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Lincoln Educational buys Melrose Park campus with new mortgage

Lincoln Educational Services Corporation, through its wholly owned subsidiary Lincoln Technical Institute, completed the purchase of its Melrose Park, Illinois campus property at 8315-8317 W. North Avenue for $18,800,000.00.

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(High)
Filing Sentiment
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Form Type
8-K

Rhea-AI Filing Summary

Lincoln Educational Services Corporation, through its wholly owned subsidiary Lincoln Technical Institute, completed the purchase of its Melrose Park, Illinois campus property at 8315-8317 W. North Avenue for $18,800,000.00. The site had previously been operated under a lease from Melrose Omni, LLC.

To fund a portion of the purchase price, Lincoln Technical Institute obtained a $15,040,000.00 mortgage loan from Provident Bank, with the remaining amount paid from cash on hand. The loan bears a fixed interest rate of 5.99% per year for the first five years, then resets to a floating rate equal to 1.75% above the weekly average yield on five-year U.S. Treasury securities, with a floor of 5.00% per year, and matures on July 1, 2036. Beginning August 1, 2026, the subsidiary will make monthly principal and interest payments of approximately $97,628. The debt is secured by a mortgage and related security interests in the property, and is supported by a continuing guaranty from the company and its subsidiaries.

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Insights

Lincoln buys its Melrose Park campus, adding long-term mortgage debt.

Lincoln Educational Services has moved from leasing to owning its Melrose Park, IL campus, paying $18,800,000.00 for the property. Ownership can provide long-term control over a key facility, but also concentrates capital in real estate and introduces property-specific risk.

The company financed $15,040,000.00 of the price with a mortgage from Provident Bank, at an initial fixed rate of 5.99% for five years, then a floating rate at 1.75 percentage points above the five-year U.S. Treasury yield, with a floor of 5.00%. This structure ties future borrowing costs to interest-rate conditions after the fixed period.

The loan matures on July 1, 2036, with monthly payments of about $97,628 starting August 1, 2026, secured by the campus and backed by a guaranty from the company and its subsidiaries. Financial covenants and events of default are described as customary for this type of loan, which means continued compliance will be important over the decade-long term.

Item 1.01 Entry into a Material Definitive Agreement Business
The company signed a significant contract such as a merger agreement, credit facility, or major partnership.
Item 2.01 Completion of Acquisition or Disposition of Assets Financial
The company completed a significant acquisition or sale of business assets.
Item 2.03 Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement Financial
The company incurred a new significant debt or off-balance-sheet obligation.
Item 9.01 Financial Statements and Exhibits Exhibits
Financial statements, pro forma financial information, or exhibit attachments filed with this report.
Property purchase price $18,800,000.00 Price paid for Melrose Park, IL campus property at 8315-8317 W. North Avenue
Mortgage loan amount $15,040,000.00 Principal amount of mortgage from Provident Bank used to fund part of purchase price
Initial fixed interest rate 5.99% per year Loan interest rate for the first five years of the term
Interest rate floor 5.00% per annum Minimum interest rate after loan switches to floating rate
Monthly installment approximately $97,628 Monthly principal and interest payments beginning August 1, 2026
Loan maturity date July 1, 2036 Scheduled maturity date of the Provident Bank mortgage loan
Rate spread over Treasuries 1.75 percentage points Spread above weekly average yield on five-year U.S. Treasury securities after fixed-rate period
Mortgage, Assignment of Rents and Leases, Security Agreement and Fixture Filing financial
"Mortgage, Assignment of Rents and Leases, Security Agreement and Fixture Filing, dated as of July 7, 2026"
Continuing Agreement of Guaranty and Suretyship financial
"Continuing Agreement of Guaranty and Suretyship executed by the Company and its subsidiaries"
basis points financial
"thereafter, will change to a rate equal to one hundred seventy-five basis points (1.75%)"
Basis points are a way to measure small changes in interest rates or percentages, where one basis point equals 0.01%. For example, if a loan's interest rate increases by 50 basis points, it's gone up by 0.50%. They help people understand tiny differences in rates that can add up over time, making financial comparisons clearer.
weekly average yield on United States Treasury Securities adjusted to a constant maturity of five (5) years financial
"in excess of the weekly average yield on United States Treasury Securities adjusted to a constant maturity of five (5) years"

FAQ

What property did Lincoln Educational Services (LINC) acquire on July 7, 2026?
Lincoln Educational Services, through Lincoln Technical Institute, acquired the Melrose Park, Illinois campus property at 8315-8317 W. North Avenue, including the building, improvements, and related personal property, which it had previously operated under a lease.

How much did Lincoln Educational Services (LINC) pay for the Melrose Park property?
The company paid a purchase price of $18,800,000.00 for the Melrose Park property. This amount was subject to adjustments under a Purchase and Sale Agreement dated May 12, 2026.

How did Lincoln Educational Services (LINC) finance the Melrose Park campus acquisition?
Lincoln financed the acquisition with a $15,040,000.00 mortgage loan from Provident Bank and the remainder of the $18,800,000.00 purchase price from cash on hand, combining debt financing and existing liquidity.

What are the key terms of Lincoln Educational Services’ (LINC) mortgage loan from Provident Bank?
The $15,040,000.00 loan bears a fixed interest rate of 5.99% per year for five years, then converts to a floating rate 1.75 percentage points above the five-year U.S. Treasury yield, with a minimum rate of 5.00% per year, and matures on July 1, 2036.

What are the repayment obligations on Lincoln Educational Services’ (LINC) new loan?
Beginning August 1, 2026, Lincoln Technical Institute must make monthly installments of approximately $97,628, covering both principal and interest, until the loan’s maturity on July 1, 2036.

