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Lincoln Educational (NASDAQ: LINC) expands secured credit facility to $125M

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(Very High)
Filing Sentiment
(Neutral)
Form Type
8-K

Rhea-AI Filing Summary

Lincoln Educational Services Corporation entered into an amended and restated revolving credit facility that increases its borrowing capacity to $125 million, up from $60 million. The facility includes a $10 million letter of credit sublimit and a $25 million accordion feature, giving the company additional access to liquidity for working capital, general corporate and other permitted purposes.

The five-year facility is guaranteed by wholly owned subsidiaries and secured by a first‑priority lien on substantially all personal property, and it matures on April 11, 2031. Borrowings will bear interest at either a SOFR-based Tranche Rate or a Prime-based Base Rate, plus a margin that varies by the company’s Total Leverage Ratio. In its press release, Lincoln highlighted previously announced 19–20% student start growth for the first quarter of 2026 as evidence of demand for its programs and support for its long-term growth strategy.

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Insights

Lincoln expands revolver to $125M, adding secured liquidity for growth.

The company replaced its prior $60 million revolver with a $125 million revolving credit facility including a $10 million letter of credit sublimit and a $25 million accordion. This provides more committed capital for working capital and general corporate needs over a five-year term to April 11, 2031.

Pricing is tied to either SOFR or a Prime-based base rate plus a margin that ranges from 1.50% to 2.25% for SOFR loans and 0.50% to 1.25% for base rate loans, depending on the Total Leverage Ratio. The facility is guaranteed by subsidiaries and secured by first‑priority liens on substantially all personal property, which is typical for this type of revolver.

The press release links this added liquidity to previously announced 19–20% student start growth in Q1 2026, positioning the facility as support for growth initiatives rather than a response to stress. Future filings may clarify how much of the available capacity is drawn and how leverage evolves under the Total Leverage Ratio covenant framework.

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 2.03 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 8.01 Other Events Other
Voluntary disclosure of events the company deems important to shareholders but not covered by other items.
Item 9.01 Financial Statements and Exhibits Exhibits
Financial statements, pro forma financial information, and exhibit attachments filed with this report.
Revolving credit facility size $125 million Aggregate principal amount under amended and restated facility
Prior facility size $60 million Aggregate principal amount of existing credit agreement
Incremental liquidity $65 million Additional available liquidity from increase to $125 million
Letter of credit sublimit $10 million Sublimit within revolving facility
Accordion feature $25 million Additional capacity available under accordion
Facility maturity April 11, 2031 Stated maturity date of five-year facility term
SOFR loan margin range 1.50%–2.25% Applicable Margin over Tranche Rate based on leverage
Base Rate loan margin range 0.50%–1.25% Applicable Margin over Base Rate based on leverage
Student start growth 19–20% Previously announced growth in student starts for Q1 2026
revolving credit facility financial
"entered into an amended and restated revolving credit facility with Fifth Third Bank"
A revolving credit facility is a type of loan that a business can borrow from whenever it needs money, up to a set limit. It’s like having a credit card for companies—allowing them to borrow, pay back, and borrow again as needed, providing flexibility for managing cash flow or funding short-term expenses.
accordion feature financial
"with a $10 million letter of credit sublimit and a $25 million accordion feature"
An accordion feature is a clause in a loan or financing agreement that allows a company to expand the size of a credit line or the amount of securities available under the same contract without drafting a completely new deal. Like a suitcase that can be extended to hold more items, it gives a company quick flexibility to raise extra money, which can help fund growth but may increase debt or dilute existing shareholders—so investors watch it for changes in risk and ownership.
Total Leverage Ratio financial
"The Applicable Margin may change quarterly based on the Total Leverage Ratio at such time"
EBITDA financial
"by dividing the aggregate principal amount of various forms of borrowed indebtedness ... by EBITDA"
EBITDA stands for earnings before interest, taxes, depreciation, and amortization. It measures a company's profitability by focusing on the money it makes from its core operations, ignoring expenses like taxes and accounting adjustments. Investors use EBITDA to compare how well different companies are performing financially, as it provides a clearer picture of operational success without the influence of financial structure or accounting choices.
Secured Overnight Financing Rate (SOFR) financial
"Tranche Rate (which is the forward-looking Secured Overnight Financing Rate (SOFR) for one or three months)"
A secured overnight financing rate (SOFR) is the interest rate on very short, one‑day loans that are backed by high‑quality collateral (like government bonds), so lenders face less risk. Investors care because SOFR is a widely used benchmark that sets the cost of borrowing and the pricing of loans, bonds and derivatives; think of it as a trusted yardstick for short‑term interest costs that influences returns and valuations across markets.
letter of credit sublimit financial
"revolving credit facility in the aggregate principal amount of $125 million, with a $10 million letter of credit sublimit"

