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ITT Educational shares soar on loan agreement

December 5, 2014

Shares of beleaguered ITT Educational Services Inc. skyrocketed 32 percent on Friday after the Carmel-based, for-profit education firm announced it had inked a deal for a $100 million loan.

The company told federal regulators on Thursday that it had reached an agreement with Cerberus Business Finance LLC to borrow $100 million, to be used to pay debt and as collateral for credit.

ITT shares were trading at $9.80 early Friday afternoon, up $2.32 from their previous close.

The stock has lost 70 percent of its value since the beginning of 2014, as for-profit educators have attracted scrutiny from government authorities for questionable student-lending practices. ITT's student enrollment also has been declining.

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