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On November 29, 2017, Lincoln Educational Services Corporation (the “Company”) and its wholly-owned subsidiaries (collectively with the Company, the “Borrowers”) entered into a first amendment (the “First Amendment”) of the Credit Agreement dated as of March 31, 2017 (the “Credit Agreement”) among the Borrowers and its lender, Sterling National Bank (the “Bank”). As previously reported, to the Credit Agreement, the Borrowers obtained a revolving credit facility in the aggregate principal amount of up to $55 million, consisting of (i) a $30 million loan facility (“Facility 1”), comprised of a $25 million revolving loan designated as “Tranche A” and a $5 million non-revolving loan designated as “Tranche B” and (ii) a $25 million revolving loan facility which includes a sublimit amount for letters of credit of $10 million (“Facility 2”). Prior to the effectiveness of the First Amendment, the Borrowers repaid the $5 million non-revolving loan provided under Tranche B of Facility 1, resulting in a permanent reduction in the availability under Facility 1 to $25 million.

The First Amendment provides the Borrowers with an additional $15 million revolving credit facility (“Facility 3”), resulting in an increase in the aggregate availability under the Credit Agreement to $65 million.

to the First Amendment, all draws under Facility 3 must be secured by cash collateral in an amount equal to 50% of the aggregate revolving loans outstanding through draws from Facility 1 or other available cash of the Company. Revolving loans under Facility 3 will bear interest at a rate per annum equal to the greater of (i) the Bank’s prime rate and (ii) 3.50%.

In connection with the effectiveness of the First Amendment, the Borrowers paid the Bank a Facility 3 origination fee in the amount of $75,000.

The foregoing description of the First Amendment does not purport to be complete and is qualified in its entirety by reference to the full text of the First Amendment filed as Exhibit 10.1 to this Current Report on Form 8-K, which is incorporated herein by reference.

The disclosure contained in Item 1.01 of this Current Report on Form 8-K is incorporated herein by reference.

LINCOLN EDUCATIONAL SERVICES CORP Exhibit
EX-10.1 2 ex10_1.htm EXHIBIT 10.1 Exhibit 10.1   FIRST AMENDMENT TO CREDIT AGREEMENT   THIS FIRST AMENDMENT TO CREDIT AGREEMENT (this “Amendment”) is made as of this 29th day of November,…
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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.