LINCOLN EDUCATIONAL SERVICES CORP 8-K

What Happened
On April 13, 2026, Lincoln Educational Services Corporation (LINC) entered into an amended and restated credit agreement replacing its prior February 16, 2024 facility. The new revolving credit Facility totals $125 million (up from $60 million under the prior agreement), is guaranteed by the company’s wholly‑owned subsidiaries, and is secured by a first‑priority lien on substantially all personal property. The Company reported the transaction in an 8‑K and issued a press release on April 15, 2026.

Key Details

• Facility size: $125 million total, with a $10 million letter of credit sublimit and a $25 million accordion feature to increase capacity.
• Term and maturity: five‑year Facility maturing April 11, 2031.
• Interest: borrower elects either a Tranche Rate (forward‑looking SOFR for 1‑ or 3‑month periods) or a Base Rate (Prime) plus an Applicable Margin. Applicable Margin ranges: SOFR loans 1.50%–2.25%; Base Rate loans 0.50%–1.25%; margin can change quarterly based on the Company’s Total Leverage Ratio.
• Security and guarantee: guaranteed by certain subsidiaries and secured by an amended and restated guaranty and security agreement granting a first‑priority lien on substantially all personal property.

Why It Matters
The amended facility materially increases Lincoln’s committed borrowing capacity (more than doubling the prior maximum) and provides liquidity for working capital and general corporate needs. Because the loans are secured and contain customary covenants and default provisions, this creates a new direct financial obligation and affects the company’s secured leverage profile. Investors should note the maturity (2026 → 2031), the interest rate options tied to SOFR or Prime, and the margin schedule that varies with leverage, all of which influence future interest costs and financial flexibility.