Lincoln Educational Services Corporation entered into a $40 million revolving credit facility with Fifth Third Bank. The credit agreement is for an aggregate principal amount of $40 million, including a $10 million sublimit for letters of credit and an additional accordion option to upsize the credit facility by an additional $20 million upon satisfaction of certain terms and conditions. The proceeds may be used for working capital, general corporate purposes and to support the company’s strategic growth initiatives, including program and campus expansions.

The facility is guaranteed by the company’s wholly-owned subsidiaries and is secured by a first priority lien in favor of the bank on substantially all of the personal property owned by the company and its subsidiaries. The term of the facility is 36 months, maturing Feb. 16, 2027.

“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,” Scott Shaw, president and CEO of Lincoln, said. “We remain committed to our students and the proceeds from this credit facility will allow Lincoln greater financial flexibility to continue delivering positive student experiences.  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, Lincoln’s 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.”