By Andrea Heisinger
Omaha, June 12 - SLM Corp. priced $2.5 billion 8.45% 10-year medium-term notes on Wednesday to yield 8.75%, according to an FWP filing with the Securities and Exchange Commission and a press release.
The notes (Baa2/BBB-/BBB) priced at 98.03 to yield Treasuries plus 465.7 basis points. They have a make-whole redemption option of Treasuries plus 50 bps.
The notes feature a change-of-control put.
This was the company's first unsecured note issue since March 2007, and it was significantly oversubscribed, according to the press release.
"We are extremely pleased by the overwhelming market response to this issue and our return to the unsecured corporate bond markets as a source of funding for new student loan originations," said Sallie Mae vice chairman and chief financial officer Jack Remondi in the press release. "This issue further diversifies our funding sources. We anticipate accessing the unsecured corporate bond market more regularly in the future."
Agents were Banc of America Securities LLC, Merrill Lynch, Pierce, Fenner & Smith Inc. and Deutsche Bank Securities Inc.
Co-managers were Barclays Capital Inc., Credit Suisse Securities, RBS Greenwich Capital Markets, J.P. Morgan Securities Inc., RBC Capital Markets Corp. and UBS Securities LLC.
The college loan program is based in Reston, Va.
| Issuer: | SLM Corp.
|
| Issue: | Medium-term notes
|
| Amount: | $2.5 billion
|
| Maturity: | June 15, 2018
|
| Bookrunners: | Banc of America Securities LLC, Merrill Lynch, Pierce, Fenner & Smith Inc., Deutsche Bank Securities Inc.
|
| Co-managers: | Barclays Capital Inc., Credit Suisse Securities, RBS Greenwich Capital Markets, J.P. Morgan Securities Inc., RBC Capital Markets Corp., UBS Securities LLC
|
| Coupon: | 8.45%
|
| Price: | 98.03
|
| Yield: | 8.75%
|
| Spread: | Treasuries plus 465.7 bps
|
| Call: | Make-whole at Treasuries plus 50 bps
|
| Change-of-control put: | Yes
|
| Trade date: | June 11
|
| Settlement date: | June 18
|
| Ratings: | Moody's: Baa2
|
| Standard & Poor's: BBB-
|
| Fitch: BBB
|
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