operations that are being phased out and consists of its campus that is being taught out. It offers programs in automotive technology, skilled trades, which include HVAC, welding and computerized numerical control and electronic systems technology; healthcare services, which include nursing, dental assistant and pharmacy technician; hospitality services, which include culinary, therapeutic massage, cosmetology and aesthetics, and business and information technology, which includes information technology and criminal justice programs. LINCOLN EDUCATIONAL SERVICES CORPORATION (NASDAQ:LINC) Recent Trading Information
LINCOLN EDUCATIONAL SERVICES CORPORATION (NASDAQ:LINC) closed its last trading session down -0.01 at 2.83 with 36,307 shares trading hands.
