Lincoln Educational Services Set To Raise $81M Through Real Estate Sale

  • Lincoln Educational Services Corp LINC has entered into a sale-leaseback agreement for Denver, Colorado, and Grand Prairie, Texas campuses.
  • The sale agreement for Lincoln's properties in Denver and Grand Prairie is for an aggregate purchase price of $46.5 million. It plans to enter into a triple-net lease agreement for a twenty-year term.
  • Lincoln has entered into a separate agreement to sell the property hosting its Nashville, Tennessee campus for $34.5 million. The company's new campus location has not yet been determined.
  • Lincoln Educational Services expects the two transactions to generate gross proceeds of $81 million.
  • Lincoln intends to use $17 million to repay the outstanding term loan balance and to invest $10 million - $15 million for the buildout of its new Nashville campus.
  • Price Action: LINC shares are trading higher by 10.1% at $6.9 on the last check Tuesday.
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