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.