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): April 13, 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
NASDAQ

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. ☐
 


Item 1.01.
Entry into a Material Definitive Agreement.
 
On April 13, 2026, Lincoln Educational Services Corporation and its subsidiaries (the “Company”) entered into an amended and restated credit agreement (the “Credit Agreement”) with the lenders referred to therein (the “Lenders”), including Fifth Third Bank, National Association, as lender and as administrative agent, joint lead arranger, and joint bookrunner (the “Agent”), and Flagstar Bank, N.A., Provident Bank and Santander Bank, N.A., as lenders and as joint lead arrangers and joint bookrunners.  The Credit Agreement replaces the credit agreement, dated February 16, 2024, by and between the Company and Fifth Third Bank, National Association, as subsequently amended (the “Existing Credit Agreement”).  The Credit Agreement, which amends and restates the Existing Credit Agreement, provides the Company, as borrower, with a revolving credit facility in the aggregate principal amount of $125 million, with a $10 million letter of credit sublimit and a $25 million accordion feature (the “Facility”), and increases the maximum principal amount thereof from $60 million to $125 million. The proceeds of the Facility may be used for working capital, general corporate and certain other permitted purposes.
 
The Facility is guaranteed by the Company’s wholly-owned subsidiaries and is secured by a first-priority lien in favor of the Agent, for the benefit of the Lenders, on substantially all of the personal property owned by the Company and its subsidiaries pursuant to an amended and restated guaranty and security agreement, dated as of April 13, 2026 (the “Guaranty and Security Agreement”), which amends and restates the existing guaranty and security agreement.  The term of the Facility is five years and matures on April 11, 2031.
 
Each advance under the Facility will bear interest on the outstanding principal amount thereof from the date when made at an interest rate determined, at the election of the Company, at either the Tranche Rate (which is the forward-looking Secured Overnight Financing Rate (SOFR) for one or three months), or the Base Rate (which is a variable per annum rate, as of any date of determination, equal to the Prime Rate), plus an Applicable Margin. The Applicable Margin is determined pursuant to a Pricing Grid, which for loans subject to the Tranche Rate varies from 1.50% to 2.25% and for loans subject to the Base Rate varies from 0.50% to 1.25%. The Applicable Margin may change quarterly based on the Total Leverage Ratio at such time.  The Total Leverage Ratio is determined with respect to the Company and its subsidiaries on a consolidated basis for an applicable quarterly period by dividing the aggregate principal amount of various forms of borrowed indebtedness as of the last day of a determination period by EBITDA (earnings before interest expense, taxes, depreciation and amortization) for such period.  Interest is payable in arrears, either quarterly or monthly, depending on the Company’s interest rate election, with the principal due at maturity.
 
The Credit Agreement contains various customary representations, warranties and affirmative, negative and financial covenants, as well as events of default customary for facilities of this type.
 
