S&P still may cut Sallie Mae

Standard & Poor's said the BBB+/A-2 counterparty credit rating on SLM Corp. (Sallie Mae) remains on CreditWatch with negative implications, where it was placed on April 16.

A group of investors headed by J.C. Flowers & Co., which includes JPMorgan Chase Bank NA and Bank of America N.A., announced that it does not plan to complete a leveraged buyout under original terms.

According to S&P, the buyout group claims Sallie Mae's business has been seriously hurt by new government legislation and revised its offer to $50 per share plus warrants from an original price of $60 per share. This offer has now expired, increasing the likelihood that the deal will fall apart, the agency said.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.