How is the Provident Bank loan to Lincoln Educational Services (LINC) secured?
The loan is secured by a mortgage and security interest in the Melrose Park property, along with an Assignment of Rents and Leases, and is further backed by a Continuing Agreement of Guaranty and Suretyship from Lincoln Educational Services and its wholly owned subsidiaries.

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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
 
 
FORM 8-K
 
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
 
Date of Report (Date of Earliest Event Reported): July 7, 2026
 
LINCOLN EDUCATIONAL SERVICES CORPORATION
(Exact Name of Registrant as Specified in Charter)
 
     
New Jersey
 
000-51371
 
57-1150621
(State or Other Jurisdiction of Incorporation)   (Commission File Number)   (IRS Employer Identification No.)
 
14 Sylvan Way, Suite A, Parsippany, NJ 07054
(Address of Principal Executive Offices)  (Zip Code)
 
Registrant’s telephone number, including area code: (973) 736-9340
 
Not applicable
(Former name or former address, if changed since last report)
 
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
 
☐
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
 
☐
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
 
☐
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
 
☐
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
 
Securities registered pursuant to Section 12(b) of the Act:
 
Title of each class Trading
Symbol(s) 		Name of each exchange on which
registered
Common Stock No Par Value
LINC The NASDAQ Stock Market LLC
 
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
 
Emerging growth company ☐
 
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.
 
1
Item 1.01.
Entry into a Material Definitive Agreement. 
 
The information set forth in Item 2.03 hereof is hereby incorporated by reference into this Item 1.01 as if expressly set forth herein.
 
Item 2.01.
Completion of Acquisition or Disposition of Assets.
 
On July 7, 2026, Lincoln Technical Institute, Inc. (“Lincoln Technical Institute”), a wholly-owned subsidiary of Lincoln Educational Services Corporation (the “Company”), completed the previously reported proposed acquisition of the facility and real property located at 8315-8317 W. North Avenue, Melrose Park, IL 60160 (including the building and improvements and other personal property located thereon) (the “Property”) from which the Company has previously operated its Melrose Park campus under lease from the seller, Melrose Omni, LLC. The purchase price for the Property was $18,800,000.00 as adjusted, in accordance with the terms of the Purchase and Sale Agreement, dated May 12, 2026, previously disclosed in the Current Report on Form 8-K filed by the Company with the Securities and Exchange Commission on May 12, 2026. In connection with the acquisition, the Company obtained mortgage financing from Provident Bank in the amount of $15,040,000.00 to fund a portion of the purchase price with the remainder of the purchase price being funded by cash on hand.
 
Item 2.03.
Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant.
 
In order to fund a portion of the purchase price for the Property acquired, as described in Item 2.01 above, Lincoln Technical Institute entered into the following principal loan documents on July 7, 2026 with or for the benefit of Provident Bank: (i) Loan Agreement; (ii) Promissory Note, (iii) Mortgage, Assignment of Rents and Leases, Security Agreement and Fixture Filing, and (iv) Continuing Agreement of Guaranty and Suretyship. Pursuant to the Promissory Note, the loan for $15,040,000.00 accrues interest at an initial fixed rate of 5.99% per year for the first five years of the term and, thereafter, will change to a rate equal to one hundred seventy-five basis points (1.75%) in excess of the weekly average yield on United States Treasury Securities adjusted to a constant maturity of five (5) years, as made available by the Federal Reserve Board in effect three (3) days before the date of change, rounded up to the nearest hundredth provided that the interest rate payable will at no time be less than five percent per annum (5.00%). The loan matures on July 1, 2036. Beginning on August 1, 2026, Lincoln Technical Institute will pay monthly installments of approximately $97,628 consisting of principal and interest. The payment and performance of the Loan is secured by a security interest in the Property acquired pursuant to the Mortgage, Assignment of Rents and Leases, Security Agreement and Fixture Filing as well as the Continuing Agreement of Guaranty and Suretyship executed by the Company and its subsidiaries in favor of Provident Bank. The Loan Agreement contains various representations and warranties and financial and other covenants as well as events of default customary for loans of this type.
 
The foregoing description of the Loan Agreement and associated loan documents do not purport to be complete and are qualified in their entireties by reference to the full text of the agreements filed with this Current Report on Form 8-K as Exhibits 10.1 through 10.4 which are incorporated herein by reference.
 
2
Item 9.01.
Financial Statements and Exhibits.
 
(d)
Exhibits:
 
Exhibit Description
   
10.1 Loan Agreement, dated as of July 7, 2026, between Lincoln Technical Institute, Inc. and Provident Bank.
   
10.2 Promissory Note, dated as of July 7, 2026, between Lincoln Technical Institute, Inc. and Provident Bank.
   
10.3 Mortgage, Assignment of Rents and Leases, Security Agreement and Fixture Filing, dated as of July 7, 2026, by Lincoln Technical Institute, Inc. in favor of Provident Bank.
   
10.4 Continuing Guaranty and Suretyship Agreement, dated as of July 7, 2026, by Lincoln Educational Services Corporation and its wholly-owned subsidiaries in favor of Provident Bank.
   
104 Cover Page Interactive Data File (embedded within the inline XBRL document)
 
3
SIGNATURES
 
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
 
  
Dated: July 8, 2026
 
 
LINCOLN EDUCATIONAL SERVICES CORPORATION
 
 
By:
/s/ Brian K. Meyers
 
   
 
Name:
Brian K. Meyers
 
Title:  
Executive Vice President, Chief Financial Officer and Treasurer
 
 
0001286613 false 0001286613 2026-07-07 2026-07-07

Source: View Original Filing on SEC EDGAR

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