The foregoing descriptions of the Credit Agreement and the Guaranty and Security Agreement do not purport to be complete and are qualified in their entireties by reference to the full text of the Credit Agreement and the Guaranty and Security Agreement filed as Exhibits 10.1 and 10.2 to this Current Report on Form 8-K, which are 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.
 
The disclosure contained in Item 1.01 of this Current Report on Form 8-K is incorporated herein by reference.
 
Item 8.01.
Other Events.

On April 15, 2026, the Company issued a press release reporting its entry into the Credit Agreement.  A copy of the press release is filed as Exhibit 99.1 hereto and incorporated herein by reference.
 

The information contained under this Item 8.01 in this Current Report on Form 8-K, including Exhibit 99.1, is being furnished and shall not be deemed to be “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that Section.
 
Item 9.01.
Financial Statements and Exhibits.
 
(d)
Exhibits:
 
Exhibit
Description
   
10.1
Amended and Restated Credit Agreement, dated as of April 13, 2026, by and among the Company, as Borrower, and the lenders referred to therein, including Fifth Third Bank, National Association, as lender and as administrative agent, joint lead arranger, and joint bookrunner, and Flagstar Bank, N.A., Provident Bank and Santander Bank, N.A., as lenders and as joint lead arrangers and joint bookrunners.
   
10.2
Amended and Restated Guaranty and Security Agreement, dated as of April 13, 2026, by and among the Company, as Borrower, and its subsidiaries, Lincoln Technical Institute, Inc., New England Acquisition LLC, Nashville Acquisition, L.L.C., and NN Acquisition, LLC, as Guarantors in favor of Fifth Third Bank, National Association, as agent for the lenders.
   
99.1
Press Release of Lincoln Educational Services Corporation dated April 15, 2026
   
104
Cover Page Interactive Data File (embedded within the inline XBRL document)


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:  April 15, 2026
 
   
 
LINCOLN EDUCATIONAL SERVICES CORPORATION
 
 
By:
/s/ Brian K. Meyers
 
 
Name:
Brian K. Meyers
 
Title:
Executive Vice President, Chief Financial Officer and Treasurer




Exhibit 99.1

Lincoln Educational Services Announces Increase of Credit Facility to $125 Million
to Support Growth Initiatives

Enhanced liquidity and a strong balance sheet provide a solid foundation for sustained growth and long-term success

PARSIPPANY, N.J., April 15, 2026 – Lincoln Educational Services Corporation (Nasdaq: LINC) today announced that it has entered into an amended and restated revolving credit facility with Fifth Third Bank, National Association, as lender and as administrative agent, joint lead arranger, joint bookrunner, and Flagstar Bank, N.A., Provident Bank, and Santander Bank, N.A., as lenders and as joint lead arrangers and joint bookrunners. The credit facility, which amends and restates the Company’s prior credit facility with Fifth Third Bank, increases the aggregate principal amount from $60 million to $125 million, with a $10 million letter of credit sublimit and a $25 million accordion feature. The $65 million of additional available liquidity provided by the amended and restated credit facility enhances the Company’s financial flexibility to execute its growth initiatives and meet its long-term operating objectives. The credit facility has a term of five years and matures on April 11, 2031.

"The amended and restated revolving credit facility, along with our strong balance sheet and robust cash flow, provides Lincoln with ample financial flexibility to achieve our long-term growth objectives," said Scott M. Shaw, President and Chief Executive Officer. "The 19-20% student start growth that we previously announced for the first quarter of 2026 clearly demonstrates the interest in our programs and the successful execution of our growth strategy.  We remain focused on delivering value to all our key stakeholders, and we believe the increased liquidity and strategic investments will enable us to achieve sustained long-term success.”

Additional information regarding the terms of the amended and restated credit facility is contained in a Current Report on Form 8-K filed with the SEC.

