Struggling Midwest College Strikes Deal With Bondholders

Lake Erie College, a small private school in Ohio, entered into a forbearance agreement with bondholders after the school didn’t meet certain covenants it agreed to as part of a debt sale.

The Painesville, Ohio-based institution, which has just over 700 undergraduate students, is the latest small college to see its financial struggles extend into the muni-bond market. It sold about $30 million of debt in 2019 in part to finance a barn and other projects at its 86-acre equestrian center.