Business
Lincoln Educational Services Closes on the Sale of its Nashville, TN Campus for $33.8 Million
The school will remain in operation at the current site while a new campus location is determined. Parsippany, NJ, June 13, 2023 (GLOBE NEWSWIRE) -- Lincoln
About this update from Lincoln Educational Services Corporation
[{"type":"text","content":"The school will remain in operation at the current site while a new campus location is determined.\nParsippany, NJ, June 13, 2023 (GLOBE NEWSWIRE) -- Lincoln Educational Services Corporation (NASDAQ: LINC), a national leader in specialized technical training for more than 75 years, announced today that it has closed on the sale of its Nashville campus to an affiliate of SLC Development, LLC for $33.8 million pursuant to the previously reported Contract for the Sale of Real Estate entered into in 2021. In connection with the sale, the parties entered into a lease agreement allowing Lincoln to continue to occupy the nearly 16-acre property located at 1524 Gallatin Avenue in East Nashville and operate its campus on a rent-free basis for a period of 15 months while the Company seeks to relocate to a more modern facility within the Nashville market. In addition to the initial 15-month term of the lease, Lincoln has three options to extend the lease for consecutive 30-day terms at $150,000 per extension term. “Our Nashville campus will continue to be fully operational, with no interruption to our training programs, as we seek to relocate to a newer, state-of-the-art facility and carry on the legacy that began in 1919 as Nashville Auto-Diesel College and continues today,” said Scott Shaw, Lincoln Educational Services Corporation President and CEO. While the new campus location has not yet been determined, Lincoln expects that the new facility will be EBITDA neutral for the first year of operations given the anticipated efficiencies. The Company expects to invest $15 to $20 million for the buildout of the new campus which will include two new programs with the addition of HVAC and Electrical. The net proceeds from the Nashville sale are approximately $33.2 million, net of closing costs, which will be available for working capital, acquisitions, other strategic initiatives and general corporate purposes. The property’s carrying value is approximately $4.5 million. The estimated fair value of the rent for the 15-month rent-free period is between $2.0 million to $2.5 million. ### 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 conferenc...