Sallie Mae Sells Residual Interest in Three Federally Guaranteed Student Loan Trusts
Sallie Mae (NASDAQ: SLM), formally SLM Corporation, today announced the creation of the SLM Student Loan EDC Repackaging Trust 2013-M1. Through this trust, Sallie Mae sold at face value $225 million of BBB-rated bonds with a 3.05-year weighted average life and a 3.5 percent coupon rate. The sale also included the entire residual interest of the trust.
The SLM Student Loan EDC Repackaging Trust 2013-M1 is collateralized by the residual interests from SLM Student Loan Trusts 2006-8, 2006-9 and 2007-1. Sallie Mae will continue to service the student loans in the underlying trusts under existing agreements. The transaction reduced student loan assets by $6.6 billion and related liabilities by $6.4 billion. The gain from the transaction will add approximately $.23 to Sallie Mae's second-quarter 2013 GAAP and core diluted earnings per share.
Sallie Mae (NASDAQ: SLM) is the nation's No. 1 financial services company specializing in education. Celebrating 40 years of making a difference, Sallie Mae continues to turn education dreams into reality for American families, today serving 25 million customers. With products and services that include 529 college savings plans, Upromise rewards, scholarship search and planning tools, education loans, insurance, and online banking, Sallie Mae offers solutions that help families save, plan, and pay for college. Sallie Mae also provides financial services to hundreds of college campuses as well as to federal and state governments. Learn more at SallieMae.com. Commonly known as Sallie Mae, SLM Corporation and its subsidiaries are not sponsored by or agencies of the United States of America.
© 2015 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.