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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Beach, Inc. (NEIT), a wholly-owned subsidiary of Lincoln
Educational Services Corporation (the Company), entered into a
purchase and sale agreement (the West Palm Sale Agreement) with
Tambone Companies, LLC (Tambone), to which NEIT has agreed to
sell to Tambone the real property owned by NEIT located at 2400
and 2410 Metrocentre Boulevard East, West Palm Beach, Florida,
including the improvements and other personal property located
thereon for a cash purchase price of $16,250,000. The West Palm
Sale Agreement contains customary representations, warranties,
covenants and conditions to closing for agreements of this type.
The Company expects to close on the sale in the second or third
quarter of 2017.
credit agreement with its lenders, the Company is obligated to
repay at closing, from the net cash proceeds of the sale, $10
million of the principal amount of its term loan plus a
prepayment premium in the amount of $500,000 if closing occurs in
the second quarter or $300,000 if closing occurs in the third
quarter, plus accrued interest on the principal amount repaid.
Notwithstanding the contractual obligation, based on discussions
with its lenders, the Company believes that its lenders will
agree to reduce the principal amount required to be prepaid from
the proceeds of the sale; however, there can be no assurances
that any such agreement of the Companys lenders will be obtained.
Agreement is qualified in its entirety by reference to the West
Palm Sale Agreement, a copy of which is filed as Exhibit 2.1 and
incorporated herein by reference.
| Item 9.01. |
Financial Statements and Exhibits.
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| (d) |
Exhibits:
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| Exhibit |
Description
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| 2.1 |
Purchase and Sale Agreement, dated March 14, 2017,
between New England Institute of Technology at Palm Beach, Inc. and Tambone Companies, LLC |
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 up +0.08 at 2.44 with 37,999 shares trading hands.