ABOUT LINCOLN EDUCATIONAL SERVICES CORPORATION

Lincoln Educational Services Corporation is a leading provider of diversified career-oriented postsecondary education. Lincoln offers recent high school graduates and working adults career-oriented programs in skilled trades, automotive technology, health sciences and information technology. Lincoln has provided the workforce with skilled technicians since its inception in 1946.

Lincoln currently operates 22 campuses in 12 states under 3 brands: Lincoln College of Technology, Lincoln Technical Institute and Nashville Auto Diesel College.

FORWARD-LOOKING STATEMENTS

Statements in this press release and in oral statements made from time to time by representatives of Lincoln Educational Services Corporation regarding Lincoln’s business that are not historical facts, including those made in a conference call, may be “forward-looking statements” as that term is defined in the federal securities law. The words “may,” “will,” “expect,” “believe,” “anticipate,” “project,” “plan,” “intend,” “estimate,” and “continue,” and their opposites and similar expressions are intended to identify forward-looking statements. Forward-looking statements are based on information available at the time those statements are made and/or management’s good faith belief as of that time with respect to future events, and are subject to risks and uncertainties that could cause actual performance or results to differ materially from those expressed in or suggested by the forward-looking statements. Forward-looking statements should not be read as a guarantee of future performance or results and will not necessarily be accurate indications of the times at, or by, which such performance or results will be achieved, if at all. Generally, these statements relate to business plans or strategies and projections involving anticipated revenues, earnings, or other aspects of the Company’s operating results. The Company cautions you that these statements concern current expectations about the Company’s future performance or events and are subject to a number of uncertainties, risks, and other influences, many of which are beyond the Company’s control, that may influence the accuracy of the statements and the projections upon which the statements are based including, without limitation, impacts related to 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 cybersecurity; 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. All forward-looking statements are qualified in their entirety by this cautionary statement, and Lincoln undertakes no obligation to publicly revise or update any forward-looking statements, whether as a result of new information, future events or otherwise after the date hereof.


For further information, please contact:

Brian Meyers
Chief Financial Officer
Lincoln Educational Services Corporation
973-736-9340
bmeyers@lincolntech.edu
For more information, go to www.lincolntech.edu.



FAQ

What did Lincoln Educational Services (LINC) change in its credit facility?

Lincoln Educational Services replaced its prior revolving credit facility with a new amended and restated agreement providing a larger $125 million revolver. The new facility includes updated terms, covenants, and lender group, while maintaining typical secured, guaranteed financing structures.

How much additional liquidity does LINC gain from the new credit facility?

The amended facility increases the aggregate principal amount from $60 million to $125 million, adding $65 million of available liquidity. Management links this extra capacity to supporting growth initiatives and long-term operating objectives across Lincoln’s education programs and campuses.

What are the key terms and maturity of LINC’s new revolving credit facility?

The revolving credit facility totals $125 million, includes a $10 million letter of credit sublimit and a $25 million accordion, and has a five-year term. It matures on April 11, 2031, with interest based on SOFR or a Prime-based rate plus a variable margin.

How is Lincoln Educational Services’ new facility secured and guaranteed?

The facility is guaranteed by Lincoln’s wholly owned subsidiaries and secured by a first‑priority lien on substantially all personal property. This structure gives lenders strong collateral backing while allowing the company ongoing access to revolving borrowings under customary covenants and events of default.

What interest rates apply under LINC’s amended credit agreement?

Borrowings accrue interest at either a SOFR-based Tranche Rate or Prime-based Base Rate plus an Applicable Margin. That margin ranges from 1.50%–2.25% for SOFR loans and 0.50%–1.25% for Base Rate loans, determined quarterly by Lincoln’s consolidated Total Leverage Ratio.

How does recent student growth relate to LINC’s larger credit facility?

Lincoln’s CEO highlighted previously announced 19–20% student start growth for the first quarter of 2026 alongside the facility increase. Management views this growth as evidence of program demand and sees the added liquidity as support for executing its broader long-term growth strategy.

Filing Exhibits & Attachments

6 documents