SLM Corporation Closes an Offering of $500,000,000 Aggregate Principal Amount of 3.125% Senior Notes Due 2026
November 01, 2021 at 04:18 pm EDT
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On November 1, 2021, SLM Corporation closed an offering of $500,000,000 aggregate principal amount of 3.125% Senior Notes due 2026 issued by the Company. The Notes have been registered under the Securities Act of 1933, as amended, pursuant to a registration statement on Form S-3. The Company has filed with the SEC a prospectus supplement dated October 27, 2021, together with the accompanying prospectus dated July 30, 2021, relating to the offer and sale of the Notes. The Notes were issued under an indenture dated June 17, 2015 with Deutsche Bank National Trust Company, as trustee, as supplemented by the third supplemental indenture dated November 1, 2021. The Notes bear interest at the rate of 3.125% per annum. Interest is payable on May 2 and November 2 of each year, beginning May 2, 2022. The Notes will mature on November 2, 2026. The Company may redeem the Notes, in whole or in part, at any time at the applicable redemption prices, as set forth in the Indenture. In addition, if the Company experiences certain change of control events with respect to the Notes, it must offer to purchase all or any part of that holder?s Notes at a purchase price equal to 101% of the principal amount of Notes repurchased, plus accrued and unpaid interest, if any, to, but excluding, the date of purchase. The Company intends to use part of the net proceeds from the Offering to fund the redemption in full of the $200 million aggregate principal amount outstanding of its 5.125% senior notes due 2022, including payment of accrued and unpaid interest and any make-whole premium thereon, and for general corporate purposes, which may include the repayment of debt and future share repurchase programs.
SLM Corporation is a holding company, which operates through various subsidiaries and is a financial brand for higher education. The Companyâs primary business is to originate and service loans it makes to students and their families to finance the cost of their education. It also offers a range of deposit products insured by the Federal Deposit Insurance Corporation. Its primary private education loan product is the Smart Option Student Loan, which emphasizes in-school payment features that can produce shorter terms and reduce customersâ total finance charges. Smart Option Student Loan generally runs for six months after the borrower separates from school but can run for up to 36 months for a small subset of graduate loans. It also offers six loan products for specific graduate programs of study. These include the Sallie Mae Law School Loan, the Sallie Mae MBA Loan, the Sallie Mae Graduate School Loan for Health Professions, the Sallie Mae Medical School Loan, and others.