Lincoln Educational Services Announces New $40 Million Revolving Credit Facility Increasing Capital Resource Flexibility, by @GlobeNewswire
Summary
Parsippany, NJ, Feb. 23, 2024 (GLOBE NEWSWIRE) -- Lincoln Educational Services Corporation (Nasdaq: LINC) today announced that it has entered into a $40 million revolving credit facility with Fifth Third Bank. The proceeds may be used for working capital, general corporate purposes and to support the Companys strategic growth initiatives, including program and campus expansions.This new revolving credit facility, complemented with an already robust balance sheet, enhances additional financial resources to execute our near- and longer-term growth initiatives, commented Scott Shaw, Lincolns President & CEO. With $80 million in cash, no debt and a new credit facility providing up to $60 million of additional liquidity with the potential accordion option, Lincolns financial position is very strong allowing us to create long lasting benefits to our students, our graduates, our instructors, our corporate partners, and increasing returns to our shareholders.Additional information regarding the terms of the new credit facility are contained in a Form 8-K filed with the SEC.Lincoln Educational Services Corporation is a leading provider of diversified career-oriented post-secondary education helping to provide solutions to Americas skills gap. Generally, these statements relate to business plans or strategies and projections involving anticipated revenues, earnings, or other aspects of the Companys operating results. The Company cautions you that these statements concern current expectations about the Companys future performance or events and are subject to a number of uncertainties, risks, and other influences, many of which are beyond the Companys control, that may influence the accuracy of the statements and the projects upon which the statements are based including, without limitation, impacts related to the COVID-19 pandemic or other epidemics or pandemics; our failure to comply with the extensive regulatory framework applicable to our industry or our failure to obtain timely regulatory approvals in connection with acquisitions or a change of control of our Company; our success in updating and expanding the content of existing programs and developing new programs for our students in a cost-effective manner or on a timely basis; risks associated with changes in applicable federal laws and regulations; uncertainties regarding our ability to comply with federal laws and regulations, such as the 90/10 rule and prescribed cohort default rates; risks associated with the opening of new campuses; risks associated with integration of acquired schools; industry competition; our ability to execute our growth strategies; conditions and trends in our industry; general economic conditions; and other factors discussed in the Risk Factors section of our Annual Reports and Quarterly Reports filed with the Securities and Exchange Commission.