Results of Sallie's Tender Offer - Analyst Blog

SLM Corporation (SLM) or Sallie Mae announced the results of its separate modified ‘Dutch Auction' cash tender offers, announced on August 26, 2010, for its Early 2011 Notes and Late 2011 Notes.

The company, as of the expiration date on September 23, received tenders of approximately $424.4 million for Early 2011 Notes and $236.4 million for Late 2011 Notes. The maximum principal amount to be expected was fixed at $500 million for both the offerings.

Sallie Mae, under its Early 2011 Offer, received tenders for $268.0 million principal amount of Floating Rate Notes due in March 2011, representing 31.2% of the principal amount outstanding and $156.4 million of 5.45% Notes due in April 2011, roughly 22.2% of the principal amount outstanding.

Under its Late 2011 Offer, the company received $119.2 million and $117.3 million of principal amount of Floating Rate Notes due in October 2011 and 5.40% Notes due in October 2011, respectively. These offerings represented 11.3% and 25.1% of the principal amount outstanding of the Floating Rate Notes due in October 2011 and 5.40% Notes due in October 2011, respectively.

The Dealer Managers for the Tender Offers were BofA Merrill Lynch and Deutsche Bank Securities and the Information Agent and Depositary Agent was D.F. King & Co. Inc.

Based in Reston, Virginia, SLM Corporation is the leading education finance company managing student loans for approximately 10 million customers. Sallie Mae is the parent company of various college savings, education-lending, debt-collection and other subsidiaries. The company's primary business is to originate, service and collect student loans.

We currently maintain a Neutral recommendation on the stock.